it's friday so let's take stock of this whole m.f. global issue because it's been almost six months and since and the global surprise its customers with this rather apropos hall the green surprise bankruptcy filing and if global filed for chapter eleven bankruptcy protection we are continuing to track the bankruptcy of the and global pharma brian by john for signs we are continuing to go through all of this. bankruptcy filing just this morning by m.f. global. everyone was paying attention when it was breaking news but since then we've heard reports from sources close to the investigation in the mainstream press saying that that case has gone cold but the case really gone cold or are those who are in charge of the investigation the regulators and the trustees simply spray and teflon on every potentially sticky piece of evidence that could lead to criminal prosecutions and ultimately the recovery of stolen customer money we wish that m.f. global were just a one off affair a bad apple if you will unfortunately it seems more likely to us

but they still money they stole money from m.f. global customers are still money for their debit card customers there's still money in this scandal they still mighty pretty much is the modus operandi of the bank they're thieves they're thieves jamie diamond is a safe the trading commission is expected to accuse j.p. morgan of over extending credit to lehman for two years leading up to his bankruptcy in two thousand and eight using an inaccurate evaluation of lehman's worth improperly counting lehman's customer money as belonging to the firm under federal law firms are now allowed to use customer money to secure or extend credit the arrangement worked well for both parties lehman wanted a larger loan and suggested counting money from the customer account to justify it j.p. morgan complied counting the money as part of lehman's coffers it is unclear whether j.p. morgan knew the money belonged to clients but in the view of regulators it should have the customer funds were kept at a j.p. morgan account the funds belong to investors tra

global where m.f. global's accounts and their customer accounts were held at j.p. morgan the same with lehman brothers the same with bear stearns the same with over and over and over again the same situation happens what do you think of that oh up until recently when they use customer money as collateral to arrange loans and to arrange predatory wealth confiscation there was enough slack in the system where the central bank level they could simply release some more funds and to cover the criminality you know paper over there could be criminality just as the credit collapse of two thousand and eight. it's hard to do that so we see now the in the foreground when when morgan when diamond and j.p. morgan need to steal customer money now it's no longer in the shadows it's in the forefront of all of the daily operations of the street so you can see the hand of jamie going into people's accounts and stealing the money so you lose your funds there you're jamie diamond jefferson county was daley diamond casino italy was jamie diamond in the land italy was jamie diamond. cus

morgan would have known that m.f. global was facing a liquidity issue because they don't at nasa have amounts of due diligence on them and so i just think that kind of we're seeing maybe but i don't want to speculate too much but it sounds like you know it looks like a duck and quacks like a i don't know sometimes to me and they would think it should be investigated as a duck and you are admitting i kind of feel like j.p. morgan and the situation because i took to. trees schools out of the jar yes regaling car. so you can relate you can relate only you don't have to pay twenty million bucks we're going to be you know that shannon actually really hypothecated their goal to alone i one of them to get it to allison and on down the line art as most of these people got it up at saks his office over there ok but it didn't get repotted hypothecated past there because there progresses and they probably just kept let's move on warren which is a good thing in that case ok warren buffett may be the third richest man in the world

morgan would have known that m.f. global was facing a liquidity issue because they didn't massive amounts of due diligence on them and so i just think that kind of we're seeing maybe i don't want to speculate too much but it sounds like you know if it looks like a duck and quacks like a i don't know sometimes to me and they would think it should be investigated as a duck can anyone anything i kind of feel like j.p. morgan and the situation because i took to. school's out of the jar yes. please play. so you can relate you can relate only you don't have to pay twenty million bucks where you want to be known that shannon actually read hypothecated that coldplay alone i one of the. two allison and on the one artist as most of these people but it ended up with such as office over there ok but it didn't get repopulate there because there progresses and they probably just kept let's move on warren which is a good thing in that case ok warren buffett may be the third richest man in the world but he started out some people may

of the now defunct m.f. global when he lobbied against regulations that would have kept him from making a big huge bets on europe it took down the firm with customer money we're also going to get an update on where that case stands as we see lawmakers head to the hill for a nother m.f. global hearing next week thanks lauren the couple account is coming up next so that does it for know for more on the stories we covered go to youtube dot com slash our to america or check our website or to dot com slash usa you can also follow me on twitter. thanks for joining us. more news today violence is once again flared up the phone and these are the images the world has been seeing from the streets of canada. china cooperation zero day. culture is that so much spies on expose people who are nothing less there's the taliban bad guy insane or a murderous right wing fanatic this is what a norwegian court must determine in the wake of last year's massacre of seventy seven feet.

global investors with m.f. global literally were told that their money had vaporized in the bankruptcy of that firm so to what extent is people's moving to gold to physical gold in particular a reflection of people's concerns about property rights and the safety of their money. leaving when you have gold is it or that's a very good point i'm appalled about to see and it will ever allow this and they claim that there's never been a default and they were still proud and proud of it over all these years and yet these people have lost their money something yes gold is a safe haven it's where people should go to but it's also where you have it there are certain e.t.s. that are very shaky in that regard the g.l.d. the big one by h.s.b.c. is the custodian where j.p. morgan is custodian of the s. i l. the the big silver e.t.f. there is a major shortage in each market and you can contrast that to other e.t.f. where that's not the case like the strong asset management group has one of the really good point you brought th

of the now defunct m.f. global when he lobbied against regulations that would have kept him from making a big huge bets on europe that took down the firm with customer money we're also going to get an update on where that case stands as we see lawmakers head to the hill for a nother m.f. global hearing next week thanks lauren the couple account is coming up next so that does it for now for more on the stories we covered go to you tube dot com slash or to america or check our website are to dot com slash usa you can also follow me on twitter. thanks for joining us. the fire. look. more news today is once again flared up look these are the images the world has been seeing from the streets of canada. trying to call for a shot so relieved a. mum.

the end of last year, the obama campaign returned corzine's personal contributions in the wake of the m.f scandal. corzine, the former democratic governor of new jersey testified on capitol hill he does not know what happened to the $1.6 billion of m.f. global funds. finally, florida congressman, republican congressman alan west disinvited from keynote speaker duties at a local naacp fundraiser supposed to happen saturday. huffington post reports at issue, recent comments from west saying some 80 house democrats are members of the communist party. west stood by those comments, despite massachusetts democratic congressman barney frank saying, "not even joe mccarthy would have said anything so stupid." >>> you may feel pretty stupid after hearing about what we uncovered for this next piece. it turns out if you like to eat seafood at seafood restaurants you may be getting ripped off. correspondent william la jeunesse with a not too pleasant fish story. >> what we found is alarming. we found that more than half of the seafood we sampled from restaurants, sushi bars and grocery stores were mis

need clear by foreign minister lavrov that any country which does not automatically extend m.f. and status to russia will not enjoy the benefits of russia's accession agreements that only refers to the united states new things or this program where it may become history before the presidential election in the states or the other things to do well i'm going to be optimistic and say i think that it could be lifted by doing by the end of the current congressional session that is sometime by sometime in july i would. guess another question listen will russia when it will become a full fledged member of the senate would get a possibility to see the united states over this and then restricting free trade. not that i'm aware i don't i mean we extend those formally we have this right i mean. lawsuit. i don't believe so no ok now. do you agree that the. jensen think an amendment is mostly is mostly defended by the so called big chicken. no i think that i think that there is a understanding and awareness that now that russia is going to be a member of the w.t. you know it doesn't provide

talking about increasing the debt over the assets which of course are completely impaired people of m.f. global realize this their assets were impaired they had no assets it was a joke and more of this is happening as you see in deeper down into the muck of realization of its non existence you come to this do you hear that did you hear that i did that's called gold that's the very bottom of this entire posies scheme are about thirty thousand tons of gold in the hands of central bankers and there's about one hundred sixty thousand tons of gold in the globe in toto that's where we're going and the rest of the world understands it that's why the central banks are buying it and that's why countries like iran china russia are trading it with each other to get out of the parties game that is the u.s. dollars. well max exactly and as this story shows the reason the rich got richer in a deflationary environment was because they were able to transform their bad assets to us passengers sitting there like toads on a freaking economic bad well that they post about assets to the banks of the banks p

say the dynamic has completely changed but listen we've got to touch on this john corson scandal and m.f. global because here is kind of a new chapter because what we what we have discovered is that this core zine scandal he reached into customer accounts write a took money a segregated customer money so it's not just billionaires playing with each other in ways that ultimately do cause problems for it this was a direct this is just stealing stealing you know no way to round it it's so but of course iran is nothing has been for brought against them straight talk about this and this is an incredible thing i was just out in california last week and i'm doing some research about how we prosecute say welfare fraud in america right and there was a case that i heard about where a woman who was on welfare she was on public benefits and she she used a public. daycare at a time when she was not allowed to use it and they prosecuted for fraud and put her in jail because she used the government service at a time when she wasn't supposed to be technically right so we actually put people with the mea

beach to enforce the rules already on the books which appeared majorly lacking in examples such as the m.f. global bankruptcy and stiffer fines for manipulation ok what about going after the accusations of manipulation already going on which we had to guess just recently talked about in the silver market as for the price of oil and what's really behind it in chris creases that we have seen what the weak dollar let's take a look at prices ok this is where oil is at when we went to air crude at one hundred four brant crude it went eighteen and a gallon of gas the average at the pump that people are paying it is three ninety two now one of our friends from daily reckoning charles catholic calculated that if the dollar since two thousand and two had been as good as some other currencies these would be the prices that we're looking at for oil and gasoline of the you want eighty two dollars or three ten and then the euro the japanese again and the swiss franc ranging from sixty three to seventy seven dollars for a gallon of oil and for or excuse me for a barrel of oil and between two fifty and t

lehmann brothers m.f. global the hypothecation pop occasion silver market manipulation all goes through blith all goes to london and we see the time and time and time again well in particular the silver market manipulation is alleged to happen politically through london this is what andrew maguire argues this is how he was able to front run j.p. morgan's own manip. lation so if life master says no way do we manipulate markets how would our a team of traders able to front run them if there was no plan behind what they were doing right well silver and gold are for life and these prop traders a source of funds they know that there's a huge demand for of these precious metals as the central banks flood the market with cash so there's a natural upward bias and every once in a while they come in there and they clip the wings of silver and gold these massive bankers short positions and they look so easy money it's easy money it's a source of funds but there is nevertheless the possibility and the potential for in

morgan positioned specially on the m.f. global scandal which add up to goldman sachs so yes well the media points morgan is not very good shape let's just remind you a very important point to come from park who was the p.r. of goldman sachs that said that he has been fired has been fired for what's happened in the press was going on sex and who replaced from current if you know information or good it was the previous p.r. of timothy geithner it's interesting all right so on this topic incest let's talk about measuring geitner. life masters and jamie diamond i mean let's keep in mind that j.p. morgan has ninety trillion in derivatives that essentially they park on the balance sheet of the fed they don't really keep it on their own balance sheet but they nevertheless control it there simultaneously you've got this issue of market making. he claims to be involved with an all manner of markets including global commodity markets we'll get to that in a second simultaneously you've got ben bernanke who goes out and testifies in co

risk because here in washington today mr turque there is a hearing going on about how to prevent an m.f. global type collapse from happening again a firm that collapses taking customer money with it now gold is something that a lot of people own e.t.f. futures and other derivatives which how counterparty risk do you think people should be liquidating the physicians and going into physical gold. yeah i really do but let's look at it from a big picture point of view when you're talking about wealth wealth comes into different forms it comes in tangible assets gold silver houses farmland timber land and it comes in financial assets in a bank accounts insurance accounts and that type of thing financial assets have counterparty risk associated with them the value of that asset is dependent on someone's promise whereas a tangible asset the value is in the asset itself and when you're in a financial bust people are concerned about the promises that have been broken and are likely to be broken as the financial bust continues so it's very natural to see people moving out of financial assets into

hundred sixteen thousand dollars over the years eight puts them in one of the top spots we know with m.f. global his firm imploded and he seemingly still customer money was the c.e.o. of that firm i have not seen him and yet do you think there's a case to be made that spending that kind of money in politics can get you a get out of jail free that no i think that unless the administration space is going to be the decision of the administration. the people of the just sort of those who work on my case that the trial attorney and law and level are very honest generally and they're going to look for the facts and look for the evidence and try to act in that way however the political decisions that are made at these sort of top of the just apartment sometimes you find say in a republican administration that they're going to really go after a republican and kind of had a little bit of that myself you know with the with the bush administration or they make the open decision because when the ministration was famous for not going after their people what the a coma ministration will do we just don

after that a senate hearing from the m.f. global bankruptcy. >> the aclu believed for some time that police departments around the country are tracking people's cell phones on a routine basis, often without getting a warrant based on probable cause. >> should tracking a cell phone require a warrant? monday, american civil liberties