Skip to comments.Corzine 'stunned' that MF Global couldn't find missing funds
Posted on 12/08/2011 7:05:09 PM PST by Texas Fossil
As the first former U.S. senator to be subpoenaed by Congress in more than a century, Jon Corzine testified Thursday about the last chaotic days of MF Global, the trading firm that declared bankruptcy under his watch.
Corzine said he was stunned to learn that the firm could not locate hundreds of millions of dollars in client money in the days before the firms collapse, and said he had no idea where the money had gone.
(Excerpt) Read more at latimesblogs.latimes.com ...
The big question is the collateral damage to the world financial institutions. Some of the "too big to Fail" U.S. Banks are very very heavy with derivatives.
Are we being played into the hands of the Globalists? Probably.
He was shocked!-—SHOCKED!— to discover that the funds were missing!
He was shocked!-—SHOCKED!— to discover that the funds were missing!
The elites that rule us really do believe we are incredibly stupid and then something like this comes along to prove them right. How did they get in charge to begin with — we let them.
Corzine has always been recognized as the crook he was and is. The question is: who got the money, and what country will Corzine retire in to enjoy the money he took? Just another product of the criminal left.
Spoken like a corrupt Senator with other people’s money.
Has anyone audited Goldman since he left to see if he had a similar management style there?
Not to worry Jon. I’m sure it will turn up in the form of off-shore bank accounts and anonymous donations to the DNC.
Why is this being investigated by the AG Committee?
This one will not simply “blow over”. It is too big and too brazen. and Corzine is too well connected to avoid being slammed. And this is an election year. Very bad signs.
When investors/traders/commodities hedgers take a loss of 1.2 Billion Dollars it is a serious matter.
Corzine is simply lying.
NOW, who is the real force behind this debacle? My money says the Globalists intend to destroy the Global monetary system so they can gain total control. Sound tinfoil hat? I don’t think so.
Did he look under the couch cushions? Under the mattress? I mean the money has to be somewhere. I found a couple of bucks in change after a party in my couch, did he check his?
"Up until now the assumption has been that the funds missing had been misappropriated by MF Global as it desperately sought to avoid bankruptcy.
Sadly, the truth is likely to be that MF Global took advantage of an asymmetry in brokerage borrowing rules that allow firms to legally use client money to buy assets in their own name - a legal loophole that may mean that MF Global clients never get their money back. "
If, suppose, a lien for about $1.2 billion was placed on his money (and I’m pretty sure that’s most of his net worth) I think he would get a whole lot less stunned and a lot of the corruption surrounding Wall Street would also suddenly become less stunned.
What a liar! They should have put the handcuffs on him right them and there and frogmarched him to jail.
"I never intended"; "I don't know"; "I don't understand"--then how the heck did you amass a fortune of $ 500 million at Goldman Sachs?
This is a Wall St. insider, former Senator, and forme Governor of a State--and he doesn't know how this happened?
He's a plunderer, straight up. Book him, Danno.
MF Global was a commodities trading company. Who unknown to many of their commodities customers were extremely heavy in the derivatives market. (much more speculative) At this point it seems many of the "customers" who lost money were AG producers who hedged their livestock and crops. The fraud was much much bigger than that.
The very instant he said “I DON’T KNOW” they should have put the CUFFS on him and led him away.
I’m even more shocked that anyone with half the sense of Slow Joe would invest their money with him! The guy was, is and will always be a crook with no morals, scruples, ethics, etc.
This is one 1-percenter who needs jail time.
How on earth did this guy get the job? My cat knows more about futures trading than Corzine (and than me, for that matter).
Jon should look in his pockets for the missing money.
I was absolutely ‘stunned’ when I saw the sign placed in front of Corzine at the hearing today. It read “The Honorable Jon G. Corzine”. You can see it in the photo with the article. Really??????
Why isn’t he being perp walked?
...in other unrelated news the obama regime has reached their goal of one billion dollars in campaign funds.
Oh you know a good portion of these scandals have resulted in coffers being filled.
Wasn’t he hired ti provide OVERSIGHT!!!!
I can picture the conversation like this:
“Hey boss, where’s that few hundred million dollars- I thought it was in my wallet- did you have it last?”
Corzine: “Gosh no, I thought you had it~! Boy are our faces red”
Because it involved hedging and speculating in farm commodity prices which is a topic that the AG committee may have purview over.
Somebody oughta check “Bammy’s campaign warchest....
He signed the SarbanesOxley document putting himself on the line for the accuracy of his company’s accounting. The accounting was fraudulent. He either goes to jail or we no longer are a nation of laws.
My son remarked yesterday that the reason Corzine was able to take over MF Global, a company that traces its roots to a sugar trading business started by James Mann in England in 1783, and loot it to death in less than two years was precisely because he knew he could do so and get away with it completely.
I hate to break this to everybody, but Corzine, the connected former senator and governor, the big-time Democrat donor, will not be held responsible for anything, ever. Unless the feds can pin something - anything - on some nondescript underling, nobody will be held responsible. That money is in the wind and everybody knows Corzine stole it.
(shrug) Oh well.
I wonder how long before his children commit suicide because they are Corzines and his wife knows the social POS they have become. People are hurting in America and the Corzine clan thinks it’s real funny.
No Trace of 1200 million MILLION dollars..(1.2 billion) !!!
Anyone that believes that theres no receipts in some form are crazy...
Someone on NRO pointed out that “I have no idea where the money is” is a felony under Sarbanes-Oxley. He should have been frogmarched right out of the Capitol.
In the U.S. what MF Global did was illegal. In the UK probably not. Were the investors aware of the risks? I seriously doubt it.
Many of those who are on the hook are farm commodities producers who hedged their livestock/crops.
Corzine should be in prison until he remembers where the money went. Maybe he could share a cell with Holder who should stay until all the guns are recovered.
Remember where the money is? Not going to happen.
Much of the losses were “off book” entries. Yes there are records, but the question is ownership control of the lost funds.
Huge Scam from day 1.
This is how I see it also.
It already has blown over at democraticunderground. I could not find a single story about this one percenter stealing money from farmers. I thought this is what they were against? Where is the OWS crowd on this?
It’s certainly lucky that he knows where his own funds are.
I'll take (B) for $500, Alex.
If just one person (conscience? desire to be first to go states' evidence?) flips, then Corzine (and his confederates) are toast, n'est ce pas?
A legal loophole in international brokerage regulations means that few, if any, clients of MF Global are likely to get their money back. Although details of the drama are still unfolding, it appears that MF Global and some of its Wall Street counterparts have been actively and aggressively circumventing U.S. securities rules at the expense (quite literally) of their clients.
MF Global's bankruptcy revelations concerning missing client money suggest that funds were not inadvertently misplaced or gobbled up in MFs dying hours, but were instead appropriated as part of a mass Wall St manipulation of brokerage rules that allowed for the wholesale acquisition and sale of client funds through re-hypothecation. A loophole appears to have allowed MF Global, and many others, to use its own clients funds to finance an enormous $6.2 billion Eurozone repo bet.
If anyone thought that you couldnt have your cake and eat it too in the world of finance, MF Global shows how you can have your cake, eat it, eat someone elses cake and then let your clients pick up the bill. Hard cheese for many as their dough goes missing.
Current estimates for the shortfall in MF Global customer funds have now reached $1.2 billion as revelations break that the use of client money appears widespread. Up until now the assumption has been that the funds missing had been misappropriated by MF Global as it desperately sought to avoid bankruptcy.
Sadly, the truth is likely to be that MF Global took advantage of an asymmetry in brokerage borrowing rules that allow firms to legally use client money to buy assets in their own name - a legal loophole that may mean that MF Global clients never get their money back.
(Excerpt) Read more at newsandinsight.thomsonreuters.com ...
Hypothecation is the practice where a borrower pledges collateral to secure a debt. The borrower retains ownership of the collateral, but it is "hypothetically" controlled by the creditor in that he has the right to seize possession if the borrower defaults. A common example occurs when a consumer enters into a mortgage agreement, in which the consumer's house becomes collateral until the mortgage loan is paid off.
The detailed practice and rules regulating hypothecation vary depending on context and on the jurisdiction where it takes place. In the US, the legal right for the creditor to take ownership of the collateral if the debtor defaults is classified as a lien. Rehypothecation is a practice that occurs principally in the financial markets, where a bank or other broker-dealer reuses the collateral pledged by its clients as collateral for its own borrowing. IOW, rehypothecation is institutionalized fraud in which a bank takes your collateral and loses it on one of its own bad loans.
posted on Thursday, December 08, 2011 11:15:50 AM by pabianice
Somehow Soros is connected to MF Global...
Most evidence must by now be shredded or liquidated..
There are so many conspiracys its hard to keep up..
Jon is only surprised that he got caught out so quickly.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.