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HomeIs Jon Corzine “Too Big to Be Indicted”? Part VI
Posted by Larry Doyle on December 15th, 2011 10:22 AM |
The ongoing saga to determine what may have happened at the critical points of demise within MF Global continues again today.
I once again encourage you to grab both a large popcorn and a barf bag while witnessing the House Financial Services Committee Hearing re: MF Global.
Will the committee members have the balls to drill down and address the critical questions as to who knew what and did what to violate the sanctity of segregated customer funds totaling a cool $1.2 billion at MF Global?
(more…)
Is Jon Corzine “Too Big to Be Indicted”? Part V
Posted by Larry Doyle on December 14th, 2011 7:13 AM |
Do you think it is believable that a financial firm’s CEO, CFO, and COO could all be ignorant in knowing where and how a billion dollars of customer funds may have gone?
You don’t? Neither do I, although if we were to take these aforementioned individuals’ statements to that effect on face value, we would be led to believe that the downfall and demise of MF Global was somehow just one big mistake.
I hope and trust that Americans are not so naive, and that our Congressional leaders will be appropriately rigorous in pursuing and unearthing the truth in this investigation.
To this end, I had previously suggested those investigating the MF Global bankruptcy should engage noted financial sleuth Harry Markopolos. Whom else might we want to listen to? (more…)
The European Shell Game
Posted by Larry Doyle on December 13th, 2011 11:43 AM |
I recently received the following message from a regular reader. Given the fact that every other piece of financial news seems to address developments in Europe, I would like to share his message and my response.
Hi Larry –
Hope you are doing well. I have read several articles in the last few days on this topic – rehypothecation – and how this is what really brought down MF Global, and also in a way what brought down AIG.
I’m still not completely understanding this. My primary question right now that I’d love to hear your opinion on is this – Was this the primary reason why David Cameron refused on Friday for Great Britain to agree to the EU treaty?
The reason I ask that is because the only way that MF Global could utilize rehypothecation is because in the UK, it is legal and there is no limit whatsoever on the amount that can be rehypothecated there (as opposed to in the U.S. where there are strict rules). (more…)
What Are the Greatest Risks?
Posted by Larry Doyle on December 12th, 2011 10:41 AM |
In the midst of all the research and analysis put forth by virtually every entity within the financial services industry, I VERY rarely see any mention of what I deem to be the two greatest risks that individual investors face each and every day.
We are fed and can read volumes about a wide array of risks, including market risk, interest rate risk, credit risk, currency risk, prepayment risk, volatility risk, and liquidity risk. While overwhelmed by analysis on these risks, my ‘sense on cents‘ leads me to focus primarily on the two greatest risks of all.
What are these risks and why is it that those within the financial services industry do not highlight them? (more…)
Is Jon Corzine “Too Big to Be Indicted?” Part IV
Posted by Larry Doyle on December 8th, 2011 8:58 AM |
With most eyes and ears today fixated upon Brussels to see what version of “charades” will next be played by the European heads of state in an attempt to save their union and their euro, there should actually be a slightly more entertaining ‘show’ on Capitol Hill today.
What ‘show’ might this be?
The testimony provided by the recently humbled and one-time Wall Street titan and Democratic political bigwig Jon Corzine in the ongoing saga of MF Global.
What really happened at MF Global? Who knew what and did what? (more…)
Robert Rodriguez Talks Sense on Cents
Posted by Larry Doyle on December 7th, 2011 12:52 PM |
I am often asked who my favorite economists, analysts, and money managers are. While there are some true visionaries out there, if I were compelled to choose only one individual to read and follow it would be Robert Rodriguez of First Pacific Advisors.
Rodriguez’s direct style and continual pursuit of the truth is refreshing in an industry more consumed with collecting assets and fees than actually informing individuals as to what is really going on in the markets and world at large.
With a major high five to my friend at eWallstreeter and also to Jacob Wolinsky of Valuewalk.com, I am thrilled to share some recent, thoughtful comments and opinions released a few days ago by our Sense on Cents Hall of Famer, Robert Rodriguez: (more…)
Sense on Cents Calls on US Supreme Court to Hear Standard Chartered v. FINRA
Posted by Larry Doyle on December 6th, 2011 9:09 AM |
I first started writing about Wall Street’s not-for-profit self regulatory organization, aka the Financial Industry Regulatory Authority (FINRA), in early 2009.
In late 2009, I first referenced Standard Chartered v. FINRA, the case in which the plaintiff alleges that FINRA and its senior executives — including current SEC Chair Mary Schapiro — lied both verbally and in writing in the merger which formed FINRA.
Why would Mary and her friends lie? (more…)
What Will Really Happen in Europe?
Posted by Larry Doyle on December 5th, 2011 6:44 PM |
Are we really supposed to believe the news released today that German Prime Minister Angela Merkel and French Prime Minister Nicolas Sarkozy favor a meaningful change in the Maastricht Treaty which serves as the basis for the European Union?
Seriously, how many times have we gone down this road hearing that the European heads of state and central bankers have struck a deal to save the EU and the euro?
Didn’t we just hear news of that sort merely a month ago, and now once again all eyes and ears are on the next major European summit to be held later this week? In typical, political fashion, the markets and ministers are front running the summit in an attempt to convey an air of equanimity while pretending that they are about to pull the proverbial rabbit out of the hat. (more…)
A Sad Tale of Wall Street’s Orphans
Posted by Larry Doyle on December 1st, 2011 7:56 PM |
A lead editorial the other day in the Wall Street Journal highlighted:
“Federal Judge Jed Rakoff’s rejection Monday of a $285 million settlement between Citigroup and the Securities and Exchange Commission is playing in some circles as a great populist victory against Wall Street. But it looks to us more like a rebuke of the cozy relationship between regulators and the regulated that too often leaves justice as an orphan.
Justice as an orphan sounds eerily similar to the fact that “success has many fathers, but failure is an orphan.”
Is there any greater failing in our nation than a lack of justice? I think not. (more…)
