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To Jon Corzine: This MF Global Client Wants Justice

Posted by Larry Doyle on October 29, 2012 11:07 AM |

On the heels of my MF Global commentary a few days ago in which I ran the exchange I had with a farmer in central Michigan, I received a number of messages of gratitude for continuing to shine a light on this travesty.

The pain felt by the farmer is also experienced by a whole host of other MF Global clients. I received another communication just this morning from an MF Global customer who screams for justice and challenges the premise of the most recent MF Global coverage in the WSJ. With his permission, I welcome echoing his scream and running his letter sent to editors of The Wall Street Journal

MF Global’s corporate accounting may have been a mess, but as a long-time MF Global customer I can assure you that the customer accounting system (GMI) never failed. Customers received daily account statements that were accurate to the penny, before, during and for a full week after the bankruptcy of the firm. Therefore,  the amount of money belonging to customers was known to management at all times and by law was required to be held in segregated bank accounts at all times.

CFTC rules permit firms to add their own funds to those segregated accounts, but NEVER allow customer funds to be removed and added to corporate accounts for proprietary purposes.

Accounting chaos and management incompetence may explain the losses incurred by MF Global’s shareholders and bondholders, but they do not provide an excuse for the looting of customer accounts to meet margin calls on insanely reckless proprietary bond bets.

Your recent article indicates that Mr. Corzine and senior management knew that their accounting system was unreliable, yet they went ahead and leveraged the company 40:1 on a high-risk speculative trade. Isn’t that a perfect example of “willful blindness” and “criminal negligence”? Will indictments be forthcoming, or are Obama campaign bundlers held to a different standard?

Regards,

Stanley P. Haar

What we seem to see at play here in the MF Global situation is comparable to so much else that has transpired on Wall Street. That is? Effective immunity without real transparency is nothing more than a license to steal. Am I wrong? I welcome hearing from more MF Global customers and providing a voice to your calls for justice as well.

Playing to win here for all those in America who believe in real capitalism and free, fair, and open markets.

Related Sense on Cents Commentary/MF Global-Jone Corzine

Navigate accordingly.

Larry Doyle

ISN’T IT TIME to subscribe to all my work via e-mail, an RSS feed, on Twitter or Facebook?

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 so that investor confidence and investor protection can be achieved.

  • Mark J. Novitsky

    Clearly Obama / Holder haven’t gone after bankster / corporate criminals so NO trust has been / should be restored. Especially with Mary Schapiro as head of the SEC…. Crime expands with our willingness to tolerate it. It expands explosively to our willingness to promote it. Why hasn’t Romney attacked the Obama administration’s DOJ/Holder’s epic “failure” / immunity-amnesty to litigate a single person of consequence responsible for the 2008 “crisis”to MF Global, FB IPO??? Clearly SOX 302/404 Disclosure laws warrant this. This would seem like a logical place to strike. Unless he has no intention of changing anything. Now…Bain Capital. Can anyone tell me how for 10 straight years Bain capital achieved 173% average annual rate of return? (LA Times)

  • Stanley

    Full-page Ads Placed in 10 Iowa and Ohio Newspapers, including The Des Moines Register.

    American Principles SuperPAC is pleased to announce its first major newspaper ad buy in 10 publications covering most of Iowa and targeted agricultural areas in Ohio.

    American Principles SuperPAC Announces Obama/Corzine/MF Global Newspaper Ad Buy.

  • Bill

    You really have to wonder about the legal system in the United States. Here we have a situation with law or regulation requiring that customer funds be segregated and which is apparently willfully ignored with impunity. Which of course raises the question, what is the point in having a law if it can be completely ignored with no consequences? I said back when the auction rate securities scandal manifested itself that the United States had metamorphosed into a kleptocracy, and I have seen nothing since to alter that conclusion.

  • Mark J. Novitsky

    At whatever cost the “ILLUSION” of consumer protection must be preserved! Other wise people would lose faith / trust in politicians, the “Justus” system and Wall Street. SOX was a fraud…Dodd-Frank is SOX2.0. “YAAAAHHHHHH!!! We won’t get fooled again!!!” Ooooops.

  • Andrew

    Anybody care to imagine what the hurricane relief effort would be like if Comrade Corzine were running it?

  • Mark J. Novitsky

    Compared to KATRINA??? – Corzine NEEDS to be in jail along with 1000′s of his friends. But he is a boy scout compared to ROMNEY! His business model is theft. DELPHI / GM suit after saying he opposed the auto bailout that allowed him to steal MILLIONS, defraud tax obligation, move DELPHI jobs to Mexico. Trust this guy? Anyone? A magical “legal?” 173% decade long average rate of return during the worst economy since the Great Depression? Explain that? – I have a 5 point “plan”…what is it? Going to cut taxes, raise defense spending (why? When we spend more than the rest of the world COMBINED!) without increasing the debt. REALLY? HOW? — YES…Obama is cleanest dirty shirt. This is our “democracy” / Republic. Pathetic. Debates & “news” beauty pagents…Big Bird, Binders, You didn’t build that….no I didn’t – Yes you did… Tragic. If voting actually mattered it would be illegal. Welcome to the Grand Illusion! 1.) Obama, 2.) Romney, 3.) None of the above.

  • Obsvr-1

    @ Novitsky

    yes #3 is the right choice, but only if we had an election / campaign system that allowed for Competent Candidates regardless of party affiliation. Said differently, the libertarians should be treated equally in being able to attend debates and be on the ballot. Also, get rid of this ridiculous Electoral College system.

    Notwithstanding my statement above, your co-opting of an article specifically targeted at the miscreants of MF Global to turn it into a Romney bash is lame.

    • Mark J. Novitsky

      What I’m saying is the DOJ will get around to investigating, indicting, prosecuting Mitt Romney / Bain Capital as soon as they go after over Corzine / MF Global. Which will be never. Immunity / Amnesty is bi-partisan…as long as you are in the 1% club. Hence…nobody should trust the markets.






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