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CNN Live At Daybreak

America's New War: War on the Financial Markets

Aired September 19, 2001 - 08:44   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
PAULA ZAUN, CNN ANCHOR: Right now, I'd like to turn my attention to Andy Serwer, who has been look into a part of the puzzle that I think might add some really critical information.

You are, of course, with "Fortune" magazine, and Zbigniew Brzezinski was on the air earlier this morning saying that perhaps following the money trail is the best way to figure out who is responsible for this attack and what other cell groups are still operating out there?

ANDREW SERWER, "FORTUNE" MAGAZINE: Absolutely. I think that's a critically important point, Paula. We're talking about America's new war, and I think one of those fronts is going to be the war on the capital markets, the war on the financial market. There has been some speculation swirling about trading in certain securities that before the attack by those perhaps who had advanced warning, there is investigations into those, nothing concrete has been discovered there so far.

But I think perhaps more importantly is what you are alluding to, which has to do with secret bank accounts in countries that allow very secretive banking rules to let people move money in and out of these accounts very freely. We're talking about the Cayman Island, even Switzerland, Monaco, the Bahamas. And Mr. Brzezinski alluded also, the United States, that there might be more regulation, more scrutiny brought to bear here, and I think that's an important point.

ZAUN: That was the point I was most shocked to hear him say. I mean, everybody assumed there would be an examination of these other private banks that you are talking about, but he made it very clear that the United States banks should be under review as well?

SERWER: I think that's going to happen, and the reason is because our financial markets and our banking institution right now are so complex, there is so much money flowing in and out of these accounts that regulators I think are simply overwhelmed and it's very difficult for them to keep track. All it takes is a concerted effort by someone in the third world or by some party to move money around using different accounts in the grand (UNINTELLIGIBLE) to a bank in the United States, and they can pretty much move money around wherever they want to.

ZAUN: Is it pretty easy to track down these transactions? They are all electronically recorded? SERWER: It is difficult. It will involve an increased effort by U.S. regulators. It will mean more money, more manpower. Again, this involves the whole security step-up that we talked about in this country with airports. This is another area where we are really going to see an increased amount of scrutiny, money and regulation, I believe.

ZAUN: All right, Andy Serwer, thanks so much. See you again a little bit later on this morning.

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