Police in Baton Rouge say they have arrested three people who stole guns with the goal of killing police officers. They are still looking for a fourth suspect in the alleged plot, NPR's Greg Allen reports.

"Police say the thefts were at a Baton Rouge pawn shop early Saturday morning," Greg says. "One person was arrested at the scene. Since then, two others have been arrested and six of the eight stolen handguns have been recovered. Police are still looking for one other man."

A 13-year-old boy is among those arrested, Greg says.

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After an international tribunal invalidated Beijing's claims to the South China Sea, Chinese authorities have declared in no uncertain terms that they will be ignoring the ruling.

The Philippines brought the case to the Permanent Court of Arbitration in The Hague, objecting to China's claims to maritime rights in the disputed waters. The tribunal agreed that China had no legal authority to claim the waters, and was infringing on the sovereign rights of the Philippines.

Donald Trump is firing back at Supreme Court Justice Ruth Bader Ginsburg after she made disparaging comments about him in several media interviews. He tweeted late Tuesday that she "has embarrassed all" with her "very dumb" comments about the candidate. Trump ended his tweet with "Her mind is shot - resign!":

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The unassuming hero of Jonas Karlsson's clever, Kafkaesque parable is the opposite of a malcontent. Despite scant education, a limited social life, and no prospects for success as it is usually defined, he's that rarity, a most happy fella with an amazing ability to content himself with very little. But one day, returning to his barebones flat from his dead-end, part-time job at a video store, he finds an astronomical bill from an entity called W.R.D. He assumes it's a scam. Actually, it is more sinister-- and it forces him to take a good hard look at his life and values.

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Donald Trump picked a military town — Virginia Beach, Va. — to give a speech Monday on how he would go about overhauling the Department of Veterans Affairs if elected.

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Pages

Former MF Global Exec Takes 5th At Hearing

Mar 29, 2012
Originally published on March 29, 2012 11:28 am

A former executive at the center of the meltdown of brokerage firm MF Global appeared before Congress on Wednesday to answer questions from lawmakers. Members of the House Financial Services Committee were hoping assistant treasurer Edith O'Brien would explain the actions of the firm's CEO, ex-New Jersey Gov. Jon Corzine.

O'Brien has recently been at the center of the MF Global scandal because of the role she played in the transfer of $175 million to cover an overdraft. It happened during the hectic last few days before the firm's bankruptcy; lawmakers are trying to determine whether the funds came from customer accounts.

Invoking The Fifth Amendment

Such a move violates federal regulations, which require firms to erect a kind of firewall between their funds and those of their customers. But any hope that O'Brien would talk about what happened evaporated right away.

"On the advice of counsel, I respectfully decline to answer based on my constitutional rights," she said, invoking the Fifth Amendment's protection against self-incrimination.

O'Brien's decision to take the Fifth was a letdown to lawmakers, in part because of an email she wrote to her staff when she authorized the transaction. In the subject heading she wrote, "Per JC's direct instructions," an apparent reference to Corzine.

The email appears to refute claims by the former Democratic senator that he didn't know about the transaction. Rep. Randy Neugebauer, R-Texas, chairman of the subcommittee holding the hearing, dismissed her regretfully.

"I'm disappointed, and because of your answer, because I believe you have important knowledge, and I am hopeful that at some point in time you'll reconsider and come back and testify before this committee," he said.

'Run On The Bank'

With O'Brien gone, the lawmakers focused their questions on three other MF Global executives who had agreed to testify. But none of the three had much to add to what's known.

Chief Financial Officer Henri Steenkamp said that the week before the bankruptcy was a tumultuous time. The firm was being downgraded by ratings agencies and could no longer borrow the money it needed to survive.

"We experienced in those last couple of days significant liquidity stress, what one would call not too dissimilar on the Thursday and Friday as a run on the bank," he said.

Steenkamp said he was deeply saddened by the money the firm's investors lost. But he said that as the global CFO, he wasn't deeply involved in financial transactions originating in the firm's Chicago office. He also said he didn't know about the use of customer funds until it was far too late to do anything about it.

'Billion Dollars Missing'

Christine Serwinski, chief financial officer of the brokerage unit, said she was away on vacation when the meltdown happened. As the crisis intensified, she decided to come back early, but she didn't learn how much money was missing until the last minute.

"I dove into the accounting with my team, believing that this must be an accounting error, because such a large deficit was simply inconceivable to me," she said.

There was the same refrain from general counsel Laurie Ferber, who told the subcommittee, "Obviously there was a terrible failure here of some kind, but what it was I don't know."

By the end of the hearing, the carefully couched words and polite evasions left lawmakers fuming. Rep. Michael Capuano of Massachusetts, one of the few Democrats to take an active role at the hearing, said the testimony reminded him of the time three top Enron executives appeared before the committee.

"I told them exactly what I'm going to tell you. They said, 'OK, none of you did it. Apparently none of you did anything wrong,' but there's a billion dollars missing," Capuano said.

Whatever the truth about MF Global, it seems unlikely to emerge from public hearings. But the investigation is by no means over. All three of the witnesses who testified Wednesday said they had been contacted by the Justice Department, which is now trying to determine what happened.

Copyright 2014 NPR. To see more, visit http://www.npr.org/.

Transcript

DAVID GREENE, HOST:

Now to Congress, where lawmakers are seeking the truth about the brokerage firm MF Global. The company went into financial meltdown last fall.

Yesterday, a former senior MF Global executive appeared on Capitol Hill. Members of the House Financial Services Committee were hoping the former assistant treasurer Edith O'Brien would explain the actions of MF Global's CEO, Jon Corzine.

Here's more from NPR's Jim Zarroli.

JIM ZARROLI, BYLINE: O'Brien has recently been at the center of the MF Global scandal because of the role she played in the transfer of $175 million to cover an overdraft. It happened during the hectic last few days before the firm's bankruptcy, and lawmakers are trying to determine whether the funds came from customer accounts. Such a move would violate federal regulations, which require firms to erect a kind of firewall between their funds and their customers. But any hope that O'Brien would talk about what happened evaporated right away.

(SOUNDBITE OF HEARING)

EDITH O'BRIEN: On the advice of counsel, I respectfully decline to answer based on my constitutional rights.

ZARROLI: O'Brien's decision to take the Fifth was a letdown to lawmakers, in part because of an email she wrote to her staff when she authorized the transaction. In the subject heading she wrote: Per JC's direct instructions - a reference to Corzine. The email appears to refute claims by the former Democratic politician that he didn't know about the transaction. The Republican chairman of the subcommittee holding the hearing, Randy Neugebauer, dismissed her regretfully.

(SOUNDBITE OF HEARING)

REPRESENTATIVE RANDY NEUGEBAUER: I'm disappointed and - because of your answer, but I believe that - because I believe you have important knowledge, and I'm hopeful that maybe at some point in time that you'll reconsider your - and come back and testify before this committee.

ZARROLI: With O'Brien gone, the lawmakers focused their questions on three other MF Global executives who had agreed to testify. But none had much to add to what's known. Chief financial officer Henri Steenkamp said that the week before the bankruptcy was a tumultuous time. The firm was being downgraded by ratings agencies and could no longer borrow the money it needed to survive.

(SOUNDBITE OF HEARING)

HENRI STEENKAMP: And we experienced, you know, in those last couple of days significant liquidity stress, I think what one would call not too dissimilar on the Thursday and Friday as a run on the bank.

ZARROLI: Steenkamp said he was deeply saddened by the money the firm's investors lost. But he said that as the global CFO, he wasn't deeply involved in financial transactions originating in the firm's Chicago office. And he said he didn't know about the use of customer funds until it was far too late to do anything about it. Christine Serwinski, chief financial officer of the brokerage unit, said she was away on vacation when the meltdown happened. As the crisis intensified, she decided to come back early, but she didn't learn how much money was missing until the last minute.

(SOUNDBITE OF HEARING)

CHRISTINE SERWINSKI: I dove into the accounting with my team believing that this must be an accounting error because such a large deficit was simply inconceivably to me.

ZARROLI: There was the same refrain from general counsel Laurie Ferber, who told the subcommittee obviously there was a terrible failure here of some kind, but what it was I don't know. By the end of the hearing, the carefully couched words and polite evasions left lawmakers fuming. Representative Michael Capuano of Massachusetts, one of the few Democrats to take an active role at the hearing, said the testimony reminded him of the time when three top Enron executives appeared before the committee.

REPRESENTATIVE MICHAEL CAPUANO: I told them exactly what I'm going to tell you. They said, OK, none of you did it. Apparently no one did anything wrong, but there's a billion dollars missing.

ZARROLI: Whatever the truth about MF Global, it seems unlikely to emerge from public hearings. But the investigation is by no means over. All three of the witnesses who testified yesterday said they had been contacted by the Justice Department, which is now trying to determine what happened. Jim Zarroli, NPR News. Transcript provided by NPR, Copyright NPR.