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We Need an MF Global Grand Jury
Posted by Larry Doyle on January 30, 2012 9:53 AM |
I still very much have the “sense on cents” that many on Wall Street and in Washington desperately wish that l’affaire MF Global would just fade away.
Let’s work hard to make sure that does not happen and that the MF Global customers who may NEVER see THEIR money again at least receive some justice in return.
NEVER see THEIR money again? Is that right?
As The Wall Street Journal highlights this morning, Money from MF Global Feared Gone:
Nearly three months after MF Global Holdings Ltd. collapsed, officials hunting for an estimated $1.2 billion in missing customer money increasingly believe that much of it might never be recovered, according to people familiar with the investigation.
As the sprawling probe that includes regulators, criminal and congressional investigators, and court-appointed trustees grinds on, the findings so far suggest that a “significant amount” of the money could have “vaporized” as a result of chaotic trading at MF Global during the week before the company’s Oct. 31 bankruptcy filing, said a person close to the investigation.
Vaporized? What? Bull$&^%!!
Money does not vaporize. Money is misappropriated. Money is stolen. Money is redirected. Money is lost as a result of investment and trading activities BUT money does NOT vaporize.
Many officials now believe certain employees at MF Global dipped into the “customer segregated account” that the New York company was supposed to keep separate from its own assets—and then used the money to meet demands for more collateral or to unfreeze assets at banks and other counterparties as they grew more concerned about their financial exposure to MF Global.
Investigators also are examining other scenarios that have gained traction in recent weeks, such as the possibility that MF Global suffered steep losses on investments made using customer money. Officials investigating the case have looked into whether such investments were appropriate under rules at the time.
As money poured out of MF Global, much of it likely passed through J.P. Morgan Chase & Co. and other banks where the securities firm had accounts, as well as trade-clearing partners such as Depository Trust & Clearing Corp. and LCH.Clearnet Group Ltd., people familiar with the matter said.
What do we need now? The truth.
From whom do we need to get it? All those involved, starting with former MF Global CEO Jon Corzine. (He’s the one on the far right in this picture. That would be President Obama on the left, Anna Burger, former Secretary-Treasurer of the SEIU, and Robert Rubin).
Think Jon is hoping his friends might be able to help him? You think?
How might we get the badly needed truth? A grand jury.
Let’s hear from AG Eric Holder, SEC chair Mary Schapiro, CFTC head Gary Gensler, and FINRA head Richard Ketchum. Whom do you people represent and whom are you charged with protecting? The American public at large and specifically the customers of MF Global whom have likely lost $1 BILLION+? Or do you represent and protect those more intimately involved in the Wall Street-Washington Incest?
Might President Obama, Ms. Burger, and Mr. Rubin have an opinion on this situation? I would venture to believe that each of these individuals would like to see actions taken that would help restore confidence in our markets. Right? One might think? Hello…??
I have an opinion. Sense on Cents is calling for a grand jury in this case.
The American public and MF Global customers should know that truth is being pursued and justice will be done. We are either a nation of laws in which we have equal justice under the law …or we are not.
In my opinion, the only way we may get the truth and justice is to know that all parties are compelled within a grand jury room “to raise your right hand and repeat after me…”
Enough is enough!!!
Larry Doyle
Sense on Cents Related Commentary
Sense on Cents/MF Global-Jon Corzine
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I have no affiliation or business interest with any entity referenced in this commentary. The opinions expressed are my own. I am a proponent of real transparency within our markets, our economy, and our political realm so that meaningful investor confidence and investor protection can be achieved.
Let’s go back and listen to Joe Biden’s take on Jon Corzine.
http://youtu.be/buRO9TSlScQ
Can’t make this stuff up..!!
Biden must be one of the dumbest pols in DC, which is saying a lot.
More grist for the mill.
What did the boys over at the Fed know about what was happening at MF Global. Maybe we should put some of them on the stand as well. Fox reported a month ago Records Reveal Contact Between Corzine and the Fed in MF Global’s Final Days,
It has been time for Grand Juries, for MF Global, Goldman Sachs, JP Morgan, AIG, Fannie and Freddie, etc, etc, the list could go on and on, but this would be a start.
The problem is that they are either employed by the President, or are friends with the President. You need to seize their things, since the majority of their things, aren’t their’s to begin with.
When does the CRONYISM end and the justice begin? People follow their leaders, if you want to know why there is so much corruption abound, the reasons why are founded in our very leaders’ own behavior.
Unless you do this Obama, you are doomed to lose this upcoming election because you will have shown that you have no HONOR, and we are watching.
Hear, hear!
No doubt many of the traders and investors who had their money stolen right out of their equity trading accounts are wishing that Congress were vaporized.
If it gets any more corrupt what is next? They just make an emergency announcement one morning and take all the money out of all of our retirement accounts to “save the economy”?
Where is all this going to end? I think it is all going to end quite badly for all of us if it is allowed to continue.
Obama, Holder, Schapiro, Gensler and every other pol and apparatchik needs to recuse and get out of the way, and a special counsel be appointed and a grand jury constituted to devote its undivided attention to this case and Mr. Corzine.
Larry…
Here is a link to a short article that explains how they also structured the MFGlobal Bankruptcy in an unusual way to in order to eliminate the priority that customer segregated accounts have over all other creditors in a broker bankruptcy. So it is apparent that not only did they openly steal investor/trader customer funds but then also conspired with key parties behind the scenes on an unusual bankruptcy structure to cheat the customers out of repatriation of the monies owed them from operating funds of the bankrupt debtor.
MF Global Funds Were Not Vaporized—Stanley Haar Takes WSJ to Task,
Chicago Tribune reports, MF Global Judge: No Chapter 7 Liquidation
Another WSJ story today about Corzine throwing her under the bus.
The fix is in. She was probably told to hire Weingarten since he would protect the establishment/Corzine. A back office administrator in Chicago doesnt normally have those kinds of DC legal connections….