Posted on 06/27/2013 3:57:29 PM PDT by lbryce
Former New Jersey governor and senator Jon Corzine will face charges over the collapse of financial firm MF Global, regulators said Thursday.
The Commodity Futures Trading Commission (CFTC) announced that it had filed charges against Corzine and was seeking to impose a trading ban on him.
The charges would ban Corzine and Edith O'Brien, the former assistant treasurer for the firm, from the financial industry.
The CFTC asserts that, as head of the firm, Corzine was responsible for MF Global's insufficient controls and failed to properly supervise actions the firm took. The result was a failure to prevent "unlawful uses of customer money," according to the regulators.
(Excerpt) Read more at thehill.com ...
It's shocking that Corzine has already gotten away with having committed all sorts of felonious criminality and now will only be liable for civil charges. Here was former Senator/Governor, head of Goldman Sachs, a rather impeccable resume yet took absolutely no resr\triction legal or otherwise running MF into the ground violating all sorts of federal laws taking clients' money to make bets for his firm on the markets, in one instance doubling-down on a losing transaction.
He's rich, very rich, so let the money come out of his hide, not the least of which is that reputation that has been impugned and sullied. But in the circles her travels in it doesn't mean hee won't be back in some power position.
Corzine is a good Democrat. I was wondering when he would face any legal sanctions or punishment for what he did.
Yeah, right. When pigs fly first class.. alongside Alex baldwin
obama to award him congressional medal of honour and full pardon in, 3...2...1
He’ll never see the inside of a jail.
Wall St. lawsuits always end up being handled in the following way when government regulators actually go through the motion of doing their job:
1) The Wall St. perp gets in writing that they were in no way even remotely at fault or that they did anything wrong.
2) The Wall St. perp peels a few bills of the giant wad of stolen money and hands it back to the government as part of the settlement.
3) The government claims victory and that the public can trust them to watch over Wall St.
4) The Wall St. perp peels a few more bills of the giant wad of stolen money and makes sure to fund the political careers of those who will continue business as usual.
5) The politicians appoint the Wall St. perp to run the government Treasury department and the privately held Federal reserve as reward for item 4.
6) The new heads of the Treasury department and FED make sure that regulators never hold anyone on Wall St. accountable.
7) Repeat the cycle and rinse.
About time, not that he’ll suffer much. The pr*ck should be in prison.
You think he only stole money from grandma and grandpa? I’m sure there was probably funds from some less than reputable sources that were stolen as well. The guy is probably lucky to be alive.
And “our Liz” was seen doing back flip-flops down 5th avenue..
If I’m reading this right....this is just a slap on the wrist. He’ll still walk with his fortune intact.
I don’t think they’ll ever be criminal charges due to a ruling by the 7th court. It basically gave the power for fund managers to use investor’s accounts as they say fit.
YOU HAVE NO PROTECTION ONCE YOU’RE IN A BROKERAGE HOUSE.
MF Global got into a scheme of backing EU debt bonds. Corzine and crew leveraged ALL shareholder accounts as collateral (even the ones who weren’t on the speculative side) to the hilt. When the deal went through, and margin calls were announced, MF Global was wiped out to the tune of 1.6 Billion.
At that point, all accounts were FROZEN, brokers (who had access to buy/sell/trade MF accounts) at the Chicago Board of Trade were PHYSICALLY REMOVED thereby preventing them from helping account holders liquidate their accounts. It was outright theft.
The only ones who should of been on the margin call were the board members and those who were in the active speculative side....NOT the general shareholder accounts or those not actively engaged (simple balance statement accounts). IT WAS OUTRIGHT THEFT AND THEY GOT AWAY WITH IT.
But because he is a democrat with connections he faces no criminal charges......
Count me as really surprised there is even a mention of the possibility.
Civil charges. If found guilty, he’ll no longer be allowed to trade in the futures market. Big deal. He has enough money so he can afford to retire, or do something else.
Maybe there will be further criminal actions in the future, but I kind of doubt it.
Corzine is Bernie Madoff Jr. Except Madoff was never a corrupt (D) governor who even ran the State of New Jersey into the ground.
This weasel ought to be sharing a cell with Madoff -- but only after being tarred and feathered. Instead -- like Charles Rangel -- he was given time to set up his untold, untouched millions in a Caymans account. Prediction: Corzine serves 20 hours of Community Service and pays a fine of $1,000. Another a travesty of justice for another corrupt, hypocritical Democrat-Communist.
“unlawful uses of customer money”. Although I don’t have the specifics or the legal mind, as I recall when MF was collapsing, the stories I read, said that documents blatantly showed Corzine transferred clients money to the company coffers and then ‘restored’ any and all losses he would incur, which was over a billion dollars — he literally stole the clients money to see that he not only had no losses but remained a billionaire!
‘Unlawful use of customer money by the firm...’
Crazy understatement.
Corzine personally authorized wiring customer out of MF Global, against company policy, sec regulation, and common law. That money movement effectively stole the money of the customers to cover some of the debts of the firm.
Corzine needs to be in jail - NOW!
To make matters worse....clients, who had their money stolen, are now facing “clawback” from the bankruptcy trusties. Their personal assets are now subject to confiscation by bankruptcy court.
“He’ll never see the inside of a jail.”
Maybe that’s the best we could hope for—please see Hotlanta Mike’s response below...makes me feel warm and fuzzy.
Barnhart talks about MF Global in more detail...What Corzine did was bad but what Duffy did (Chicago Mercantile) was worse!
http://www.youtube.com/watch?v=SqKGA8Lmw60
16:50 mark to 21:00
FYI....who gets the benefits of the “clawbacks” and bankruptcy funds? A third party....JP Morgan.
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