It just doesnt work, or it collapses, its very, very important to us that we are, were solid. Woodruff those are just some of the stories were covering on tonights pbs newshour. Major funding for the pbs newshour has been provided by moving our economy for 160 years. Bnsf, the engine that connects us. And the william and flora hewlett foundation, helping people build immeasurably better lives. And with the ongoing support of these institutions and. This program was made possible by the corporation for public broadcasting. And by contributions to your pbs station from viewers like you. Thank you. Woodruff secretary of state john kerry and his counterpart from iran worked in vienna today, trying to find a breakthrough in talks on Irans Nuclear program. Kerry met oneonone with Iranian Foreign minister Moahmmed Javad Zarif twice during the day, for several hours. There was no indication of any real progress. The u. S. And five other nations are trying to reach an agreement with tehran before a july 20th deadline. Woodruff a full audit of afghanistans president ial run off begins this week, under a deal brokered by secretary kerry over the weekend. Last months election was marred by allegations of fraud. Now, the United Nations will oversee the review of some eight million ballots. The rival candidates, Abdullah Abdullah and ashraf ghani, have agreed to accept the outcome of the new count. In nigeria, a new video surfaced from the leader of the boko haram militants, the group that kidnapped 200 school girls in april. In it, the groups leader claims responsibility for attacks that the government never reported. Refinery, yes. You people try to hide it. A woman sent by allah bombed the refinery. You said it was an ordinary fire . I ordered the bomb to be exploded and you say its fire. If you hide it, you cannot hide from allah. Woodruff the militant leader also mocked president Goodluck Jonathan and the outcry over the girls kidnapping. He offered again to trade them for fighters held in nigerian jails. The u. N. Security council has approved sending humanitarian aid to parts of syria held by rebels, even if the Syrian Government objects. Todays vote followed increasingly dire reports about the suffering of civilians. Currently, all aid has to go through damascus, and the great majority winds up in government controlled areas. U. S. Army Sergeant Bowe bergdahl returned to active duty today, after spending nearly five years as a taliban prisoner in afghanistan. He was assigned to administrative duties in san antonio, texas, where hes had counseling and treatment for the past month. The army is still investigating allegations that bergdahl was captured after he deserted. The wrecked italian cruise liner Costa Concordia was painstakingly refloated today, off the tuscan coast. The daylong operation took place more than two years after the vessel struck rocks and capsized, leaving 32 people dead. Sally biddulph of independent Television News reports on todays exercise. Reporter with each passing hour, a few more cabins of the Costa Concordia are revealed. Almost imperceptibly, the huge vessel starts to float again in the biggest salvage operation in history. Today the ship is being slowly lifted from the man made steel platform constructed beneath her by pumping air into the huge metal containers welded to her sides. She will then need to be fully checked before being towed by tugs to deeper water. There, under anchor, more air will be pumped into the containers to raise her to a fully floating position. The luxury cruise liner went down off the coast of tuscany two and half years ago. Shed sailed too close to the island of gigio where rocks ripped a hole in her hull. 32 people died in the ensuing chaos as the ship capsized. The concordias captain, Francesco Schettino is currently on trial for what happened. Until last september the vessel rested unmoved on its side until salvage experts righted her in a huge engineering operation. The process to now float her is an even bigger challenge, her final journey will be to the port of genoa where shell be stripped down and scrapped at the end of this month. Woodruff the ships captain is charged with manslaughter and with being among the first to abandon ship. Hes currently on trial. He announced this evening that he would become leader of the house of commons. The surprise move is part of a Cabinet Reshuffle that conservative Prime MinisterDavid Cameron plans to explain tomorrow. In the church of england, england, lay leaders voted today to let women become bishops. The measure had the support of the archbishop of canterbury and of british Prime MinisterDavid Cameron. Two years ago, a similar measure failed to get the required two thirds majority. Wall street got the week off to a strong start. The Dow Jones Industrial average gained more than 111 points to close at 17,055. The nasdaq rose nearly 25 points to close at 4,440. And the s p 500 added nine, to finish at 1,977. Still to come on the newshour citigroups penalty for selling risky mortgage securities; martin indyk on the recurring chaos in the mideast; fighting flares along the russiaukraine border; john oliver on turning the news into comedy; reflecting on the impact of the 2014 world cup; and, remembering nobelprize winning novelist Nadine Gordimer who died today. Woodruff we should start praying, i would not be surprised if half of these loans went down. Thats what a trader at citigroup wrote in an email in 2007, after reviewing thousands of mortgages bought and sold by the bank. Today, the Justice Department cited those very words as it announced a 7 billion settlement with the bank. The government said citi committed egregious misconduct in the leadup to the financial crisis. Of the 7 billion, citigroup will pay 4 billion to the Justice Department. More than 2. 5 billion is set aside for whats described as consumer relief. Tony west is associate attorney general for the Justice Department, and the governments lead negotiator in this case. We welcome you to the program. Thank you so much. So lay ou woodruff so lay ous what was this egregious conduct and how many people at citigroup were engaged . In a nutshell, what we were talking about is citigroup packaged securities, Mortgage Loans into securities which they sold to investors. What they didnt tell investors was what the actual quality of the loans were. So you had these mortgage bond deals that had quality that was far less than what citi was representing to investors that they were. Woodruff and how many people knew about this, and did the knowledge go all the way to the top . Well, a number of bankers certainly knew about it. In fact, we know from the evidence that bankers were warned that the quality of the loans they were packaging into these securities was not what they were telling investors they were, but they ignored those warning signs, they ignored their due diligence. In terms of how far up that went, i think certainly enough people in the country knew and enough bankers knew that we felt that we could demand a very high and, in fact, an historically high penalty from citigroup. Woodruff so 7 billion, as we were saying, 4 billion going to just dis. What does justice do with the money . That money is a civil penalty and goes to the United States treasury. Part of that money will go to Fund Additional cases in which the government is going to try to recover funds that have been lost to fraud and waste and abuse on behalf of the taxpayers. Theres another 500 million that will go to five states around the country to help to replenish some of the losses that Pension Funds and other state entities suffered because of this. Woodruff and then the 2. 5 billion set aside for consumer relief, who does that go to . That goes to consumers. I think one of the lessons that we have learned from the financial crisis is that it just wasnt investors who were hurt in this debacle. We know that there are homeowners on main street who really suffered because of the conduct that citi and other Financial Institutions engaged in, so, as part of any resolution, we want to make sure were bringing meaningful relief to those individuals. Woodruff im sure you know there are consumer advocates out there who are saying its too little too late. We saw today a public citizen. I just want to read a comment, they said no individuals are being held to account. They said, the bank is not being charged with any criminal activity. They say the corporation faces no review of its bank charter, business continues in its offices. What do you say to those comments . I would say a couple of things. First, this is a civil resolution. Its not a criminal resolution. The very terms of the Settlement Agreement we have not written off any ability to pursue criminal charges, should the evidence merit that. Woodruff so that could still come . Thats always a possibility out there and something specifically carved out of this resolution. The second thing i would say is that we know, of course, that no one resolution this resolution wont solve all the problems created by the financial crisis, but it is an important step to rectifying some of the harm. I think when you talk about the principle reduction that we have, the rate reduction, refinancing features of this consumer relief, when you talk about the Affordable Housing thats a part of this consumer relief, i think the potential here is that there will be hundreds of thousands of homeowners and followers who will benefit from these provisions. Woodruff but they may not be individuals who were affected in the original instances . I think one of the things weve seen is there were a number of individuals who have been affected. You didnt just have to be an investor in order to be hurt by what happened as a result of the conduct of wall street, so its our belief a lot of these measurers will have victims, often faceless, nameless victims, but victims nonetheless of the financial crisis. Woodruff another critic, dennis callaher of the bert markets group, he said, that amount, the 7 billion, is meaningless without the disclosure of the Key Information about how many hundreds of billions of dollars citigroup made, how many tens of billions investors lost, how many billions in bonuses were pocketed, which investors were involved and what positions they now have with the bank. Again, i think it would be a mistake not to think these are meaningful resolutions. What were talking about is an historically high civil penalty, 4 billion. In fact, its twice as much as jp morgan paid and, in addition, were talking about really compensating a number of investors who were lost if they were state agencies, Pension Funds, charities and the like, and i think we really cant overlook the potential power of the consumer relief provisions, the power that that has to help rectify the harm that occurred. You know, again, its not a panacea, but it is an important component to trying to restore some of the damage that has been caused by not only the conduct that we were talking about here in the citi case but other Financial Institutions as well i. Quickly again on the possibility of criminal charges, is that something justices actively are looking at . Yes, and i dont want to speak in connection with any particular financial institution, so let me just say, generally, we are looking at all aspects. Understand, the civil resolution is only one tool, but wherever the evidence leads, wherever the facts lead, we will not hesitate, if that is criminal, to bring those charges. Woodruff let me just bring a comment from the other side of the ledger and that is the banks. I know there were several reports that quoted top folks at citi saying, you know, they really had, as they put it, a relatively smaller share of the market, that they shouldnt be held as accountable as some other large institutions should have been. What do you say to that . Well, i think the fact will there are some people who say we were too tough and others saying we were too soft, i think that probably means we were in the right place right in the middle. But this market share argument, i know a number of people talked about citi add vansd, the fact is resolutions are driven by the facts and evidence of any given matter in any given case. Its the individual conduct. Its the conduct of an institution that will really determine how we resolve these cases and, so, im not saying market share isnt relevant, but the fact is it cannot trump the actual evidence of misconduct and, in this case, given the size of the fine, it tid not. Woodruff tony west, associate attorney general. Thanks for talking with us. Thanks, judy. Good to be with you. Woodruff now, as the seven dayold battle between israel and hamas rages on, we turn to a newsmaker interview with a man who tried hard to avert this latest flareup. Newshour chief Foreign Affairs correspondent Margaret Warner spoke today with martin indyk, who just resigned as president obamas special envoy for israelipalestinian negotiations. Their conversation came as rockets rained on israel and the Palestinian Death toll from israeli airstrikes topped 175. Warner gaza shook with air strikes and smoke smudged the skyline this morning, as palestinians inspected the damage. At the same time, hamas rockets sliced through the air over israel, as air raid sirens blared and people ran for cover. In the past week, israels military has carried out more than 1,300 airstrikes, while hamas has fired nearly 1,000 rockets. And today, something new hamas launched a drone aircraft over israels southern coastline, and released this video, apparently showing missiles under its wings. Israels military shot down the drone, but hamas said the launch demonstrates its growing power. translated using drones is new in this conflict and it is another component the Palestinian Resistance is using to fight the war against the israeli occupation. This is an indication that the resistance has only used a limited amount of its military weaponry against the relentless zionist enemy. Warner on sunday, israeli Prime MinisterBenjamin Netanyahu again defended the assault on gaza, and insisted the blame for what is happening lies squarely with hamas. You know heres the difference between us, were using Missile Defense to protect our civilians and theyre using their civilians to protect their missiles. Thats basically the difference. Warner meanwhile, three israeli jews, including two minors, confessed today to abducting and burning a palestinian boy alive. An apparent revenge killing for the kidnapping and murder of three israeli teenagers last month. Now, the two sides are locked in the worst fighting in almost two years, despite worldwide calls for a cease fire. Have made little headway. Its a far cry from u. S. Hopes during the obama administrations ninemonth push for a comprehensive peace deal that broke down at the end of april. This was secretary of state john kerry, just after the deadline passed. We believe the best thing to do right now is pause, take a hard look at these things and find out what is possible and what is not possible in the days ahead. Warner martin indyk, a former ambassador to israel and state department official, was the u. S. Special envoy for the negotiations. Today, he returned to his job as Vice President and director of the Foreign Policy program at the Brookings Institution in washington. I spoke with him this morning, at brookings. Thank you very having us. Thanks. Warner after these decades of peace making efforts including your own these eruptions between the israelis and palestinians seem to continue more frequently an ferociously. Why is that . I think its something secretary kerry was warning about when he started the whole effort to try to change the dynamic to a positive one which could lead to a resolution to the israeliPalestinian Conflict, precisely nature pulse a vacuum particularly in the palestinian arena and if youre not moving forward the vacuum gets filled by very negative dynamic and extremists who basically want to pursue the conflict, so thats what were witnessing now. So its horrendous when it happens, but its kind of indication of the chronic nature of the conflict that we were trying to break out of. Warner what will it take to end this current conflict . Well, cease fire. Thats the most important thing. That has to happen as soon as possible. And secretary kerry and president obamas support is now engaged in that effort and, hopefully, it will be possible to get that in place. I dont think the israelis want to go the next step of a Ground Invasion of gaza because the big question then is who are they in favor of . They already pulled out unilaterally but got the rockets in return, so they would be willing to stop as soon as hamas is ready to stop the rocket fire, and thats the focus of the activity at the moment. Warner so why has israel masked all its tanks on the border and brought all the troops to the border . One thing hamas has to understand is there are grave consequences if they dont stop the rocket fire. Thats the signal theyre trying to send. But Prime Minister netanyahu is very cautious when it comes to launching wars and i think there is a general understanding on the part of the public