Skip to comments.Corzine's Ambition Led to MF Global Demise: Flowers
Posted on 05/22/2014 12:36:16 PM PDT by nickcarraway
Jon Corzine's ambition exceeded what the now-defunct MF Global brokerage could handle, private equity investor J. Christopher Flowers said Tuesday.
"[Corzine] was trying to drive a Volkswagen at 150 miles per hour. And it was just the wrong answer," said the managing director and CEO of J.C. Flowers & Co., which invests in the global financial services industry.
In a wide-ranging interview on CNBC's "Squawk Box," Flowers said he still considers the former senator and New Jersey governor a friend. He and Corzine worked at Goldman Sachs and rose to become stars at the investment bank before branching out. Flowers was instrumental in getting Corzine in 2010 to run MF Global.
But 18 months later, authorities said, about $1.6 billion went missing from customer accounts after the firm improperly used them to try to plug liquidity gaps as it teetered on bankruptcy. Customers eventually received full recovery, though creditors say they have not.
Corzine could not immediately be located for comment.
(Excerpt) Read more at cnbc.com ...
Dinesh D’Souza’s in jail, and this guy isn’t?
All you need to know about how f’d up this country is today.
Jon Corzine lost BILLIONS of his customer’s hard earned money but is still free while Dinesh D’Souza is in danger of being jailed for daring to contribute more than $5000 to a conservative candidate.
Something isn’t morally right here.
(1) As a US Senator, Jon Corzine got legislation passed which benefited an investment made by his "blind trust"---Jon said "he did not know" the law he sponsored benfited him. Flowers was in charge of the trust.
(2) As NJ governor, Jon/C installed G/S pal Brad Abelow as NJ Treasury head --Abelow oversaw all monies that come into NJ. So when Jon and Brad started an investment company, Corzine said "he did not know" that it was illegal for state officials to do so.
(3) As head of MF Global---Jon/C and pal Brad Abelow (an MF Global principal) told Congress "they did not know" what happened to $1.4 billion missing investor money.
(4) When Jon/C sent $5000 to bailout a woman charged w/ stalking, he said "he did not know" what she was in jail for.
And that's how Jon/C and Flowers and Abelow became G/S biggies w/ massive million dollar exit pkgs....they played dumb (/snix).
MFG trustee, Louis Freeh, former FBI director, accused Corzine and other MFG executives of negligent conduct (MFG principals include Corine's G/S cronies---Bradley Abelow---and Christopher Flowers---who oversaw Corzine's "blind trust" while Corzine was a US Senator). The 124-page report leveled its sharpest critique at Corzine, the former MFG chief executive (ex-US Senator and former NJ governor) -snip- Corzine and management knew, or should have known, that these factors were contributing to a precarious liquidity position that ultimately spelled disaster for MF Global, Mr. Freeh wrote. (Excerpt) more at dealbook.nytimes.com ...
DID THEY DO THIS?
Last Dec, a former MF Global employee accused former president Bill Clinton of collecting $50,000 per month through his Teneo advisory firm in the months before MFG careened towards its Halloween filing for Chapter 11 bankruptcy, reports Human Events.
Teneo was hired by MF Globals former CEO Jon S. Corzine to improve his image and to enhance his connections with Clintons political family, said the employee, who asked that his name be withheld because he feared retribution, according to HE. The Teneo contract with MF Global lasted at least five months, the souce said. The board cancelled it after Corzine resigned.
The source, who is no longer associated with MF Global, said Teneo is a dual-track company with one side devoted to merchant and investment banking and the other side set up to provide image and strategy consulting services. Clinton is the chairman of the companys advisory board.
The trustee for investors threatened to sue JPMC bank if they did not return the monies.
Did they mobilize the Bank Secrecy Act?
The Act requires banks to establish, implement and maintain programs designed to detect and report suspicious activity indicative of money laundering and other financial crimes.
The Bank Secrecy Act was enacted to protect the public from harm by identifying and detecting money laundering from criminal enterprises, terrorism, tax evasion or other unlawful activities, the special agent in charge for Internal Revenue Service Criminal Investigation, explained.
L/E needs to examine Corzine, Flowers, Abelow and Clinton's bank accounts
<><> Joint bank accounts might be used to facilitate the transfer of of govt funds. MFG monies may pay for personal and private expenses, credit cards, real estate sunsidies and vehicle purchases.
<><> To cover their tracks, fake invoices might be created to show that money deposited into accounts was being used for legitimate investment purposes.
The scheme might be advanced by issuing phony statements of payments from financial sources that actually covered the transfer of funds for MFG insiders own use.
<><> L/E is directed to get ahold of: (1) copies of MFG checks, (2) wire transfers, (3) account statements, (4) invoices, (5) bills, (6) delivery tickets, (7) correspondence including e-mail, contracts, loan agreements, and, (8) any other books or records. L/E should also explore (a) monies paid to brokers, sub-brokers, (b) family members, (c) mortgage brokers, (d) financial managers, and, (e) real estate agents, brokers, and developers.
<><> L/E should scrutinize MFG bank accounts for suspicious activites: (A) large deposits, (B) funds transferred from one account into another, (C) frequent requests for withdrawals.
And check the quartet's tax returns with a fine-tooth comb---especially entries for "interest income."
J. Christopher Flowers, JC Flowers & Co. founder
Flowers less than lucrative real estate moves are probably salt on the financial wounds he has suffered as of late. After years on Forbes magazines list of the 400 richest Americans, he dropped off the vaunted tally in 2009. By 2011, that same magazine called Flowers once high-flying career a bubble [that] has burst, as his investments in foreign real estate and in ill-fated derivatives broker MF Global tanked his funds.
After working throughout '98 on Goldman's plans to go public, Flowers stepped down just months before the IPO, reportedly unhappy that Goldman's chiefs, Jon Corzine and Hank Paulson, had decided against promoting him to the management committee. Today he operates the fund J.C. Flowers & Co., where he focuses exclusively on buyouts in the financial services sector.