Was MF Global Worth More as a Carcass?

EB's picture

Submitted by Go2ManagedFutures.com

Attempts are being made to sweep MF Global under the media rug in hopes that investors simply forget the eighth largest bankruptcy in US history despite clear allegations of documented fraud surrounding the firm and its politically connected former president, Jon Corzine.   The problem is, astute financial observers are aware of the corruptive behavior of Mr. Corzine, certain regulators and the US justice system.  Some are calling into question the security of the entire US financial system, not just the commodity industry. 

At the center of questionable activities is the bankruptcy process itself, loaded with recognizable personalities.  Among them, Louis Freeh, the former director of the Federal Bureau of Investigation (FBI), who has been accused of dragging his feet on a fraud investigation of top MF Global executives [update: and is under investigation by the Treasury Department for allegedly taking money from a designated Iranian terrorist group].  A trustee for the creditors in the Chapter 11 bankruptcy case, JP Morgan Chase, MF Global’s largest creditor, was said to have actively recruited Mr. Freeh for the trustee position, despite his law firm having but a handful of lawyers and no commodity industry or bankruptcy experience.  However, because this is a Chapter 11 bankruptcy, the process can drag out and Mr. Freeh and his related business endeavors could stand to pull in over $100 million in fees on the “plum case.”  

Some say Mr. Freeh is rewarding JP Morgan by soft-peddling a fraud investigation despite his role as a federally appointed trustee and the apparent nod by the Department of Justice (DOJ) that anointed Mr. Freeh status as the DOJ’s eyes and ears on the case.  Falsification of documents given by MF Global to regulators in the final days of the firm’s survival was alleged in Congressional Testimony by CMEGroup Chairman Terry Duffy, and knowledgeable industry sources speculate a web of fraudulent activity lies underneath the surface.  The key to uncovering this evidence could be the MF Global back office, members of which are currently requesting immunity from prosecution in exchange for their testimony. 

Strategically leaked press reports have cited investigators as saying the “case has gone cold,” and speculation widely exists that Mr. Corzine will not be convicted.  These “cold case” claims are being made despite the fact that press reports claim the MF Global back office has not been interviewed and neither have top MF Global executives, who are still working for the firm (and apparently set to collect bonuses).  

This is the case that is currently threatening the stability of the entire US financial system, establishing the template for future potential looting by the TBTF banks with the help of complicit and captured revolving door regulators and ex-government officials.  It is the case that many speculate is being swept under the rug of media attention.  

To see a recent media interview on Capital Account, where Mr. Freeh’s role is examined along with other significant questions, click here, or view the embedded video below.  


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hangemhigh77's picture

If there EVER was time for a lynchmob it's NOW.  And not just for Jon "Bozo" Corzine but Freeh and ALL the assclowns that have ANYTHING to do with this charade of a kangaroo court.  HANG THEM ALL. Then go get some more.

Yen Cross's picture

 Worth more as a " New Jersey" Whale CARCASS?  Welcome to the real world!  I'm a Capitalist!

Eireann go Brach's picture

Serve Corzines head in a basket and deliver it Wiliam Wallace style at the next congress meeting live on TV!

Joshua Falken's picture

The land of the free and the home of the brave is no more

No free elections - two warring factions both beholden to the same vested interest funding groups.  No presidential candidate can be shown to have the interest of the people at his heart apart from Ron Paul who will not be allowedto stand.

Privately owned central bank -  The Federal Reserve System of banks are privately owned and controlled by the same presidential funding group and are not a government agency. The Fed takes collateral and issues issues US Dollars against them, but not all of that collateral is issued by the US Treasury and the Fed ownership cartel act in their own interest and not necessarily the US people.


The MF Global bankruptcy shows that US Regulators and and the Dept of Justice have been corrupted by the same vested interest, Fed owning, presidential funding group, protecting Corzine, JP Morgan and Goldman Sachs from scrutiny.


America needs an overhaul of corrporate and banking influence over government as corruption is endemic on so many levels


jbc77's picture

At some point in time hopefully we as Americans will band together and figure out how to deal with ths disease that has infested our country. I'm getting tire of just throwing my hands up in surrender when I read stuff like this....

Liberty2012's picture

We the People create the world we llive in with every choice we make.

As more and more of us remember this, rational thinking will return and freedom will prevail.

mberry8870's picture

And this is the model being pushed for the $700T  OTC market. There is a reason this is quite.

Bulldog1's picture

Absolutely MUST SEE this lampoon of Corzine.  It's priceless!!!!  Funniest thing I've ever seen.


Buck Johnson's picture

That was awesome, people better download and record that cllip because I got the strange feeling that it won't be up for too long.

swani's picture

Well, considering the fact that Mr. Louis Freeh was best known for botching the September 11th investigation and was also the person who was 'handled' the call from the FBI informant giving warning and exact details of the Oklahoma City bombing weeks before happened, it is probably safe to say, that the Oklahoma City 'investigation' was also botched, so it is not at all surpring to hear that he is now 'investigating' the Sandusky incident for Penn State, and, acting as a federally appointed trustee in the MF Global larceny.

What is Mr.Freeh? Mr.Whitewash?

With his record, I'm afraid if I hear his name associated with any 'investigation', I'm not instantly filled with confidence that it will come to anything but appeasing the dumbest of sheeple.


Andy Lewis's picture

And yet he spent several years and mucho manpower investigating Clinton's cock.  Go figure.

Bulldog1's picture

Somebody HAS to make sure Tyler sees this.

Bulldog1's picture

This video is REALLY going to piss some people off!!!  Obama and his nazi collaborator - Dr. Strangelove - doing damage control over Corzine.  Mercilessly rips on Corzine, Obama, government statistics.  All with a nazi propoganda twist.

Bulldog1's picture

Absolutely MUST SEE this lampoon of Corzine.  It's priceless!!!!  Funniest thing I've ever seen.


mrdenis's picture

Senator Menendez: In this economic crisis, New Jersey is one of the states that has suffered the least because of the stewardship of Jon Corzine. He has made difficult, but necessary measures which is why he has been attacked unfairly.

Governor Corzine has invested 4 billion dollars for the construction of 52 new schools.

And now New Jersey has the best high school graduation percentage in the country.

Governor Corzine: Senator, come here!

Senator Menendez: Be right there! Let’s support our governor. Jon Corzine is our friend. We should all vote for him...............http://www.youtube.com/watch?feature=player_embedded&v=WE1SM2GmK5I

Zero Govt's picture

you don't need to be a rocket scientist to see John Corzines legal defence (protection racket). "He's the smartest guy i know on the economy and in finance"



"4 More Years, 4 More years"

The Law: a tool of oppression and protection for the elite....'That's All Folks'

Motorhead's picture

Lauren L. is feisty and scrumptious.  Too bad she's on RT.  But then again, the Clinton News Network isn't much different.

Normalcy Bias's picture

...and the girl can BLOW! Did you see that? Impressive...

MrBoompi's picture

Application of Occam's razor leads us to believe the confiscation of the funds, the manipulation of bankruptcy court, and the coverup were all engineered well in advance.  The government and the media are hapless bystanders as usual, doing what they're told.

Normalcy Bias's picture

Criminals are the law in this banana republic. It's all extend & pretend perception management until the end. We ain't seen nuthin' yet!

Eric L. Prentis's picture

All broker/dealers should be outraged and petitioning Congress about MFG’s $1.6 billion dollar plundering of their clients’ segregated accounts. Regardless what the 2005 bankruptcy law states, Jamie Dimon at JPMorgan Chase should be shamed and ostracized from polite society until he gives the MFG money back. Even if Dimon said, “Let MFG clients eat shit,” he would change his mind if Wall Street boycotted him.

How do broker/dealers expect to hold on to their clients, who can now expect the same MFG treatment, when the $707 trillion OTC derivatives market goes bust? Trust in the financial system NOW HAS TO BE EARNED. The ball is now in Wall Street’s court.

BeetleBailey's picture

Fuck any bank in America.

Fuck Bernanke - sans lube and small talk.

Corzine should be taken out, a la Lee Harvey - the same with a whole BUNCH of other bankstas and financial gangstas.

I await the news story of a disgruntled former MFG customer and his high powered rifle......

vegas's picture

Don't forget the stink by the CME [Criminals Mercantile Exchange], the world's largest slush fund for politicians and regulators. And don't forget, Chalky Soetero's home turf that is protecting slimeball Corzine. Why anybody would trade through this corrupt place is beyond me; you people with commodity accounts are just the dumbest people on earth.



Bartanist's picture

Here is the problem. Whether it is commodities, equities or for that matter real estate, it ALL leads back to the Fed and the owners of the Fed. They believe and have the corrupt legal standing to support their belief that they own everything and have the right to take it back what they believe they own from others at any time. You think you own something, but in the eyes of the rulers of the world, they own everything, including your body and soul.

Pretty freaky, eh?

navy62802's picture

If they're not looking anywhere, then of course the case will go cold. Don't ask the questions, you don't get the answers.

mvsjcl's picture

To paraphrase NIST: We did not test for the use of explosives because there was no evidence that any was used.

Joebloinvestor's picture

The "fix" was in when Gensler "recused" himself and he wasn't indicted or fired.

Why anyone would do business with the CFTC or CME is beyond me.

XitSam's picture

They may have to destroy evidence and/or kill witnesses before January 20. Should be plenty of time.

chunga's picture

Speaking of the JPMorgue and rug sweeping...

Who can remember all the way back to last Thursday's comment (#57019) by (alleged) JPMorgue employee on the U.S. Commodity Futures Trading Commission site? What happened? Austerity hits CFTC and they must be clearing drive-space.

The comment has been rehypthecated.

Comment for Public Information Collection 77 FR 8817

"The Comment Cannot Be Found. Please Return to the Previous Page and Try Again."

Forgiven's picture

The new Obama executive order National Defense Resource Preparedness will give them whatever authority they need to claim for looting MFG...

Obadiah's picture

Are those naked boobs and a gun?

And are they yours or did you rehypothocate?



Joebloinvestor's picture

If you read the order, the government plans on seizing control of "HEMP" also.


tsx500's picture

maybe.    i found it interesting (*cough*) that this executive order was signed on the Friday right before a major  party  holiday (St. Patties Day)........probably just a coincidence (*cough*) .       Just like how he signed the NDAA on New Year's Eve !      Regardless of your political leanings , if you're not genuinely scared and worried about the future of this once great nation , you're either dead or stupid .  

BeetleBailey's picture

There are about 200 million or so COMPLETELY  stupid people in America.....that will fall for anything said over the news, especially by the slickster jackass Obama, and "LEADERS" of Congress, who mostly - not all - but mostly should be behind bars.


Criminals.....every damn last one of them.

Debt-Is-Not-Money's picture

Sodium Fluoride (poison) in the drinking water,

Antidepressants (paxil, etc.) To chemically lobotomize you (irreverseable)

Do you trust your doctor?

I sure do! /sarc

gwar5's picture

Recall, couple months ago: Bank of America put it's toxic assets on the commericial banking side over the strong objections of the FDIC who is totally unable to handle the trillions in liability. The FED made the FDIC accept this maneuver. Depositors (taxpayers) are now on the hook and this is a systemic risk. BAC has become a toxic waste dump.

Joe Davola's picture

BAC has become a toxic waste dump.


Wouldn't that be an upgrade?

Encroaching Darkness's picture

OF COURSE MF Global was worth more as a carcass, handled a certain way, than as a going concern or one liquidated under proper bankruptcy procedures (returning customer accounts to customers). Figure out who benefited from the way it was handled (hint: JPM, etc.) and you'll see the strings used by the puppetmasters to control the puppet (Geithner, in this case). Once you notice that strings run in all directions (govt. to Wall Street, Wall Street to govt., military to CONgress and back, overseas banks to Fed and back, etc.) you will decide that it's ALL a puppet show, and everyone in it is a puppet in one direction or another. Are you watching the show or part of it? Can you feel your strings? Will you do anything about it?

CEOoftheSOFA's picture

In early February, the Huffington Post reported that the money was found and was going to be returned to the rightful owners.  They cited "Unnamed sources".  I haven't seen any other news organization pick up the story.  I suspect the story is true.

There are leaks indicating that the case has gone cold. 

Two weeks ago Bloomberg reported that there are three organizations bidding to buy the debt of the MF Global customers.  No mention of what fraction they were willing to pay, or who was bidding.  But Bloomberg thought it was a reason to be exuberant. 

I think the money was found and they are sending out false stories indicating that the case went cold.  The next thing we will hear is that most of the debt was sold to the usual suspects for pennies on the dollar, afterwich the money will be "found". 

CoolBeans's picture

 Well, the MF Global and other bankster scandals were just "warm ups", I guess - to get us used to the fact that everything could be taken away from us and we can't do anything about it.

Next up:  Military state per the Executive Order signed this past Friday by the O'Bummer Dictator.

We are so screwed.

SheepDog-One's picture

No they didnt say 'its nothing', and its obviously 'something' as its an executive order, along with HR347 which has just as troubling language in it. 

'Its all nothing'? I dont have any time for you neandersheeple.

Jason_1sandal's picture

Executive order link please.....

SheepDog-One's picture

long with HR347 which sailed thru congress into law making it a felony to protest, among other things. OH I'm sure its 'nothing' though, we're all just paranoid I guess and all has never been better I'm sure.

bank guy in Brussels's picture

The American oligarchs are in absolute glee at seeing just how far they can rob and steal from people ... and get away with it.

People going along because it is * Fully Approved * by the bribed judges of American federal courts, and by the pro-oligarch corporate media.

Former FBI Director Louis Freeh ... another American greedy mercenary fraud of a law enforcement official, like that Michael Chertoff who used to be Homeland Security top goon and now sells those body-rape scanners to US airports.