MF Global Trustee Estimates Shortfall Could Be $1.2 Billion+ (double original estimates)

NYTimes ^

[quesney]

The court-appointed trustee overseeing the liquidation of MF Global’s brokerage now estimates that the shortfall in the firm’s customer funds could be more than $1.2 billion, double previous estimates.

[Oldexpat]

Most of the coverage seems to try to delete or minimize the role of the CEO Corzine. They also seem to forget he is a democratic politician and a candidate for Sec Treasury.

[Mr. K]

I dont think they “lost” all of this- It is nice and safe in Obama’s campaign fund.

[silverleaf]

Umm, yeah, like when they floated the name of Jamie Gorelick as possible obama FBI chief

[Kartographer]

I posted this on another thread, but I like to ask it here too. I have always been fascinated by the fact that real life so often on parts of fiction.
So recently I was discussing with a fellow Star Trek fan how much today’s business practices of so many of are largest corporations and too big to fail seem to adhere to The Ferengi Rules Of Acquisition from Star Trek. Here’s a few you be the judge:

5. If you can’t break a contract, bend it
13. Anything worth doing is worth doing for money
14. Anything stolen is pure profit
16. A deal is a deal ... until a better one comes along
23. Never take the last coin, but be sure to get the rest
24. Never ask when you can take
26. The vast majority of the rich in this galaxy did not inherit their wealth; they stole it
28. Morality is always defined by those in power
29. When someone says “It’s not the money,” they’re lying
37. You can always buy back a lost reputation
46. Labor camps are full of people who trusted the wrong person
47. Don’t trust a man wearing a better suit than your own.
51. Never admit a mistake if there’s someone else to blame
53. Sell first; ask questions later
61. Never buy what can be stolen
70. Get the money first, then let the buyers worry about collecting the merchandise
80. If it works, sell it. If it works well, sell it for more. If it doesn’t work, quadruple the price and sell it as an antique (or a derivative)
81. There’s nothing more dangerous than an honest businessman
208. Sometimes the only thing more dangerous than a question is the answer.

[Terry Mross]

DNC Swiss accounts.

[goodnesswins]

I’m thinking more like...tar and feathers...

[silverleaf]

nah, this company took on the idiot Corzine in 2010 and he almost immediately gambled on CDS high risk investments with client money-

“commingled” is the polite term for stealing

Basically under Corzine’s short leadership the investment firm hoovered out money from client accounts, gambled and lost

(I read that Gerald Celente lost the value of his 6-figure precious metals account)

Tyler Durden (ZeroHedge) published an Ann Barnhardt rant last week- excellent

I guess the idiots who knowingly stayed invested in M-F Global thought Corzine’s political connnections were too big to fail

[Pearls Before Swine]

They're now talking to the feds,a nd attemptig to work out plea bargains for themselves. The Feds wan direct testimony linking Corzine to the criminal acts..

If this is true, look at the bright side. Supposing for the moment that Corzine doesn't skate because of his Democratic connections, he's got enough money to actually make good on $500 million of the theft!

[sappy]

Bingo!

[Texas Fossil]

We are now moving at faster than the speed of light? We crossed over to another dimension and are winking out of the space/time continuum? You have just entered the Twilight Zone.

[ken5050]

Would like to try and clear up what happened, at least what I think happened..

MF Global was speculating on soverign debt...and doing so highly leveraged..estimates are 30:1 if not higher.

That means that you can control ( buy) $ ONE billion of debt for about $30 million down. Corzine bet the ranch that Europe would stay solvent..he went long.. If the value of the bonds increase, you make money. If the bonds decline your entire margin balance is wiped out, and you have to post more margin, or they close out your positions.

MF Global got massive margin calls..probabaly from European banks..( if the trades were with US firms, they'd be talking about it already. Corzine thought he was a "master of the universe"..if the trades were closed out, he, and the firm, were finished..so he "borrowed" the customers' $$ to post more margin, and that also was lost...when the bonds declined further..

[NativeNewYorker]

Corzine needs to see the inside of Rikers Island for an extended stay. That’s the only way to prevent future episodes like this.

[TexasCajun]

FOB - Friends of Bari

Corzine was one if Bar's economic advisers and big-time campaign bundlers.

[Qbert]

Obama Flashback: Praises White House ‘Partner’ Jon Corzine ... ‘He Tells It to You Straight!’

http://nation.foxnews.com/president-obama/2011/11/16/obama-flashback-praises-white-house-partner-jon-corzine-he-tells-it-you-straight

[Hoodat]

by stealing money from customer's segregated accounts to make super high risk investments.

Typical leftists. Everything they do involves using other people's money.

[ml/nj]

The loss is the gambler’s equivalent of trying to make up losses at the roulette table with the kid’s college money

Correction: The loss is the gambler’s equivalent of trying to make up losses at the roulette table with other people's kids' college money.

ML/NJ

[SueRae]

I did...and if what she says about this being the tip of the iceberg as to others’ exposure to Corzone’s MF, we have only begun to see the damage.

[crosshairs]

Corzine gets half. The O’Bastard campaign war chest gets the other half.

[ml/nj]

Shortfall Could Be $1.2 Billion+

Note the plus sign. I think when this all broke Ann Barnhardt was using the number $1.6 Billion.

The big question really is: why hasn't Jon Corzine been indicted yet?

ML/NJ

[Hoodat]

One more to add to that list:

1. You can get away with all of this as long as you happen to be a Democrat.