five months before the firm collapse that you know he really wasn't down and dirty with the business and beyond that the sub prime mortgage business he he really didn't have a good clue about what was happening at business and it later came out that really nobody did you know the management style of bear stearns was very siloed so different parts of the company really didn't have a clue what other parts of the company were doing and you know at the end you know everybody kind of thought the guys at the top had some sort of bird's eye view. and in fact they didn't but but beyond that the firm was it was effectively mortgaging itself and refinancing that mortgage every day for many years in the commercial paper market and the reason they did that was because it was it was a lot cheaper to do than taking on long term debt so you know there were a lot of things that were done to maximize profits you know for the executives at the firm and certainly jimmy cayne led bad and at the end it ultimately doomed them almost did j.p. morgan take out bear stearns or what was that deal ultimately consummated that well it was ultimately consummated at about ten bucks

a share whatever regionally had come out in the number everybody remembers is that on not on that monday march seventeenth st patrick's day the public learned that the company was going to be sold for two dollars per share and what happened after that was that which effectively meant that j.p. morgan was going to buy this firm for barely more money than in the firm's headquarters building on madison avenue it was worth what happened was that there was a shareholder revolt and at one point jimmy cayne was exploring the possibility of actually blowing up the firm and taking it into bankruptcy and and just effectively said you know i'm going to take everybody down with me so after that revolt it was clear to jamie dimon and everybody j.p. morgan that there was something that was going to happen there was some computer contractual problems as well that left j.p. morgan exposed so at the end of the day the firm was picked up for ten dollars a share and they got that deal done in may a couple of months later you know so if. by any such comparison it is one of the great steals of. of buy on wall street probably in history right and then of course

j.p. morgan after acquiring those assets for less than pennies on the dollar they turned around and got a multi hundred billion dollars bailout fund that american taxpayer so fantastic for jamie guy and again another legendary scam star clarify some of the points there going back to the one nine hundred ninety nine and a long time capital management scandal when that had fun collapsed and wall street came together to bail it out with this huge multi-billion dollar bailout one firm did not participate and there was a stigma attached to that firm was that bear stearns or lehmann it was actually both. lehman only because their every firm on the street was told by the president of the new york fed if they all had to kick in three hundred million dollars per to bail out long term capital management what ultimately happened was that lehman only kicked in one hundred million and bear pretty much told the fed to take a hike between basically sold bear stearns is really a vendor cologne term capital they cleared all of long term capital trades and you

know he didn't see why he needed to kick in money to see if this firm and in fact of course he didn't you know and that's really when when long term capital collapsed in ninety eight that was really want to turn too big to fail was coined and it certainly set off a huge moral hazard problem for wall street that we saw head again in zero eight on a massive scale and so you know there are certainly a lot of parallels between what happened in two thousand and eight and what happened on a much smaller scale in one thousand nine hundred eight with long term capital management all right so let's talk about what's happening now in the criminal proceedings and lawsuits that have been launched against best earns j.p. morgan since the collapse terry bull who we follow on the show she's got a guest on ties the record you worked on details that are leading to a lawsuit can you give us some details and updates on that i worked with after terri who's just been a huge fan of the film for since they want and done a lot of really. great reporting on this subject surrounding bear stearns and these

other banks after she wrote an initial article in the atlantic i was contacted by a law firm who is bringing an action on behalf of some of them on a line insurers the biggest thing that's just come out is the f h f a's lawsuit civil suit which was released this past friday which details actually individual defendants at bear stearns all of whom were running their mortgage operations that are now in very high paying jobs at other firms tom merino at allied bank jeffrey hirsch lives are at goldman sachs these guys who have landed in big jobs at other places so and although this is a civil suit not a criminal procedure proceeding the word i hear is that based on the outcome of these proceedings you know some indictments are being bandied about and talk about so you know i think that after you know certainly the justice department lost the case against. the and his co-manager of the hedge funds at bear stearns where they were acquitted on nine counts i think they have they've really been going to school

on how exactly to prosecute these people for the malfeasance that they participated in and you know i'm hopeful that some of these people you know pay for what they did because certainly the last e-mail documentation as well as i witness information apparently more than thirty whistleblowers have come out in some of these suits to describe the incredible level of fraud and malfeasance that was going on both on the factory floor as a mortgage operation that really went all the way to the top going to limit their neck verbinski thanks so much for being on the kaiser report thanks for having me that's all right that's going to do it for this edition of the kaiser report with me nice to as and stacy herbert and i thank my guests it want to send me an e-mail please do so i can report an artsy t.v. are you and i stand as a blast as a saying. mission

free. education free in-store three. three. three. three. revolt

against libby your story your media project real gun r t v dot com. libyan rebels continue to attack the few remaining strongholds of colonel gadhafi they are under a shield of nato airstrikes dances around his insensitive things in the sun like the killing of some human minds is that some. dead zone for tourists ukraine debates whether a ban on trips to the contaminated area around should not all should be lifted amid allegations they will find a lot of people but it's too cold. and stormy seas in europe a very shaky economy germany it's had its to calm fears over greece's potential default by urging members of the year as him to stick together as if he turns to the aryans for help.

everyone well can see this is the life from moscow nato airstrikes of hits the remaining strongholds of evil are less in libya helping rebels to attack to kill the oil tran in the east announces the leader of the opposition in his first speech since the colonel was ousted libyans to strongly for a civil a democratic state based on moderate islam meanwhile on this international has called on the country's new off origins prevent human rights abuses accusing bo. sides of the conflicts of violence now concern the groans over the humanitarian situation in libya that seen over two thousand six hundred killed since the uprising began r.t. where for national has been a talking to the people of tripoli about the results of their revolution.

it's after free tripoli just can't stop chanting to celebrate the birth of the new leader. all reminders of a recently overthrown dictatorship are suppressed what used to bring nightmares to some for decades is now a cause for law to. shift to for his job early here we call him because his hair is so long and he doesn't cut it it's ugly actually but some out smiling believe in the gadhafi freedom is nothing with iran as a crime has been the arrest of three times in the last two weeks rebels and target is him and took his documents the reason the twenty seven year old copilot says is his family's ties with gadhafi his regime we cover his face and change his name in supposedly free libya this man is afraid of being thrown to jail again or even killed and you can see a bug was the order of the right frequency aboard

a boat was of water under water could be. what we are talking about democracy this is not democracy a crime says libya didn't get rid of a dictatorship only fell into another one of the rebels' weapons in a city where the gun has become a common accessory just like a cell phone and where one can only cross the town's numerous checkpoints with an obligatory a large part of the winners this is a reality not hard to believe. know everybody we are happy we are free them their fears do run away this is not true believe me because they are fear. toward return back to tripoli you see the same people same people same person with you they are supporting a. revolution can very much hope that which comes after news is often different. those who drove egypt's recalled this year was two of the streets this week and

seven months after toppling president mubarak angry at the like of progress on the reforms future too is still far from clear the post gadhafi libyan capital has been the scene of euphoria with celebrate three gunfire and singing right here around the clock for more than a fortnight already by all parties however some believe there could be serious hangover after wards in the form of retribution and uncertainty as to how the future country will pick up and. reason i asked see tripoli libya. well the thousands of armed rebels across libya have become a novel concern for the new leadership as it seeks to establish order base it will be showing an interview with dr johnson thomas a former u.n. expert to explain what needs to be done to stop the flow of weapons but he's a pretty. old girl start off by being legally married until you can be sold but at some point the guns the cause the problems and. and because of libya the

concerns as you know that a lot of the rebels were until fairly recently also regarded as being in league with al-qaeda in some cases so there are some orders of what they might do with that a certain you know organization for what they call courage of the market which would it's always a taking an interest in what happens in libya and once you get support for the revolution of any sort but then you turn to boost some of the individuals within one of the troubles is that. you knew where you could have a society where the good isn't as if it's ritualised respect the rule of law and majority of gun crimes happen not because people want to hold an illegal weapon but because they don't have any trust in someone else looking after them so in this libyan transitional national council very quickly establish the trust the impartial independent police force because main cities but if you can tripoli there

will be a temptation on people to keep guns for their own defense but not the reasons the insurgents are going to go on to something which we shouldn't be used. to. the u.s. embassy and nato headquarters in the afghan capital under heavy attack by taliban fighters let me bring claims that staging a coordinated strike on people's government district which is next here area and search and stormed in an occupied an empty building. from which they're firing guns and rocket propelled grenades suicide bombers involved in the assault and afghan security forces and foreign troops operating on its resistance and the number of casualties is all that clear this concert's week solved an attack on the british counsel's office in the same districts after twelve people dead the taliban has been stepping up its of violence across the country since they too began handing power over to afghan forces in july we more on this developing story as we get it

bogs in wall. it's a tough periods of financial crisis the u.s. is desperate for cash but despite the strait and times there are parts of the country where the green shoots of piracy continue to grow as aussies that rate of what not life runs out the u.s. policy of incarceration makes for a private prison industry buccaneer it's. america's financial crisis has been something of an unsociable monster swallowing up millions of jobs homes and businesses throughout the nation yet this ongoing economic armageddon one industry has remained recession proof. private prisons. with more than two point three million people behind bars the united states trumps china russia and the rest of the world in both the number and percentage of people doing time where it falls short though is incapable of containing such a large population it's

a political dilemma turned cash cow for dozens of corporations creaming profits off punishment other persons make money off of course rouge and more people they lock up on the longer the more money they make so they have the same perverse incentive to expand our justice system and increase our number of people or our number of citizens who are behind bars because it increases their profit margin. the profitability of private jails depends on the prison population continuing to go up the rate of incarceration in the us has quadrupled since the eighty's when america's war on drugs are shared in the three strikes policy which ties judges to mandatory minimum sentencing even for nonviolent offenders since the late eighty's and into the ninety's and now today we see a turn away from that rehabilitated model so across the country prison programming is cut rehabilitation is being cut there's less opportunities for education to gain work skills and instead there's just this drive towards isolation towards

punishment private prison companies are paid between forty five and one hundred thirty dollars a day per detainee rates for juveniles women and immigrants could be higher while public prisons are accountable to the public private ones answer only to shareholders and are not subject to external scrutiny that means many private contractors face few consequences for the poor or even inhumane treatment of detainees and we just see more and more isolation sensory deprivation and prisoners who literally never interact with human beings will. come. into the facility they would be a sign out front with their stock price to let them know how the company was doing corrections corporation of america and geo group are the two largest private prison companies with combined revenues of two point nine billion dollars last year but

critics say they've been using that financial clout to line their own pockets even further encouraging politicians to keep going with the heavy handed sentencing program by launching an influential lobby campaign in the corridors of power lobbying in an order to influence public officials only a small part of the part of an industry. she policy check and others include campaign donations so the companies make hundreds of thousands of dollars in their nations and politicians nationwide both on the federal and state levels with most states and the federal government currently operating under record deficits and budget cuts private prison companies are pitching their facilities as lower cost alternatives and while most americans continue struggling during this economic downturn now's incarceration may grow even more profitable in upper nile artsy new york. so i have

a few of those sound design the sightseeing adventurous traveler as well as hundred syrians of a fusion zone twenty five years off for chernobyl nuclear power lost the government says the tools are eco. and move who are all welcoming new billboard in times square accuses a round of hawthorn with al qaeda just iranian president's jew in new york for the u.n. general assembly. ok

let's take a look at some other world news service hour and turkey's prime minister is in cairo to offer to the post mubarak egypt is addressing the arab league ministers. and it will also visit other arab states whose leaders were recently ousted the trip comes at a time of strained relations with israel and its refusal to apologize for the raid on a gaza aid flotilla that killed nine turkish activists ties between a jewish state in cairo are strangers who authorized his rounds out the israeli embassy or mistakenly killing five policemen in buda crossfire last month. gunmen have ambushed a school bus in the pakistani city of peshawar killing four children and the driver the bus was taking the nine to fourteen year old students home with gunman strug

there's been no claims responsibility for the attack so far northwest and darkest on is torn between a government support of tribal armies and islamist militants with links to al qaeda who carried out hundreds of attacks against civilians in recent years. sex abuse victims of submitters crimes the international criminal court calling for pope benedict the sixteenth and top cardinals to be investigated for possible crimes against humanity again officials are being accused of negligence and seek vising of police and turning a blind eye it is actual crimes against children are the individual cases are brought each year but the courts have never before opened a single formal investigation into the catholic church how germany has called on euro zone members to stick together aaron attempt to settle nerves a bit of potential greek default the chancellor says the greece must stay aboard the block to avoid causing a domino or. right as statements came out of fears of greece declaring bankruptcy

calls the shots for the global markets on monday it was triggered by reports that germany was preparing for greece to leave the euro zone has been struggling to bring its debt crisis on hold despite stringent austerity measures financial journalist to make you cough you know says the reason a way out. but there are different ways that. the european central bank and the e.u. could go about dealing with a default of greece or an exit of greece portugal or some of the peripheral countries they could break the euro into two different types of euro but the fact that no one is willing to talk about that option openly and kind of admitted that's where we are with an unsustainable debt like greece has and now the fact that you have a country of the size of italy which is no longer really able to access the markets the way there actually is in the for the markets but the e.c.b. isn't there buying spanish that so the fact that you have these countries on able to issue debt paper on their own is is frightening for the european union for the

eurozone there is no real exit mechanism from the euro if you're part of the year and you are part of it supposedly for life ok and so we saw how chaotic it was in argentina. default on its debt and exit of the dollar in the case of greece it's not even a peg they've given up their currency their french banks that are that are potentially on the hook with a lot of who's exposed to those french banks that whose exposed the banks very close the french banks a lot of the banks prefer an environment like they've had now which is if we can lever up as much as we want doesn't matter and if we lose we just get bailed out there structurally adjusted their business model and their profit making mechanism to this new environment which has been perpetual bailouts that we've seen since nine hundred eighty. one in the meantime by its debt crisis it's time to sign up for possible rescue so level talks were held in beijing after claims that.

treasury refused to give out details but it's understood that china was offered the chance of. the time governments who believe. that changes. government spending cuts. rates the lower house of parliament that seems to have its i went day. in dark one of the most exotic tourist destinations twenty five years after the chernobyl nuclear disaster the alienation zone around the plant seems to be pulling people in and not plugging away at the government recently bound excursions to the zone and it allegations they were providing a healthy profits for officials although as artists and it's here to show up at the area could still see. these cars were once heavily affected by nuclear radiation now the radiation for a different reason part of an exhibition in kiev did it get it to the clear out of the one nine hundred eighty six chernobyl fallout over the years the chernobyl

museum in ukraine's capital kiev has become one of the top tourist attractions especially in april this year when the world war of the twenty fifth anniversary of the disaster but for those craving for the first hand course the book a lived experience looking at the exhibition here has not been enough. and there is an adventurous alternative you can terminate at zone around children or good selves or it was declared stories have been floor can hear more than ten thousand of them each year that's right forbes magazine named the dead zone one of the world's most exotic tourist destinations. alexander a former resident of the goldstone of previous has been organizing these stories for several years he told us the visitors are always fascinated by what they see although all their motivations for making the trip have always varied. but. you people have different reasons. some want to see what an apocalypse could look

like. someone to feel the history. of their childhood like the atmosphere of the soviet union has been preserved but for me it's more important not why they come here but what effect it has on them. but since june this radioactive tourism has been suspended the prosecutor general's office conducted checks and ruled that the emergencies ministry had broken the law with these trips as well as making an unhealthy profit every tourist to the zone has been playing around a hundred u.s. dollars to do so equating to a multi-million dollar revenue every year. we urge the ministry to inform the governments of every dollar earned by these trips we know that a lot of money has been made was that we have no idea in whose pockets it ended up why not put the money into the budget and use it to solve problems like. the ministry is defined it says it stuck by the law it claims these troops are

a vital way of educating the world on how to avoid such disasters which are not bill's own will never again be inhabited but experts say it could still serve other purposes cheaper. due to decontamination procedures almost toppled there has acceptable levels of radiation that's why we can use this large spaces to build solar and wind power stations and even grow be a fuel there the emergencies ministry has now filed a lawsuit in a bid to resume tours through the contaminated zone and the court is expected to start hearings in mid september ukraine's thirty kilometer nuclear wasteland will remain closed to the public until then what the debate remains very much of. the r.t. reporting from kiev and chernobyl in ukraine. now that may be. frosty reception for iranian president. in new york this september as he plans to attend the sixty six u.n.

a general assembly next week a massive billboard in times square accuses iran of allying with. a huge poster was put out by the united against nuclear iran group which opposes trans nuclear plans some americans are also angry that even allowed to travel to the u.s. after his recent comments accusing washington of using the nine eleven tragedy to justify its hands on iraq and afghanistan but even even to the independents she think tank told r.t. that the hostility towards around only increases its desire for nuclear weapons. if you remember after all nine eleven iran helped the united states apprehensive malka people and provided intelligence on them because remember. islamised government is different than the al qaeda which is sunni and the iranian government is shear in the qaeda is hostile to the billboard for earlier demon.