Skip to comments.Corzine lobbied feds to ease regs (months before stunning collapse of MF Global)
Posted on 11/03/2011 9:55:19 PM PDT by Libloather
Corzine lobbied feds to ease regs
By MARK DECAMBRE and KAJA WHITEHOUSE
Last Updated: 11:42 PM, November 3, 2011
Months before the stunning collapse of MF Global, the embattled brokerage firm mounted a full-court press to compel regulators to allow it to tap customer funds to invest in the kind of dicey sovereign debt that led to its demise.
The lobbying effort was in response to new rules that the Commodity Futures Trading Commission, run by chairman Gary Gensler, was planning to impose on broker-dealers, restricting them from making investments with client money in sovereign debt securities.
Broker-dealers are allowed to reinvest customer funds in securities deemed to be safe in order to earn interest.
With lawsuits and investigations piling up, Corzine has hired white-collar defense lawyer Andrew Levander of Dechert LLP to represent him, WSJ.com reported.
(Excerpt) Read more at nypost.com ...
Tapping customer funds was already going on. So what they were really doing was asking for forgiveness versus asking for permission.
Why did he even bother? It's not as if the regulators were doing the job they are paid to do. These thefts only came to light AFTER the bankruptcy was filed........or is it that the regulators found out about these thefts BEFORE the bancruptcy and did or said NOTHING?