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House Republicans Find Corzine Guilty Of MF Global Collapse, Missing Funds; Democrats Refuse To Endorse Findings

Tyler Durden's picture





 

It appears that these days not even the Corzining of client money can happen without it being split across furiously polarized party lines. As it turns out hours ago, the Committee on House Financial Services released an advance glimpse into a report to be released in its entirety tomorrow, which puts the blame for the collapse of not only MF Global, but also the disappearance of millions in client money, right where it belongs: the firm's then CEO Jon Corzine.

As Bloomberg summarizes, "The summary reflects conclusions reached by Republicans, who hold a majority on the panel and were in contact with Democrats during the investigation, according to Jeff Emerson, spokesman for the Financial Services Committee. The investigation included three congressional hearings, more than 50 interviews and a review of documents from MF Global, former brokerage employees and regulators, according to the summary."

Yet that Corzine corzined millions, leaving clients scrambling in bankruptcy court in an attempt to recover what should have been segregated money from the very beginning, and also just happened to blow up one of the 21 Fed-anointed Primary Dealers, is not surprising: this has been long known by everyone. Those who need a refresher are urged to recall the Honorable's testimony before the House... or maybe not: after all it is not as if Corzine himself could recall a whole lot. Where it gets interesting is that the former Democratic governor, and senator, not to mention primary bundler for president Obama, is, in the eyes of the members of the committee, innocent: All the democrats on the Investigations Subcommittee refused to sign off on the findings, meaning that to them, Corzine is completely innocent. That this is purely a political move is glaringly obvious. It is also abhorrent, because as long as political ideology gets in the way of pursuing and imposing justice, the Banana States of America will remain just that.

From The Committee on Financial Services:

Subcommittee Investigation Reveals Decisions by Corzine Led to MF Global Bankruptcy and Missing Customer Funds 

Full report of Financial Services Oversight and Investigations Subcommittee
to be released Thursday

 

WASHINGTON – Decisions by Jon Corzine to chart a radically different course for MF Global and try to turn the 230-year-old commodities broker into a full-service investment bank were the cause of the firm’s bankruptcy and failure to protect customer funds, Republican members of a congressional subcommittee will report this week.

The House Financial Services Subcommittee on Oversight and Investigations, chaired by Rep. Randy Neugebauer, will release the full results of its year-long staff investigation into the collapse of MF Global on Thursday.

 

“Our investigation is essentially an autopsy of how MF Global came to its ultimate demise and what can be done to prevent similar customer losses in the future,” said Chairman Neugebauer.

 

Corzine, a former co-chairman of Goldman Sachs who later became a U.S. senator and governor of New Jersey, resigned from MF Global on November 4, 2011, almost 20 months after becoming the firm’s Chairman and CEO.  The brokerage had declared bankruptcy four days earlier and its collapse revealed a $1.6 billion shortfall in customer funds. 

 

“Choices made by Jon Corzine during his tenure as chairman and CEO sealed MF Global’s fate,” Chairman Neugebauer stated.   “Farmers, ranchers and other customers may never get back over $1 billion of their money as a result of his decisions. Corzine dramatically changed MF Global’s business model without fully understanding the risks associated with such a radical transformation.”

 

The Subcommittee’s staff investigation of MF Global involved three hearings, more than 50 witness interviews, and the review of more than 243,000 documents obtained from MF Global, its former employees, federal regulators and other sources.

 

“By expanding MF Global into new business lines without first returning its core commodities business to profitability, Corzine ensured that the company would face enormous resource demands and exposed it to new risks that it was ill-equipped to handle,” the subcommittee report states.

 

In order to generate the revenue needed to fund MF Global’s transformation, Corzine invested heavily in the sovereign debt of struggling European countries.  These investments, which carried enormous default and liquidity risks, were a “prime focus” of Corzine’s attention and he failed to develop a corporate strategy for managing the risks, the subcommittee majority staff found.

 

Authoritarian atmosphere

 

Those risks were exacerbated by an authoritarian atmosphere Corzine created at the firm where “no one could challenge his decisions,” the subcommittee report reveals. 

 

Corzine made significant changes to MF Global’s senior management, including the hiring of Bradley Abelow, his former gubernatorial chief of staff, as the firm’s chief operating officer.

 

When MF Global’s chief risk officer disagreed with Corzine about the size of the company’s European bond portfolio, Corzine directed him to report to Abelow rather than to MF Global’s board of directors.  “This change effectively sidelined the most senior individual charged with monitoring the company’s risks and deprived the board of an independent assessment of the risks that Corzine’s trades posed to MF Global, its shareholders and its customers,” the report declares.

 

Corzine insulated trading activity from review process

 

In addition, the subcommittee’s report reveals that Corzine acted as MF Global’s “de facto chief trader” and insulated his trading activities from the company’s normal risk management review process.  This enabled Corzine to quickly build the company’s European bond portfolio “well in excess of prudent limits without effective resistance.”

 

Rather than hold the European bonds on MF Global’s books, which could expose the company to earnings volatility, Corzine chose to use these bonds as collateral in repurchase-to-maturity (RTM) transactions.  This permitted the company to book quick profits while keeping the transactions off its balance sheet.

 

Failure to initially disclose extent of risks

 

Since MF Global did not initially disclose the full extent of its European bond holdings, federal regulators and the investing public were not aware of all the risks facing the company. 

 

The belated disclosure in October 2011 of its extensive European RTM portfolio – which amounted to 14 percent of MF Global’s total assets – combined with poor earnings news prompted credit rating agencies to downgrade the company’s credit rating to junk status. 

 

The downgrade set off a “run on the bank” by MF Global’s investors, customers and counterparties that created a liquidity crisis during what would turn out to be the company’s final days.  

 

Because Corzine had failed to integrate systems and controls for managing the company’s liquidity and protecting customer funds, the company could not fully assess and anticipate its liquidity needs during the crisis, nor could it coordinate its cash management, liquidity monitoring and regulatory compliance functions.

 

Liquidity crisis prompts withdrawal of customer funds

 

“As the company struggled to find additional liquidity,” the subcommittee reports, “company employees identified excess company funds held in customer accounts.  However, because they did not have an accurate accounting of the amount of customer funds the company held, they withdrew customer funds as well as company funds.”

 

The subcommittee notes that it will be up to prosecutors and regulators to determine whether MF Global or its employees violated laws or regulations when these withdrawals of customer funds were made.

 

‘Dereliction of duty

 

“However, the responsibility for failing to maintain the systems and controls necessary to protect customer funds rests with Corzine,” the report maintains.  “This failure represents a dereliction of his duty as MF Global’s chairman and CEO.”

 

In its report, the subcommittee recommends that Congress consider legislation to impose civil liability on the officers and directors of futures commission merchants (FCMs) like MF Global who sign financial statements or authorize transfers from customer segregated accounts.  Such legislation could “restore investor confidence in the derivatives markets and ensure that an FCM does not misuse customer funds in the future,” the Subcommittee report said.

 

Other findings of investigation to be released

 

In addition to its findings that Corzine’s decisions led to MF Global’s downfall, the Subcommittee report is expected to address regulatory agencies’ failure to share critical information with each other about MF Global, failures by credit rating agencies to sufficiently review MF Global’s public filings, and concerns about the New York Federal Reserve’s decision to designate MF Global as a “primary dealer” despite the company’s troubled financial situation.

 


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Wed, 11/14/2012 - 19:16 | Link to Comment Rearranging Dec...
Rearranging Deckchairs's picture

yeah great but no one's going to prosecute. I wonder if the conclusions of a congressional panel are admissible in the civil suits ?

Wed, 11/14/2012 - 19:18 | Link to Comment no taste
no taste's picture

Please consider contributing to the fund to repurchase Corzine's soul.

http://howstupidare.blogspot.com/2012/08/how-stupid-are-free-jon-corzine_9874.html

Wed, 11/14/2012 - 19:20 | Link to Comment john39
john39's picture

i read in RT today that some guy got convicted in Alabama of selling a couple copied cd's and got sentenced to two years in prison...    clearly he should have sold 200 million CD's, and could then walk away like corzine.

Wed, 11/14/2012 - 19:24 | Link to Comment kaiserhoff
kaiserhoff's picture

So much for the rule of law.

Wed, 11/14/2012 - 19:28 | Link to Comment NotApplicable
NotApplicable's picture

As I mentioned in another thread earlier, I've yet to see anything in the report discussing his blatant CRIMINAL activity.

Instead they just paint him as a loose cannon, taking on undue risk, which caused a bank run, which brought down MFG.

Perhaps there's something buried deep within the report, but if so, it's being white-washed away.

Wed, 11/14/2012 - 19:34 | Link to Comment redpill
redpill's picture

Free Jon Corzine!

Wed, 11/14/2012 - 19:38 | Link to Comment asteroids
asteroids's picture

I would be more than happy to free him from the hangmans noose after he expires.

Wed, 11/14/2012 - 19:58 | Link to Comment AlaricBalth
AlaricBalth's picture

I would think an aggressive state attorney would have standing to charge Corzine with criminal breach of fiduciary duty. If the Feds don't have the intestinal fortitude perhaps a state prosecutor will.

"If a relation of trust and confidence exists between the parties (that is to say, where confidence is reposed by one party and a trust accepted by the other, or where confidence has been acquired and abused), that is sufficient as a predicate for relief. [ ] Fiduciary relationships may be implied in law and such relationships are premised upon the specific factual situation surrounding the transaction and the relationship of the parties. [ ] Courts have found a fiduciary relation implied in law when confidence is reposed by one party and a trust accepted by the other. [ ] To establish a fiduciary relationship, a party must allege some degree of dependency on one side and some degree of undertaking on the other side to advise, counsel and protect the weaker party."

Wed, 11/14/2012 - 22:13 | Link to Comment Rearranging Dec...
Rearranging Deckchairs's picture

I wasn't aware that there was such a thing as a criminal breach of fiduciary duty! I have only ever heard  about breach of fiduciary duty as a civil cause of action. He is surely liable for a breach of fiduciary duty by his actions taken as outlined in the report. Unfortunately, I am sure that MF Global had Errors and Omissions or Directors and Officers insurance as well as probably have some sort of indemnification clause in their bylaws so its not like the civil suits will directly punish Corslime. Unless they manage to make civil fraud causes of action stick.

If there is indeed such a crime I would like to see an agressive state attorney general

Thu, 11/15/2012 - 01:28 | Link to Comment redpill
redpill's picture

Well, it's criminal when it's blatent fraud.  We're not talking about an accounting error here.

 

Thu, 11/15/2012 - 02:10 | Link to Comment strannick
strannick's picture

As every good Democrat knows, there is no objective Truth, only subjective truths. You only have to choose to believe Corazine is innocent and then it becomes true to you.

Only power mongering white patriarchical western males insist on such antiquated notions such as justice and truth.

Only Republican Fascists would attempt to smear a noble Obama footsoldier such as John Corazine.

Thu, 11/15/2012 - 08:10 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

On further review....there's not sufficient evidence to support the challenge.

 

The play stands. First down and ten.

 

Hurray for our side. Paying off the referees was a good call.

 

Thu, 11/15/2012 - 08:36 | Link to Comment kralizec
kralizec's picture

More proof of zero difference between Dem's & Pubbies?  Absolutism is soooo confusing...

Thu, 11/15/2012 - 01:30 | Link to Comment williambanzai7
williambanzai7's picture

Breach of fiduciary duty is watered down by something else called the "business judgement rule."

Thu, 11/15/2012 - 01:16 | Link to Comment hidingfromhelis
hidingfromhelis's picture

Hmmm, no mention of clawing back the segregated account funds that improperly went to JPM.  Imagine that!

Thu, 11/15/2012 - 07:30 | Link to Comment Karl von Bahnhof
Karl von Bahnhof's picture

Maybe he should go to jerk off to some orthodox church or put a frozen chicken in his ass in WalMart to ensure his freedom.

/sarc on

Wed, 11/14/2012 - 19:43 | Link to Comment TeamDepends
TeamDepends's picture

He is pretty good looking...

Wed, 11/14/2012 - 19:46 | Link to Comment NotApplicable
NotApplicable's picture

*With purchase of bankster of equal or greater value.

Thu, 11/15/2012 - 01:35 | Link to Comment A Nanny Moose
A Nanny Moose's picture

But wait! There's more!!!

Wed, 11/14/2012 - 19:50 | Link to Comment tom a taxpayer
tom a taxpayer's picture

Where the hell are the prosecutors?

William Black for Special Prosecutor.

Wed, 11/14/2012 - 20:50 | Link to Comment knukles
knukles's picture

There're thousands upon thousands of star prosecutors... just nothin' to prosecute.

Thu, 11/15/2012 - 08:13 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

I See Nothing - Sgt Schultz

http://www.youtube.com/watch?v=34ag4nkSh7Q

Wed, 11/14/2012 - 20:14 | Link to Comment Beam Me Up Scotty
Beam Me Up Scotty's picture

"As I mentioned in another thread earlier, I've yet to see anything in the report discussing his blatant CRIMINAL activity.

Instead they just paint him as a loose cannon, taking on undue risk, which caused a bank run, which brought down MFG.

Perhaps there's something buried deep within the report, but if so, it's being white-washed away."

If they painted Corzine a criminal it would reveal that they are all criminals in one way shape or form. The whole thing is rotten to the core.

Wed, 11/14/2012 - 19:47 | Link to Comment Urban Redneck
Urban Redneck's picture

Jury nullification is the rule of law, just ask OJ.  Hopefully if someone takes the law into their own hands, they will benefit from jury nullification as well.

Wed, 11/14/2012 - 19:25 | Link to Comment Troll Magnet
Troll Magnet's picture

Why do you want to prosecute Corzine?  Are you a Hamas member or something?

Shalom, bitchez!

Wed, 11/14/2012 - 19:43 | Link to Comment TruthInSunshine
TruthInSunshine's picture

The Hon. Jon S. Corzine is far too relaxed on his luxurious sloop ("Fractional Rig-ged") that's currently cruising through warm Caribbean turquoise/aquamarine waters to be bothered by such political wrangling.

 

#PimpHandStrong

Wed, 11/14/2012 - 19:33 | Link to Comment emersonreturn
emersonreturn's picture

as well as corzine, obama has to answer for underwriting the banks rather than giving the Fed's bogus printed fiat to small business.  he chose to support crime and corruption rather than follow a path toward prosperity and integrity. 

Wed, 11/14/2012 - 20:50 | Link to Comment Troll Magnet
Troll Magnet's picture

Op, op, op, op

Oppa Chicago Style!

Wed, 11/14/2012 - 21:52 | Link to Comment SILVERGEDDON
SILVERGEDDON's picture

Corn, meet hole. We are the hole, Corzine and his buddies are the cobs. Bend over, bitchez.

Wed, 11/14/2012 - 23:23 | Link to Comment eatthebanksters
eatthebanksters's picture

I'd rather donate a bullet to the soul that is brave enough to take the shot...

Thu, 11/15/2012 - 00:10 | Link to Comment FEDbuster
FEDbuster's picture

Better make that a silver bullet with a tungsten cross as it's core.

Why hasn't one of the people he ripped off taken this POS out?  There has to be a rancher, farmer, etc... out there who can put a hole through a silver dollar from 200yds. out with a 30.06, just sayin...

Wed, 11/14/2012 - 20:46 | Link to Comment Buck Johnson
Buck Johnson's picture

I think they are.

Wed, 11/14/2012 - 21:04 | Link to Comment xtop23
xtop23's picture

I just can't believe, we have fallen so far, that this fuckhole still has his freedom.

Wed, 11/14/2012 - 21:44 | Link to Comment vast-dom
vast-dom's picture

Good cop, bad cop fuck them both = the game is to perpetuate the rot.

Wed, 11/14/2012 - 19:17 | Link to Comment HelluvaEngineer
HelluvaEngineer's picture

If cracka don't go jail, imma gonna riot </twitter>

Wed, 11/14/2012 - 20:23 | Link to Comment BurningFuld
BurningFuld's picture

cracka ain't gonna see no jail: In its report, the subcommittee recommends that Congress consider legislation to impose civil liability on the officers and directors of futures commission merchants (FCMs) like MF Global who sign financial statements or authorize transfers from customer segregated accounts.

Civil liability??? Are you fucking kidding me? The guy should be in shackles with NO BAIL!! He knowingly robbed hundreds of people.

In other news I am luckily married to an American citizen and have just discovered her reporting requirements under FBAR. (Look it up) I think you people HAVE LOST YOUR FUCKING MINDS! That's just my opinion of course as I am sure you have plenty of money and time to peruse through legally registered foreign retirement accounts while all the time remembering Mittens paying his whopping 14% tax. Good thing your politicians are not running for office here!!! Fuck me.

Wed, 11/14/2012 - 23:08 | Link to Comment SilverRhino
SilverRhino's picture

That would be the same Mittens who donated roughly a quarter of his income to charity right?   

Thu, 11/15/2012 - 00:04 | Link to Comment dark pools of soros
dark pools of soros's picture

saying he has Income???  Those are fighting words for the 1%

Wed, 11/14/2012 - 19:18 | Link to Comment LongSoupLine
LongSoupLine's picture

 

 

Time for another ZH "Meet the members of the (insert corrupt group here)" profile outting.

 

I love those.

Wed, 11/14/2012 - 19:24 | Link to Comment PrintingPress
PrintingPress's picture

Print names! 

 

Get 60 minutes to do a story on things and get this public.  I bet there are some farmers that have an opinion on this. 

Wed, 11/14/2012 - 19:32 | Link to Comment NotApplicable
NotApplicable's picture

LOL, surely you don't believe in the sanctity of 60 Minutes?

Like all weapons, they are used by one entity to take out another. The only thing to learn from 60 Minutes is who isn't in "the club" (total take-down) vs. who is (fake attack in the form of damage control).

In other words, one of the finest long-term CIA ops going.

Wed, 11/14/2012 - 19:47 | Link to Comment iDealMeat
iDealMeat's picture

+1,  Watched it last night. It was on mortgage fraud, derivatives, and general crisis in 08. The sole reason I watched it was to see who they'd name..

 

Yep..  They called out the usual Bankster criminals save 2..  No mention what-so-ever of Goldman or JP. Morgan..

nada..

Wed, 11/14/2012 - 20:43 | Link to Comment Bay of Pigs
Bay of Pigs's picture

Yes, we dont need people to name names, we know who the Morgue is.

CFTC Commissioner Bart Chilton on HFT regulations, silver manipulation probe & MF Global

http://rt.com/programs/capital-account/bart-chilton-regulations-global/

Wed, 11/14/2012 - 19:18 | Link to Comment foodstampbarry
foodstampbarry's picture

Bring on the end...Dissolve this union bitchez.

Wed, 11/14/2012 - 19:23 | Link to Comment The Shootist
The Shootist's picture

Burn baby, Burn!

Wed, 11/14/2012 - 22:48 | Link to Comment yogibear
yogibear's picture

Let's start with Texas breaking away and then other viable states that haven't been infested with leeches and socialist.

Wed, 11/14/2012 - 19:18 | Link to Comment ghengis86
ghengis86's picture

Remind me again why I don't go and rob banks, the Treasury and all the TBTF's?

Wed, 11/14/2012 - 19:20 | Link to Comment no taste
no taste's picture

Because that is where you work, Jamie Dimon.

Wed, 11/14/2012 - 19:33 | Link to Comment NotApplicable
NotApplicable's picture

LOL

"Go home Jamie. You're drunk!"

Wed, 11/14/2012 - 19:26 | Link to Comment Strider52
Strider52's picture

Corzine should be sentenced to jail for a thousand years, or hard labor mining gold to get the customer's money back. But he won't.

Wed, 11/14/2012 - 22:47 | Link to Comment Papasmurf
Papasmurf's picture

He should be dressed in a French maid costume at one of the finest French hotels during a DSK visit.

Wed, 11/14/2012 - 19:19 | Link to Comment Dr. Engali
Dr. Engali's picture

Funny how they came to that conclusion after the election. It might make one think they wanted to loose. Put up a crappy candidate and hold back a lot of information that could have sunk Obama.

Wed, 11/14/2012 - 19:22 | Link to Comment e-man
e-man's picture

I always wondered about that.  Many things didn't seem to add up right.

Wed, 11/14/2012 - 19:26 | Link to Comment Everybodys All ...
Everybodys All American's picture

Why do you assume the media would actually find blame with their messiah Obama?

Wed, 11/14/2012 - 19:32 | Link to Comment Rearranging Dec...
Rearranging Deckchairs's picture

Clearly the republicans don't really care about protecting the little guy or they would have made a bigger issue of it.

But no one I have talked to in the last year including seemingly intellient informed adults have ever known what MF Global was. I am talking about dozens of people I tried to educate about it.

 

Almost no play in the main stream media.  Clearly Wall street owns the media! They can't let it out what a joke the regulatory environment truly is and that no one's money is safe.

Wed, 11/14/2012 - 19:36 | Link to Comment NotApplicable
NotApplicable's picture

I hear ya. Start talking MFG and people instantly become deaf, dumb and blind.

Well, voters, at least. The others? They just shake their head and walk away, as the corruption is a given.

Wed, 11/14/2012 - 19:53 | Link to Comment blunderdog
blunderdog's picture

The trouble is: MOST people don't care which rich guy is ripping off whichever other rich guy.  They never have.

That the MF Global story describes a crime and demonstrates the failure of rule of law in the USA isn't in doubt, but there are so many OTHER issues which have a more direct bearing on the lives of the masses that it would be foolish to expect this particular story to get any press attention.

75,000 affluent folks were ripped off by a company that they depended on to help them stay affluent.  Compare that to a million people imprisoned for non-violent drug-related offenses (another story which receives little press attention) for some sense of scale.

Virtually everyone I know and socialize with has been aware for years that anyone you do business with can rip you off, and if they do, you have no real recourse.  It's about time that understanding "trickled up" to the folks with real money.

Wed, 11/14/2012 - 19:59 | Link to Comment Rearranging Dec...
Rearranging Deckchairs's picture

Yeah but it doesn't take a huge leap in logic to see that if it could happen to those 75,000 well off people that it could happen to the tens if not hundreds of millions of Americans  with pensions, retirement accoutns, and regular old brokerage accounts. 

Wed, 11/14/2012 - 20:32 | Link to Comment blunderdog
blunderdog's picture

As I said--everyone *I* know already knows there are no guarantees. The percentage of folks who still fully buy into the Americanist Myth must be down to single-digits by now, don't you think?

Lemme use a specific example just for clarity...

Say you got a phone call from your cell-provider (or ISP) saying you were late in your payments and you had better give them $140 immediately or they'd have to shut down your service.  You might know with 100% certainty that you DON'T owe that $140, but what would you DO?  Ask to speak to a supervisor?  Fight with them for hours on the phone to some dude in another state (or country) who knows only what he sees on his terminal?  Threaten to SUE?

If you are like MOST Americans, you'd piss and moan and make the payment.  Maybe you'd find out later that they caught the mistake and they'd credit your account, but what would be your RECOURSE if they just kept the money?  You'd pretty much be limited to looking for another provider.

The MF Global story is pretty much *exactly* analogous, but the sums of money are bigger.  If you haven't yet realized that "everyone's out to get your money," you're not paying much attention to life in the US. 

The beauty of it is that you're more or less able to get away with the same crimes.  Get someone's signature on the right maintenance contract and you can keep billing them FOREVER.  If you have their authorization to bill a credit-card, you even know you're gonna get the money no matter what the "customer" thinks.

Thu, 11/15/2012 - 00:46 | Link to Comment H E D G E H O G
H E D G E H O G's picture

sorry 'dog, but this MF would threaten to find said caller and cut the heads off him, and everyone else in his family tree if he didn't get the fucking "mistake" fixed, and quickly. same goes for the prick corzone. capiche?

Thu, 11/15/2012 - 11:44 | Link to Comment blunderdog
blunderdog's picture

Dude, this is the Internet.  OBVIOUSLY everyone here is a badass.

Wed, 11/14/2012 - 20:02 | Link to Comment Obadiah
Obadiah's picture

I actually have asked at least 10 people all CLUELESS about Jonnyboy... Even a 25 yr vet cop

 

What? were effed

Wed, 11/14/2012 - 22:05 | Link to Comment earnyermoney
earnyermoney's picture

If Corzine were a Repub, he'd have received the Abramoff treatment right up through the closing of the polls. Since he's a D, not so much.

Wed, 11/14/2012 - 19:43 | Link to Comment dwdollar
dwdollar's picture

Assuming the elections are legitimate...

Wed, 11/14/2012 - 19:46 | Link to Comment walküre
walküre's picture

Corzine would have had Romney's ass. Beware of bugger imagery.

Wed, 11/14/2012 - 21:11 | Link to Comment LawsofPhysics
LawsofPhysics's picture

As we have discussed before, there is only one party, for the banks and financial houses, by the banks and financial houses.

Should they want markets to rally they will hang Corzine publicly.

Thu, 11/15/2012 - 09:04 | Link to Comment semperfi
semperfi's picture

Crappy? As in the guy who lost to McCain who then lost to The Chicago Marxist in '08 crappy ?

Wed, 11/14/2012 - 19:20 | Link to Comment dwdollar
dwdollar's picture

Gosh, the Demorats are surely teaching Wallstreet a lesson.

Wed, 11/14/2012 - 19:20 | Link to Comment Deathrips
Deathrips's picture

But the Money Vaporized?

SILVER IN THE POCKET>>>>>>>>

Wed, 11/14/2012 - 19:21 | Link to Comment Cdad
Cdad's picture

I hear Ben Bernanke's voice just now, in answer to a question at one of his news conferences not long ago, a question about why the Fed felt justified in QEing, a leading question by the reporter about bank bailouts.  In answer, Dr. Bernanke, in a sarcastic tone, confessed that he knew that many thought it was all about putting money into big banks, propping up banker bonuses, etc.

That J. Corzine is still walking around is, in fact, proof of the banker cabal that B. Bernanke mocked during that news conference.  And as long as this cabal continues to exist in its current state of omipotent power, the US ecnoomy shall never recover, as capital will not form at the feet of such criminals.  And as such, all we will have is the printing press which, by now, everyone should understand as counter productive where economic recovery is concerned.

More banker pink slips, please...and an orange jump suit for Corzine.

Wed, 11/14/2012 - 19:23 | Link to Comment ghengis86
ghengis86's picture

I've got a matching neck tie for his jumpsuit

Wed, 11/14/2012 - 21:09 | Link to Comment xtop23
xtop23's picture

^ that 

Thu, 11/15/2012 - 09:02 | Link to Comment semperfi
semperfi's picture

rope & chains

Wed, 11/14/2012 - 19:23 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

Hear no evil, see no evil, do not speak of the evil, thus there is no evil.

Wed, 11/14/2012 - 19:25 | Link to Comment Yen Cross
Yen Cross's picture

   Is anyone surprised, after TOTUS spent [67:32] bloviating today?

Wed, 11/14/2012 - 19:24 | Link to Comment reader2010
reader2010's picture

Free Madoff.

Thu, 11/15/2012 - 05:19 | Link to Comment e-recep
e-recep's picture

aka thief of thiefs.

Wed, 11/14/2012 - 19:24 | Link to Comment rodocostarica
rodocostarica's picture

just got an ad for Learning Hebrew here on ZH. I clicked it to add to the ZH pot. Did that appear for me becuase I clicked on the link to the Hamas rocket attack on Tel Aviv? Wow this google shit is pretty intense.

Wed, 11/14/2012 - 19:36 | Link to Comment Billy Shears
Billy Shears's picture

Yeah, I once made a negative remark about Israel on twitter and El Al started following me; weird!?!

Wed, 11/14/2012 - 19:24 | Link to Comment semperfi
semperfi's picture

The Kenyan Thug and his Democrat Army ARE THE LAW.  Any questions?

Wed, 11/14/2012 - 19:42 | Link to Comment Bastiat
Bastiat's picture

Chicago marxist thug is more like it.

Wed, 11/14/2012 - 19:49 | Link to Comment NotApplicable
Wed, 11/14/2012 - 19:26 | Link to Comment machinegear
Wed, 11/14/2012 - 19:37 | Link to Comment A Lunatic
A Lunatic's picture

There will never be justice via political process, with this bunch especially. You almost have to be criminally stupid to expect it...........

Wed, 11/14/2012 - 19:53 | Link to Comment Urban Redneck
Urban Redneck's picture

justice is a process, not an outcome.

Wed, 11/14/2012 - 20:06 | Link to Comment Zero Govt
Zero Govt's picture

it's a bit of both

Wed, 11/14/2012 - 19:37 | Link to Comment nmewn
nmewn's picture

I'll see your Benghazi SexGate coverup and raise you a billionaire Corzine.

Wed, 11/14/2012 - 19:39 | Link to Comment A Lunatic
A Lunatic's picture

Just in case Sexgate isn't big enough there's always the WAR in Israel............

Wed, 11/14/2012 - 20:04 | Link to Comment nmewn
nmewn's picture

Yeah, I saw that...I guess they got tired (lack of sleep) from the constant barrage of missles coming over the border from Gaza.

I get cranky when that happens too ;-)

Wed, 11/14/2012 - 19:47 | Link to Comment Rearranging Dec...
Rearranging Deckchairs's picture

Since most Rancher's I know are well stocked in the firearm department, I am still not quite sure why we haven't seen any stories of ranchers who lost their life savings stalking the squids in NYC and gunning em down.

Not saying I condone violence but still shocked no one has done it. I wonder how much he pays his security detail?

 

Wed, 11/14/2012 - 19:40 | Link to Comment Yen Cross
Yen Cross's picture

 Now Corzine can go bury himself in the 'Belize' sand, with his pal Mc Afee...   F#&king PARASITE!

Wed, 11/14/2012 - 19:42 | Link to Comment CaptainObvious
CaptainObvious's picture

The Dems on the committee didn't sign off because they think that the Exalted Leader is probably going to offer Corzine the Secretary of the Treasury post.  Timmy apparently wasn't making our tax dollars disappear fast enough, so they're calling in the real expert.  Obummer's creating jobs all right...jobs for former senators, who desperately need jobs. They can't live on insider trading alone, folks!

Wed, 11/14/2012 - 19:48 | Link to Comment Bastiat
Bastiat's picture

Here's what these crooks did to farmer friend of mine who had a cash balance and no open position:  sent him a rubber check, then sent him account statement showing zero balance.  So he became a general creditor.   Criminal filth.  Nobody gets it or cares -- maybe the fraud's become so systemic that people are numb to it -- just like the $trillions in bailouts and debt, war crimes and nullification of the Bill of Rights.

Wed, 11/14/2012 - 19:52 | Link to Comment Radical Marijuana
Radical Marijuana's picture

The MF Global story was the most symbolically significant one from 2011.

It looks like the Corzining of client money shall live on in history, like the phrase Ponzi scheme does. Although, in aboslute magnitide, the MF Global story was trivial, it still was very symbolically important! Of course, as bigger things get much worse, much faster, that story will probably become insignificant. At the time, it seemed an enormous and unpredictable step that segregated funds could just vaporize. However, given the exponentially accelerating rates at which financial systems are going raving MAD ??? ???

Wed, 11/14/2012 - 19:56 | Link to Comment Rearranging Dec...
Rearranging Deckchairs's picture

I think the american population largley asleep and incapable of any rational independent thought not instructed to them by the media, can't see the very simple logical extension of the fact that "segregated client funds" are not in fact segregated in any meaningful way and are thus totally un protected from institutional theft.

Some other sociopath is going to gamble with "segregated client funds" and lose them again, or even worse they will outright flee the country with the "segregated client funds"

 

If no one gets prosecuted for this it will happen next to your brokerage accounts Amerika.

Wed, 11/14/2012 - 19:59 | Link to Comment Yen Cross
Yen Cross's picture

  Public figures think they are "untouchable", all the way to the gallows...

 

 

    y/c

Wed, 11/14/2012 - 20:03 | Link to Comment Zero Govt
Zero Govt's picture

"...as long as political ideology gets in the way of pursuing and imposing justice, the Banana States of America will remain just that."

Well said. Good article in its entirety. 

Hang Jon Corzine ...and anyone he advised economically, like that after-dinner speaker and his auto-cue reader side-kick, the President

Indeed didn't the President just say in todays press conference regards the General Pretreaus mess it would "go through normal protocol" and we cannot suspend the "innocent until proven guilty" process of trial by jury?

..that's coming from a bump-them-off-without-rights tyrant US President

Wed, 11/14/2012 - 20:00 | Link to Comment Sechel
Sechel's picture

The House failed to secure an interview with Edith Obrien or consider the implications of Corzine's Sarbanes Oxley violations.

Conclusion is this is a white-wash.

Wed, 11/14/2012 - 20:07 | Link to Comment larz
larz's picture

"That this is purely a political move is glaringly obvious. It is also abhorrent, because as long as political ideology gets in the way of pursuing and imposing justice, the Banana States of America will remain just that."

 

yup

Wed, 11/14/2012 - 20:09 | Link to Comment Darkness
Darkness's picture

This reminds me why Congress has a 10% approval rating. 

Wed, 11/14/2012 - 20:16 | Link to Comment Duke of Con Dao
Duke of Con Dao's picture

if I were Corzine I'd be watching out my window Fast and Furiously!

YouTube - Adventures of the Open Road: Hamas Tough Guy Ahmed al-Jabri has a Hot Date with a Drone

Wed, 11/14/2012 - 20:24 | Link to Comment Yen Cross
Yen Cross's picture

 The rule of law/ Oooops, that Email was accidentally deleted.

   Corzine will "patronize" some narcissistic event, and "Abe Lincolns" followers will take care of business...

Wed, 11/14/2012 - 20:26 | Link to Comment loveyajimbo
loveyajimbo's picture

Who would have thought the lilly-livered libs would be the group to take over Amerika as fascist Nazis?  The rule of law is no more, Obungas executive orders and NDAA would make Hitler proud, his admistration is filled with the same characters like Goebbles (Carney), Himmler (Holder) and Goering (Clinton), Ribbentrop (Rice)... and other assorted scumbags.

Wed, 11/14/2012 - 20:26 | Link to Comment buzzsaw99
buzzsaw99's picture

The answer is simple. Never trust anyone.

Wed, 11/14/2012 - 20:47 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

corruption of the nation by corrupt gov from congress to the president to DOJ and Military and our Fed and banks is so large it becomes numbing..how can an economy recover with this evil bunch, it cannot. it can go on and on but wealth is leaving the USA each passing year that these crime lords rule. when we look at corzine today we see each and every one of the elite leaders for what they are. it sickens the soul.

Thu, 11/15/2012 - 00:20 | Link to Comment Radical Marijuana
Radical Marijuana's picture

Yeah, Buzzsaw, I agree, in principle that we should not trust anyone ... except we have no choice. If you drive on the public roads, you are forced to trust the other drivers ... to not just drive over the lines and straight into you ... Corzine's institutional theft was like that, he gets to drive a huge truck over all the little people's cars, bump, bump, bump, and the police then wave him on through ... He has the de facto right of way. Imagine what a "Mad Max" movie scene the public roads would become if there ended up being no practical enforcement of the rules of the road! Imagine that big trucks had the right away to drive over little cars with impunity!  Imagine if the traffic lights and stop signs became practically meaningless guidelines, that the big trucks could simply ignore ... except if there was another bigger truck?

NOT being able to trust anyone, which is more and more becoming the social situation, due to the runaway triumph of fraud making the most money, and then that being re-invested in more fraud, primiarly through using that fraudulently derived profit to fund the political processes, is turning the financial markets into a demolition derby ...

Not being able to trust people will systematically destroy civil society, and everyone will lose. The only reason why we had a decent standard of living was that it used to be possible to trust the vast majority of people, the vast majority of the time. Furthermore, action would be taken to stop those who had proven that they should not be trusted. Now, everything is being systematically shaken up-side down. The cartoon image of someone being turned up-side down, until all the money is shaken out of his pockets, is NOW the real world.  More and more, the runaway triumph of fraud and organized crime taking complete control over the government results in social realities becoming like absurd cartoons. It is as if we have all watched enough stupid TV make a mockery out of the laws of physics long enough until the "reality show" of politics has become a Punch and Judy Puppet show, full of outlandishly absurd events, one after another! Our political processes are now routinely based on being able to count on people deliberately ignoring the laws of physics, while going along with the ramifications of believing in one impossible story after another!

From a philosophical point of view, I have reached the point were I no longer trust anyone. However, I still regard that as a tremendous tragedy, which creates an insane world, that is madly self-destructive! After the government is totally taken over to by the best organized gangs of criminals, working behind the scenes, more and more successfully, until the whole thing becomes so painfully obvious, as in the MF Global case, the whole world becomes a mad and macabre cartoon!  Appreciating the sick humour of that is about the only consolation I have left these days!

So, Buzzsaw, I hate that you are right, that we can no longer trust anyone, and those people that we should be able to trust the most have become the ones that we can actually trust the least! Welcome to the Bizarro Mirror World!

Wed, 11/14/2012 - 20:28 | Link to Comment venturen
venturen's picture

What the heck happpen...wasn't Ben just suppose to print up the money for him?

Wed, 11/14/2012 - 20:28 | Link to Comment fuu
fuu's picture

Hey look who's on that committee...Ron Paul.

http://financialservices.house.gov/about/members.htm

Wed, 11/14/2012 - 20:30 | Link to Comment venturen
venturen's picture

Obama promotes Corzine to Treasury Sec!

Thu, 11/15/2012 - 08:33 | Link to Comment Papasmurf
Papasmurf's picture

No, Fed Chairsatan.

Fri, 11/16/2012 - 05:21 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

BULLISH!

Wed, 11/14/2012 - 20:36 | Link to Comment Cheyenne
Cheyenne's picture

"Are you gonna bark all day, little doggie, or are you gonna bite?"

http://www.youtube.com/watch?v=U0Y7brwz6fA

If House Republicans had any real balls, they'd draft articles of impeachment and pound Eric Holder into the sand for not prosecuting Corzine.

But they don't. They're secretarial bitches for their Wall Street daddies, drafting toothless reports exactly like this.

Wed, 11/14/2012 - 20:43 | Link to Comment adr
adr's picture

That wouldn't matter, there aren't enough votes for impeachment. Millions marching on Washington is the only hope now.

Demands are:

Any sitting representative must resign

All EBT cards are to be cancelled

Only citizens with two forms of ID may vote in the new election

Three debates will be scheduled for a new presidential election

No political ads will be allowed, period

Any organization found advertising for any political candidate will be fined $100 million for each occurance

Wed, 11/14/2012 - 21:01 | Link to Comment Cheyenne
Cheyenne's picture

"there aren't enough votes for impeachment."

Oh?

"A verified complaint/resolution of impeachment filed by at least one-third (1/3) of all the members of the House shall constitute the articles of impeachment..."

http://www.congress.gov.ph/download/13th/impeachment13.pdf (p. 4:20-22).

Wed, 11/14/2012 - 20:37 | Link to Comment adr
adr's picture

Grab your torches and pitchforks!!!

Actually, grab your AR15s and C4...

Wed, 11/14/2012 - 20:43 | Link to Comment Turdy Brown
Turdy Brown's picture

Corzine/Dimon 2016!! Yeah!

Wed, 11/14/2012 - 20:44 | Link to Comment toomanyfakecons...
toomanyfakeconservatives's picture

The stupid party and the evil party dancing on the deck of the Titanic... err... Lusitania.

Wed, 11/14/2012 - 20:45 | Link to Comment Benjamin Glutton
Benjamin Glutton's picture

So the see no Wall Street evil speak no Wall Street evil Republicans finally found a partisan they are willing to pronounce guilty?

 

Why I'm shocked I tell ya, just shocked.

 

enjoy trolls.

Wed, 11/14/2012 - 20:52 | Link to Comment Azwethinkweiz
Azwethinkweiz's picture

So when do I get the rest of my funds back?

Wed, 11/14/2012 - 21:07 | Link to Comment GoldmanSux
GoldmanSux's picture

What are the names of the Democrats on the committee?

Wed, 11/14/2012 - 21:08 | Link to Comment Pancho Villa
Pancho Villa's picture

Those rotten Republicans! How dare they malign the character of the next chairman of the SEC.

Wed, 11/14/2012 - 21:21 | Link to Comment robertocarlos
robertocarlos's picture

Corzine won't see it coming out of the clear blue sky.

Thu, 11/15/2012 - 06:17 | Link to Comment noses
noses's picture

I don't think any of his victims would still have the funds to obtain a Predator or two...

Wed, 11/14/2012 - 21:25 | Link to Comment Peter Pan
Peter Pan's picture

Corzine for President !!

That should bring the whole sick show to an end.

Thu, 11/15/2012 - 06:18 | Link to Comment noses
noses's picture

Why would he want to become president? Lousy compensation, no bonus and looking at the current deficit nothing worth stealing.

Wed, 11/14/2012 - 22:14 | Link to Comment BlackholeDivestment
BlackholeDivestment's picture

...well Smokey Robbing Sons, the Vote 2 Party 666 standard of care I'm sure has nothing hidden under these sheets either. BetrayU.S. Golem Golem. A Broad investigation, of this ''Phantom of the Operation Squid Vicious'', will result in nothing but an empty account and Eastwood's Chair remaining in the closet. What a complete Turkey. The Bailout Beltway Bandits both look aspathetic as the Hellbound American's that cast votes for them and defined agreement with the zero interest black hole they call home. Err, fee fine foe Lloyd's Thumb. I smell the joke, (g)ods Country, AKA Corzine Country, land of Vapor Vipers and Volumeless Victory, is the blood of the Private's mother's dead son ...and the account of farmers small business owner etc... everyone.  

http://www.youtube.com/watch?v=oeFZXNDz7uA

Wed, 11/14/2012 - 21:39 | Link to Comment nevket240
nevket240's picture

Disgusting..

Fuck America. you clowns have financially raped and pillaged the whole world and given the world a whole new demographic class.

 Upper class, middle class, lower class and now the Corzine class.

Un-fucking-believable.

regards

Wed, 11/14/2012 - 21:58 | Link to Comment Atlantis Consigliore
Atlantis Consigliore's picture

Pornzining of America; What Me Invest? Futures?   SEC ? Regulators?  

Run!!!!   Alfred E Neuman???  bye bye!!!! 

Wed, 11/14/2012 - 22:26 | Link to Comment topspinslicer
topspinslicer's picture

It's not what you know it's who you know -- unless a pissed off investor decides to let the bullets fly. With this administration street justice is moral and necessary.

Wed, 11/14/2012 - 22:39 | Link to Comment SillySalesmanQu...
SillySalesmanQuestion's picture

Sign up here for the "We Trade In Lead Posse" to impose the criminal "dereliction of duty" of Honorable Jon.

Wed, 11/14/2012 - 22:43 | Link to Comment Seasmoke
Seasmoke's picture

I would be happy if they just that fuck abelow under the bus. I hate that POS scumbag.

Thu, 11/15/2012 - 01:27 | Link to Comment rich_wicks
rich_wicks's picture

The pathetic thing in all this is that if Jon Corzine was a Republican, it would be the Democrats that found him responsible, and the Repubilcans turning the other way.

Just a group of scumbag politicians, that's all it is - don't think this means the Republican congress scum found a principle somewhere.  These are the same dirtbags that were claiming that Bush didn't lie us into a war in Iraq.  It's just one party of complete total scumbags versus another party of complete total scumbags trying to make the other scumbag party look worse.  Flush the shit down the toilet or stew in the sewer people.

Thu, 11/15/2012 - 01:32 | Link to Comment williambanzai7
williambanzai7's picture

Here we are 1 year later. Actually four years later overall. Don't expect any change in the next four years.

Thu, 11/15/2012 - 10:21 | Link to Comment Jim B
Jim B's picture

The system is TOTALLY and COMPLETELY corrupt!  

The is NO justice for the politically connected criminals.

 

Fri, 11/16/2012 - 05:28 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

fuck it.

Corzine for VP, MillionDollarBonus_ for President.

Why the fuck not. Don't say you wouldn't be laughing. You'd be running / emigrating but you'd still be laughing.

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