we rely on the front-line regulators, the nsa and also the a cpa. so it is correct that we could not verify bank statements. sometimes we look at anti-money laundering things le in 2010 was another review. sometimes we end up with an enforcement action, like in 2000 we ended up with an enforcement action against peregrine that was settled back then 12 years ago. looking back on it workpapers i wonder if after that flags of what as better caught in 1999 and 2000 so forth. so at the same question you have abetter roadwork and are looking to see how hey c do better as well. >> okay, in other question for you. the national features organization is safe is organization has been reported in "the wall street journal" that the ceo of an assay express his opinion at a congressional staff briefing that auditors are looking for fraud, end of quote when conducting regular audit confirms. would you agree with mr. ross that are auditors who are auditing these brokerage for are looking for signs of fraud or not? >> no, i am not myself an auditor. i've heard there'

we rely on the front-line regulators, the nsa and also the a cpa. so it is correct that we could not verify bank statements. sometimes we look at anti-money laundering things like in 2010 was another review. sometimes we end up with an enforcement action, like in 2000 we ended up with an enforcement action against peregrine that was settled back then 12 years ago. looking back on it workpapers i wonder if after that flags of what as better caught in 1999 and 2000 so forth. so at the same question you have a better roadwork and are looking to see how they can do better as well. >> okay, in other question for you. the national features organization is safe is organization has been reported in "the wall street journal" that the ceo of an assay express his opinion at a congressional staff briefing that auditors are looking for fraud, end of quote when conducting regular audit confirms. would you agree with mr. ross that are auditors who are auditing these brokerage for are looking for signs of fraud or not? >> no, i am not myself an auditor. i've heard

we rely on the front-line regulators, the nsa and also the a cpa. so it is correct that we could not verify bank statements. sometimes we look at anti-money laundering things like in 2010 was another review. sometimes we end up with an enforcement action, like in 2000 we ended up with an enforcement action against peregrine that was settled back then 12 years ago. looking back on it workpapers i wonder if after that flags of what as better caught in 1999 and 2000 so forth. so at the same question you have a better roadwork and are looking to see how they can do better as well. >> okay, in other question for you. the national features organization is safe is organization has been reported in "the wall street journal" that the ceo of an assay express his opinion at a congressional staff briefing that auditors are looking for fraud, end of quote when conducting regular audit confirms. would you agree with mr. ross that are auditors who are auditing these brokerage for are looking for signs of fraud or not? >> no, i am not myself an auditor. i've heard

the development of an intelligence capacity, breaking down of the walls between ourselves and cia, nsa, and the intelligence community, but i think always in the back of our mind, everyone at the bureau knew we could not let this happen again. on that day, i felt like that high school student who got the wrong assignment when the president asked that question, but it has been in the back of my mind since then. each president, for most on their mind is protecting the american public from another attack. >> we have a number of questions that deal with mission areas you did not mention specifically, given the importance of cyber security and espionage and counterterrorism. i wonder if you could say a little bit about two things, one being your sense of where the country is in respect to drug policy. the fbi is involved with drug policy along with other law- enforcement agencies, but more generally, how you approach the challenge of managing this broad range of responsibilities that the fbi has to continue to attend to, while at the same time prioritizing the missions you mentioned. >> act

of innocent americans. >> eliot: although what we've been hearing on this show and particularly the nsa has access to anything anyway. in a way putting up another boundary may or may not be a futile effort. bianca, it does seem as though cyberattacks are part and parcel of on-going military strategies. if you look at the effort to prevent iran from getting a nuclear weapon and the viruses we've implanted in their systems, it is almost inevitable as you say that nations will retaliate against us and we are incredibly vulnerable from water to electricity to our hospitals and bank systems. what meaningfully can be done to erect a barrier to that access from foreign nations? >> there is always canned food, right? bunkers. no but you know, what's interesting is you point out there is the fear of retaliation from governments but i think what's tricky about this scenario is it is not just governments. there are all sorts of hackers. you look at what happened with private companies and you know, it could be a group of people that have come together to teach them a lesson or prove that they can

not talk to criminal agents and vice versa, much less have persons in the fbi talked to the cia or nsa or others. the great benefit of the patriot act is it did away with that and enabled us to build those relationships, change that culture, and understand that in order for us to be successful, we had to work closely together on any number of these threats. >> is there anything you would >> what about national security letters? >> national security letters was the device given to us to gather information on the existence of the telephone call. we had a procedure we needed to follow. in most cases, we did. in a number of cases, we did not have the procedures. we move ahead quickly and did not put in place procedures to assure we have the proper paperwork and foundation in requesting those letters. we have put into place a software program that insures you have the appropriate foundation before a new issue a national security letter. we have had training. we have had continuous oversight on that issue. in the overall context of things, it was not that we were getting information to which

the head of the news division, sam water son, i has learned from his source from the nsa that they're they're hacking phones to get information. and to put stories in the magazine there in the tabloid magazine. in the process the show takes us to the nsa data mining, which is a polite way to describe massive massive, warrantless wiretapping against people who are not terrorist as soon as we're going to show you the clip and then afterwards show you how a newsroom handles a situation like this. >> why are you whistle blowing. >> the soviets the way their government made people live their lives was a very good reason to fight them. after 9/11 we started doing the exact same thing. i didn't spend my life fighting communism to have it come this way. >> cenk: i wish, ben, they would operate in a way where they cared about a whistle belower like that. but in this data mining, and none of the newsroom that i've i've spoken, give a rats. if the democrats say something that's relevant. but and if the republicans say that it's very well haven't. but if they agree, it would be, like whatever. i

i thought this was really useful for me as the commander of cyber command and the director of nsa to look at how we set the standards for how we're going to train our force as one team, not three teams, because it does not make sense to me that the defender only defense, exploiters only exploit an attacker's only attack, because it is one network. we would never have come up with that paradigm. you do not have infantry guys who you are in the defender infantry, you are the re-con infantry, you were the attack infantry. think of how ludicrous that is, but that is what we have an hour networks today as a military. and the department of defense is different than any other department in our government. we have the responsibility to provide offensive capabilities and to defend this nation. so we have to train our folks differently. when you look at what the book teaches you on it, one of the things it talks about is the first step is no your adversary. this is like the art of war. know your enemy. somebody might say you ought to know yourself too. we will come back to that. know your enem

doesn't -- pales in comparison that they have not done the core issues that are the very heart of the nsa. >> reporter: he says they're not in favor of a federal takeover, but if things don't dramatically improve in the next few month, file papers asking for a federal takeover. >> if the federal government does decide to take control, it could bring big changes to the oakland police department. charles clifford spoke with a former san francisco police chief about what a federal takeover could mean for opd. >> reporter: former san francisco police chief tony rubarrow says when it comes to a federal takeover, the judge handling the case has the final say >> he will be the one who will say this is federal law that you have to comply with. >> reporter: but what would a federal takeoverlook like? >> hypothetically you hire 200 more officers within a six-month period, hire outside investigators for investigation of officer misconduct. putting somebody in the administration of the police department to insure compliance on a day to day basis. >> reporter: he also says the judge could bring in oth

the manno owe spoke for nsa, not nsa, but the national security adviser to the president. navy, a press spokesman for panetta don't know anything about the book and haven't read it. >> i made the rounds yesterday and said was this book vetted? i say this because i had to take a pen and sign a nondisclosure agreement in the intelligence community saying i would never reveal classified information that i learned in the course that work. i'm bound to that by law. as is any navy seal. anybody with a top secret clearance. what you see here is an interesting gambit. they've skirted the process. they hired their own expert. think said you vet it. that is not the way -- this is not an elective. this is a requirement. this is a mandatory. so i guess the gamble is here you have a true american hero, part of the team that went in after osama bin laden and took him down. i guess the gamble is, is the government really going to come after a guy like that. the question is did he do a good job of vetting his own book? >> are you surprised he would even do a book. that's what i find astou

many of the folks out of work for nsa, kevin, you guys all get hit with, get up on backtrack.hy don't people get up on backtrack. let me tell you from my perspective. here's what i am learning it. i am convinced that we don't train our people to a standard that is high enough to defend our systems. we don't. we say we're going to operate as a team, but each component of our team is trained different. our signal community is trained to operate and defense. our intelligence exploitation team is trained and cleared at a different standard, and normally this information cannot be shared top secret level information cannot be shared with the folks who are at a secret level. and then we have an attack community, and everybody is trained to different standards over here. so, if you look at what's going on in these networks, the offense has the vantage. and the harder part is defending them. but what we are doing is we're training the defense community not on the attack it goes on to export capabilities that are out there, but we are training them on how to operate and put up the netw

it is important to note that as the nsa director, a report to the secretary of defense. i actually execute the authorities on behalf of the secretary. i worked those portions through general bob taylor at stratcom, who then goes to the secretary. half of me is reporting this way and the other half is reporting that way. nobody knows what we're doing except for one of us. and i'm not saying who. i suspect it is the secretary. and so i think that what we will look at is how we streamline that process and they are working their way through that. i'm sure it will take some more time. the next question? >> an important and growing issue is the use of mobile devices in the cyberthreat associated with them. this brings up the realm of communication. there are now lots of networking entering the marketplace of being used by military members. does cyber, feel it should integrate with electronic warfare efforts, such as the integrated electronic warfare is some? >> yes. would you like me to expand on that? i do think that as we go forward, come you know, it's kind of interesting.

i started that blacklist with that quote from frank church where he said basically if the nsa ever turnsiant listening ears in on the united states, surveillance will take over and privacy will be dead. in the wake of 9/11, what happened? the giant ears were turned inward, and we'll all suspects now. everything we do, text messages, e-mails, gps positioning, phone calls, it's all recorded, sifted, and stored. lou: security agencies treat our grandparents and our infants as if they are not only suspects, but terrorists who should bear the brunt of security forces. the -- this book, the premise of the book, how did this occur to you to focus as you have on this environment that we're in, to bring in the ideological, the -- what would it be? religio-ideological world changing around us. >> the writer's job is to beat the headlines. we talked about this, and i was brought in with other creative thinkers to look over the horizon and see where the next threats are coming from. that's the same process i apply for books. i'll tell you, lou, i saw total surveillance in the country, how the explos

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we should incorporate the nsa rules those that were finalized and put them in default. i think there is a consensus to do that. but also i think we should get futures customers access to information about how the assets are held. where is the money held? i think we have to enhance internal control of the futures commission merchants regarding how customers' accounts are handled and i also think we need to carefully consider additional roles played out how they conduct their exams and all bets and as the ranking member said, i think it's been embedded in the system for decades for self regulation and then we examined the examiners but we need to look at how we examine the examiner and set their rules in place. we will conduct a full role on the examination and audit oversight looking openly for improvements in putting getting advice from the public company accounting oversight board that's been gracious enough to tell how do they do with the do and how can we learn from what they do. and based on those conduct san oversight i think we must do everything in our authoritie

photocopied documents for the russian embassy and john cancrofts who joined the equivalent of your nsa. the cambridge spies, motivation, characters, similarities and differencess have fascinated novelists ever since they were exposed and continue to fascinates me. why did a group of bolden boys fall under the sway of a kgb recruiter from a brutal regime and the trade their own country? what was it about them, the society they live in, their relationship with each other, their relationship with their recruiter that turned them into the most successful group of spies ever. by the time i joined mi5 in the late 1960s three of that group had fled and were living in the soviet union no doubt having a dreadful time and hankering after the delights of the west but they have gone. they went together in 1961. when they were alerted by can philby who was working for mi6 at the british embassy in washington and who knew the russian code had been broken and burgess and maclean were about to be exposed and he told them and off they went to the soviet union. he later followed on when he himself felt

we worked to put out good secure form of android operating system, nsa did and now we are looking atell how do you develop a more secure platform for the hardware we really trust? what are the things we can and should be working on to secure this? in the meantime, the malware against google android grew more than 500% since july of 2011 in one year. look at the attacks that are going on. why does that cause us concern? as you look at it, if you go back and look at all the things that are going on in our area the good things. the bad things the attacks are growing exponentially. all the adversary has to do is find a way in. finding those ways and are getting easier, not harder as we add more things. we have got to work together. to look at how we can close those gaps and that is one of the things i want to talk about today. the first thing i'm going to do is ask a question here. how many of you have heard of backtrack? okay, pretty good, pretty good. backtrack is a course or something you can get on the network and say downloadable system, linick system or penetration system and many

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>> reporter: we were told by general alexander the head of cyber command at nsa there was increase in cyber attacks, 20 fold increase from 2009 to 2011. homeland security said their cyber term received a call about a suspect or real cyber intrusion about every 90 seconds. >> i can tell you that iran's capability is getting better and the more pressure that is on iran from the international community they're not necessarily a rational actor. a rational actor doesn't plan to plant a bomb and blow up the saudi ambassador in the united states capital or the. >> reporter: so what you see with cyber are a handful of elements. you see the hacktivists that want to disrupt the system. you have what congressman rogers referred to as the state actors and most significantly with with iran they are seeing an increase in their cyber capability and the issue here is that iran is not a rational or predictable actor the way they use that capability. jenna. jenna: in the course of your report, they received calls twice just? the short time we've been talking. >> reporter: every 90 seconds. pretty aston

so we are doing things that the nsa, fbi and others are working to make sure that we are able to better safeguard our environment and also be able to respond and be resilient. it is one of the approaches, if you take down some part of the infrastructure, you want to be able to recover very quickly. >> one final question before we get to questions from the audience. what has to do with this investigation that is going on? everyone from mitt romney to some republicans on the hill, they have accused members of the administration of leaking sensitive details for the president's political benefit. they talk about iran and selecting john targets in the president's involvement in that. and the stl is investigating all of that. what do you say in response to that? >> welcome a couple things. of things. as you point out, there are investigations underway so we have to be mindful and respectful of that. secondly, the president has made it very clear that any leak of classified national security information is something that should be rigorously pursued and prosecuted, if in fact, there was a viol

but we can't wait, so we're doing things dhs in conjunction with nsa, fbi, others working to make surewere able to better safeguard our environment, but also respond and be resilient. one of the approaches is if you take down the critical infrastructure, what should be able to recover very quickly. >> one question before we got a questions from the audience of people should be ready for questions. this has to do with the leak investigation going on. everyone from the romney to some republicans on the hill have accused members of the administration of details for the president's political benefit. they sort of hunt for andrade osama bin laden. they talk about the virus in iran. they talk about selecting drug targets in the president's involvement in the ses and all of that. they even see the foiled terrorist plot in yemen. and that wasn't clear whether that leak was domestic or overseas. what do you say in response to that? >> when as i should point out investigations underway. we have to be mindful of that and respect love the investigative process. secondly, the president has made it

handed over suitcases of documents to be photocopied and john who joined which is the equivalent of your nsaambridge five characters, and differences have fascinated novelist ever since they were exposed. abo they continued to fascinate meut.uir why did they fall under the kgb recruiter and the communist regime in turn on their own country? their relationship with each other than their recruiter, what turned them in probably the mostte successful group of spy is never? 16 by the time i joined three n had fled living in the soviet union have a a dreadful time after being in the west. work but in 1951 when they were who alerted from mi6 who knew some of the russians had been broken and two weren about to be exposed. he told them and off they went to the soviet union. copper later he himself fell under suspicion. even when i joined in the early '70s british and u.s. intelligence was haunted by that penetration of the british as stablish meant. there was a sense you couldfor t trusthe nobody and anybodye. could work for the other side. the only one that ie to personally met was the fifth duriuse

in fact, i understand congress used are federal employees help nsa programs as a template for providing affordable health care. and to bring up paul ryan, if he has such a great economist, how come it's not tearing apart your programs that are helping us in the congress, such as you receive lifetime pensions or lifetime health care. and if i remember right, if an employee pay certain company and i lose my job, i lose all those benefits. how come you don't lose your benefits? postcode mr. gingrich. >> guest: you raise some interesting points, but they're very misleading. congress has reform the pension plan to the refined contribution plan and the defined benefit plan is to be. and lots of companies people are not long-term benefits and when they get older, members of congress on medicare just like everybody else. i think that part of it is not an accurate perception. the key difference is no corporation, including federal employees in the mouth to control corporate america. you have a wide range of choice. if you look at the benefit act, it's a good model for thinking about how to have

with other intelligence collectors, nsa, cia particularly collecting that intelligence helping inform our daily actions. as i mentioned last year every day we start, the senior leadership team of tsa starts with a classified intelligence briefing here is what the terrorists are thinking in terms how they might go about causing us harm and that's the challenge that we base. now as it relates to cargo i mentioned the 2010 plot because we see particularly al qaeda in arabian peninsula being interested in bringing down any aircraft coming to u.s. or of course within the u.s. which believe that the layers of security that captain moak mentioned that we have here in the u.s. clearly serve as a deterrent. we know that from classified intercepts and human reporting. so we believe the layers of security we have here are a deterrent. that being said, then how do we work with our international partners at the over 275 last points of departure coming to the u.s., particularly as it relates to passenger and all cargo, how can we ensure that their standards are such that we can have the highest lev

there are members of the nsa, the cia, state police, local police, you make it.y are members of the task force. we cannot do it without them. i think we got a lot smarter involving the private sector. i do not think we pay less attention to the before and bringing them into -- i do not think we paid enough attention to bringing them in before. >> us talk about interpol. for the sake of making it easy to go down the line. here is something you tell me about interpol before we had this session. interpol is not like jason bourne, which i thought it was. i thought there were people crashing through windows. i thought you could do the jason bourne stuff. can you explain a little better what interpol as? >> absolutely. i think interpol is -- there is a lot of confusion about interpol. basically the u. and of police. it is made up of the national police agency's. in the united states it is a little more complicated. it is very important. i think a lot of this forum has been on the classified side and how information has been shared and better between the fbi and militar

we have this collectors, nsa, and a foreign security, forming what we do on a basis. local, domestically with the fbi, the local law enforcement officers here, all concerned citizens -- all that information comes int to tsa so we can take that information and translate that into something where we can help prevent the next possible attack. we are at the other end of the continuum from the collectors overseas and the great work we have heard about in terms of what dod has done, promoting safe havens, so all these things have contributed the place we are today so we know where the threats are, we know we face a determined adversary regardless of how much they have been affected tthrough dod and other actions. as we have seen recently with the underwear bomber. >> they are still very keen on airlines. it is such a spectacle. 9/11 at such a demonstration in effect. let's talk about those threats. what keeps you up at night? what kinds of threats are you most concerned about? >> the focus for tsa is domestically, with people who you meet. there are about to hear the 75 air

there are members of the nsa, the cia, state police, local police, you make it. they are members of the task force. we cannot do it without them. i think we got a lot smarter involving the private sector. i do not think we pay less attention to the before and bringing them into -- i do not think we paid enough attention to bringing them in before. >> us talk about interpol. for the sake of making it easy to go down the line. here is something you tell me about interpol before we had this session. interpol is not like jason bourne, which i thought it was. i thought there were people crashing through windows. i thought you could do the jason bourne stuff. can you explain a little better what interpol as? >> absolutely. i think interpol is -- there is a lot of confusion about interpol. basically the u. and of police. it is made up of the national police agency's. in the united states it is a little more complicated. it is very important. i think a lot of this forum has been on the classified side and how information has been shared and better between the fbi and mil

there are members of the nsa, the cia, state police, local police, you make it. they are members of the task force. we cannot do it without them. i think we got a lot smarter involving the private sector. i do not think we pay less attention to the before and bringing them into -- i do not think we paid enough attention to bringing them in before. >> us talk about interpol. for the sake of making it easy to go down the line. here is something you tell me about interpol before we had this session. interpol is not like jason bourne, which i thought it was. i thought there were people crashing through windows. i thought you could do the jason bourne stuff. can you explain a little better what interpol as? >> absolutely. i think interpol is -- there is a lot of confusion about interpol. basically the u. and of police. it is made up of the national police agency's. in the united states it is a little more complicated. it is very important. i think a lot of this forum has been on the classified side and how information has been shared and better between the fbi and mil