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MF Global Trustee Speaks: It Was All Corzine's Fault

Tyler Durden's picture




 

In the somewhat unsurprising conclusion of former FBI Director Louis Freeh's investigation into the MFGlobal collapse, Jon Corzine's aggressive bets on European sovereign debt led to the firm's dramatic collapse. The 124 page report (below) is extensive; noting, as Reuters reports, that Corzine's single-handed "negligent conduct" contributed to the company's failure. It was also "almost impossible to properly monitor the liquidity drains... caused by Corzine's proprietary trading strategy," the report said, adding that the "glaring deficiencies" in the firm's internal reporting were, "long-known to Corzine and management, yet they failed to implement sufficient corrective measures promptly." The investigation, based on interviews with former MF Global employees, board members and the review of hundreds of thousands of documents, concludes, "The risky business strategy engineered and executed by Corzine and other officers and their failure to improve the company's inadequate systems and procedures so that the company could accommodate that business strategy contributed to the company's collapse." Obviously, Corzine has denied any wrongdoing.

Via Reuters,

Jon Corzine's aggressive bets on European sovereign debt while head of the MF Global Holdings Ltd brokerage led to the firm's dramatic collapse in 2011, according to a report by the bankruptcy trustee.

 

Former FBI director Louis Freeh acknowledged that a slow U.S. economic recovery had played a role in MF Global's woes, but he said "negligent conduct" contributed to the company's failure.

 

...

 

"The risky business strategy engineered and executed by Corzine and other officers and their failure to improve the company's inadequate systems and procedures so that the company could accommodate that business strategy contributed to the company's collapse," Freeh wrote in the 124-page report.

 

...

 

Freeh's report found MF Global management ignored the hedging recommendations of its chief risk officer, Michael Stockman, and lacked the controls to monitor its cash on a real-time basis.

 

The weak reporting system also prevented the company from knowing that cash from segregated customer accounts was being used to meet margin calls tied to MF Global's own bets on the sovereign debt of countries such as Portugal and Ireland.

 

"These glaring deficiencies were long known to Corzine and management, yet they failed to implement sufficient corrective measures promptly," the report said.

 

Freeh's responsibilities include pinpointing possible legal liabilities of the management, and the singled out the "failures" of Corzine, former chief operating officer Bradley Abelow and former chief financial officer Henri Steenkamp.

 

...

 

On Friday, U.S. Bankruptcy Judge Martin Glenn will be asked to approve MF Global's plan of liquidation. General unsecured creditors of the holding company are expected to collect between 14.7 cents and 34 cents on the dollar of what they are owed, according to court documents.

 

Full Freeh report below:

Freeh Report on MFGlobal

 

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Thu, 04/04/2013 - 14:06 | 3408974 Ancona
Ancona's picture

He needs to be found and defenestrated from a tall building.

Thu, 04/04/2013 - 14:08 | 3408992 achmachat
achmachat's picture

I see the bus hasn't left the station yet... more time to throw a bunch of them under the bus!

Thu, 04/04/2013 - 14:09 | 3408995 HulkHogan
HulkHogan's picture

Or hung from a tree.

Thu, 04/04/2013 - 14:12 | 3409012 Abraxas
Abraxas's picture

(Not aimed at Mr. Hulk) Why so many here who apparently get what's going on, still cling to ideological constructs, with  fervor of a Bolshevik. The "right" of corporation to exercise its economic power without restraint is construed by the partisans of the "free market", as a form of freedom, a political liberty implied presumably by the right of individual citizens to own and use property. An idea of Free market is not any better than Comunism.

Thu, 04/04/2013 - 14:16 | 3409040 RacerX
RacerX's picture

It's the fact that Mr. Corzine illegally used OPM (Other People's Money) as his risk capital, unbeknownst to said OP. Additionally, when he fucks the duck, he walks away--not just scot-free, but seemingly whisked away in a golden chariot.

The beef is that corzine-types don't play by the rules, get caught, and still walk away with seemingly no penalties. And wipe out everyone else in the process.

Lather rinse repeat; FNMA, BigBanks, etc etc.

I'm all for bringing back a good old-fashioned lynching for folks like him.

Thu, 04/04/2013 - 14:23 | 3409078 camaro68ss
camaro68ss's picture

Get Corzine POWNED bitchez

 

Steal Bread, go to jail for 6 months. Steal billions, get an invite to the white house to shear your secrets

Thu, 04/04/2013 - 14:31 | 3409122 negative rates
negative rates's picture

He's just a cruel jokester, pay no attention to him!

Thu, 04/04/2013 - 14:33 | 3409141 fuu
fuu's picture

Anyone seen or heard from Edith O'Brien lately?

Thu, 04/04/2013 - 14:36 | 3409159 francis_sawyer
francis_sawyer's picture

<Edith O'Brien?... she owes me money>

Thu, 04/04/2013 - 14:42 | 3409186 redpill
redpill's picture

Heads, the Hon. Jon Corzine wins.

Tails, you lose.

Thu, 04/04/2013 - 14:57 | 3409274 HoofHearted
HoofHearted's picture

Free Jon Corzine.

Oh shit. I meant Fuck Jon Crozine.

No, I haven't forgotten about you, Bernanke.

Thu, 04/04/2013 - 15:17 | 3409370 ConfederateH
ConfederateH's picture

the audacity of greed

Thu, 04/04/2013 - 16:39 | 3409694 flacon
flacon's picture

Vice President talks about an American Bank Holiday - and Jon Corzine was the saviour:

 

VP Biden says he called Jon Corzine for advice

http://www.youtube.com/watch?v=d-cLZai63GA

Thu, 04/04/2013 - 16:41 | 3409696 ihedgemyhedges
ihedgemyhedges's picture

Sniff sniff.  What's that I smell?  A pardon in January 2017?????

Thu, 04/04/2013 - 15:01 | 3409288 jeff montanye
jeff montanye's picture

In some ways, as much as I consider myself a Democrat, I would say that the most prompt and vigorous response to fraud we’ve seen in the last 20 years has been the Bush administration’s crackdown on Enron, Tyco and Worldcom following the revelations of these massive frauds earlier in the millennium. Despite campaign contributions, John Ashcroft’s Justice Department went after these people and put the resources and set up the task forces and brought them to justice, which is what we’ve not seen in the last five years.  -- jim chanos, alternet

Thu, 04/04/2013 - 15:05 | 3409320 negative rates
negative rates's picture

WHO?

Thu, 04/04/2013 - 19:13 | 3410261 bonin006
bonin006's picture

Ashcroft is the guy Bush had to fire for having too much (ie any) respect for the constitution

Thu, 04/04/2013 - 15:30 | 3409423 smlbizman
smlbizman's picture

man, i am really confused....i know freeh is one of them, and i know corzine is one of them....so it will either end were corzine is found stupid, not dishonest (wink)...or he is charged, found guilty than pardon.......their is no way he acted alone...so this is the dog and pony show that  will be presented to the stupid zerohedgers (right mario?) who have no idea how things work. and of course  we will be paying the millions upon millions of frns that it will take to prosecute and defend him with the most expensive lawyers known to man...of course i could be completly wrong

Thu, 04/04/2013 - 15:41 | 3409475 spinone
spinone's picture

I bet Freeh and Corzine are having a big laugh about it right now.

Thu, 04/04/2013 - 16:57 | 3409743 Carl Spackler
Carl Spackler's picture

Right, they shook hands and simultaneously said "well done."

Freeh then said to Corzine, got any other things I can help you with, Jonny ?

Thu, 04/04/2013 - 15:19 | 3409382 dark pools of soros
dark pools of soros's picture

zerosum... his 'loss' goes to who's gain?  the whole gang's fund on the other side of that 'risk'

 

there was no risk.. he bascially Western Union'd it to his gang of thieves

Thu, 04/04/2013 - 18:19 | 3410097 geologyguy
geologyguy's picture

& not a finger was raised by any politician. 

I hope he sticks around whatever hole he is in, because I'd take my time on that guy.

Thu, 04/04/2013 - 14:26 | 3409097 Stackers
Stackers's picture

"Dont know where the money went"

What is the punishment for Congressional perjury again ?

Thu, 04/04/2013 - 14:31 | 3409120 Bay of Pigs
Bay of Pigs's picture

Its high time to FREE JON CORZINE!

Oh wait...

Thu, 04/04/2013 - 15:14 | 3409367 Jonas Parker
Jonas Parker's picture

Yes, free from these earthly bonds so his spirit can... well... bring the burn ointment Jon...

Thu, 04/04/2013 - 15:22 | 3409389 dark pools of soros
dark pools of soros's picture

even if he goes in for a showtime jail stint he'll get pardoned in 3 years max

Thu, 04/04/2013 - 19:13 | 3410263 just a dude
just a dude's picture

Kind of like what Holder is attempting to do for Andrew Skilling, yes?

Thu, 04/04/2013 - 14:32 | 3409133 johnQpublic
johnQpublic's picture

a job at goldman sachs or other similar company, campaign fund scrounger

there are other punishments but i wont bother to list them

Thu, 04/04/2013 - 14:31 | 3409119 James_Cole
James_Cole's picture

The beef is that corzine-types don't play by the rules, get caught, and still walk away with seemingly no penalties. And wipe out everyone else in the process.

Welcome to life, see: history.

Thu, 04/04/2013 - 16:46 | 3409707 Optimusprime
Optimusprime's picture

The rules do not apply to Jews.  Had Martha Stewart been Jewish, she would never have been prosecuted.

Thu, 04/04/2013 - 21:51 | 3410686 Buck Johnson
Buck Johnson's picture

This guy used segregated accounts, he was caught essentially red handed.  He should be sharing a cell with Madoff and even Madoff is saying the banks knew what he was doing.

Sat, 04/06/2013 - 17:51 | 3417105 Blankenstein
Blankenstein's picture

He gets away with it because our idiot politicians let ass-faced bastards like Corzine call the shots for our country. 

 

http://www.youtube.com/watch?v=xm3VMrKqJSA

Thu, 04/04/2013 - 14:20 | 3409043 NotApplicable
NotApplicable's picture

This kind of scam can only happen under the blessing (read: protection) of the apparatus of state. A free-market would've blown any entity acting "without restraint" out of the water long before this level of damage could ever be achieved.

You seem to forget that the right of corporation is also a privilege of state.

As for the "why do we hold such convictions?" There's this thing called ethics and morality that absolutely depend upon people having free choice to exercise. Take away any freedom under the guise of protection, and it instantly corrupts the entire system, protecting those who hold power over it.

Thu, 04/04/2013 - 14:19 | 3409063 Abraxas
Abraxas's picture

Not a big fan of governments, either.

Thu, 04/04/2013 - 14:27 | 3409105 Pure Evil
Pure Evil's picture

And, now, if we could only get to the bottom of 9-11 and the collapse of Bld. 7 as succinctly.

Thu, 04/04/2013 - 14:34 | 3409155 James_Cole
James_Cole's picture

This kind of scam can only happen under the blessing (read: protection) of the apparatus of state. A free-market would've blown any entity acting "without restraint" out of the water long before this level of damage could ever be achieved.

You've got to get your definition of free market narrowed down. As you go on to say...

You seem to forget that the right of corporation is also a privilege of state.

Under what system are you advocating 'free market' economics? Usually in the US when someone is talking about 'free markets' they are referring to as-associated with capitalism. Capitalism is a state-based system. 

If you're talking about free markets under some sort of anarchy based system you're talking a very very different thing. 

Thu, 04/04/2013 - 15:24 | 3409400 Squiddly Diddly
Squiddly Diddly's picture

1.6 billion rounds of "practice ammunition" says it ain't gonna happen.

Fri, 04/05/2013 - 18:32 | 3414535 ich1baN
ich1baN's picture

The idea of "crony" capitalism is no better than Communism. 

A truly functioning free-market does not have MFGlobals and PFGBest's occuring at heartbeat frequency.

Yes, it is true in a free-market that frauds can happen, but that is a reflection of the mores of the time and of the ability of people who are supposed to be held reponsible. 

What is different from a free-market and a crony-capitalist market is that in the free market, people like Corzine would be found guilty and the maximum allowable punishment would be enacted to prevent further frauds of this nature from happening.

Corzine was the product of a vast and swift revolving-door. It seems the guys pushing this door the most are the ones responsible for the majority of financial crimes committed in a crony capitalist system.

A return to sound money, glass-Steagall, and commitment to budget surpluses with a fair-flat tax environment would ensure the best functioning free-market without the luxories enjoyed by the top banking elites and plutocrat class that can script their destiny through the ink of a pen or a click of a button. 

Thu, 04/04/2013 - 14:16 | 3409024 hedgeless_horseman
hedgeless_horseman's picture

 

 

All this about Corzine is probably true.  However, it does not change the fact that receivers, trustees, judges that appoint them, and lawyers for the receivers and trustees are all members of the absolute lowest form of racket on the planet.  The customers and shareholders of MFGlobal will likely never see a dime of their money due to this racketeering.

Thu, 04/04/2013 - 14:18 | 3409049 ParkAveFlasher
ParkAveFlasher's picture

Don't forget the cops who protect them and the judges that turn the other cheek.

Thu, 04/04/2013 - 14:27 | 3409100 Dr. Venkman
Dr. Venkman's picture

I resemble that remark! (+1 for you anyway)

Thu, 04/04/2013 - 14:17 | 3409044 Vashta Nerada
Vashta Nerada's picture

Wouldn't you know they blame it on the guy who has a get out of jail free card.

Thu, 04/04/2013 - 17:44 | 3409988 asteroids
asteroids's picture

Would anyone shed a tear? No, I bet everyone on ZH would cheer.

Thu, 04/04/2013 - 14:08 | 3408997 krispkritter
krispkritter's picture

124 pages to say GUILTY!?  

Thu, 04/04/2013 - 14:20 | 3409060 tickhound
tickhound's picture

 

 

Guilty?  SHEEEEit.  Apparently many here including the trustee DON'T UNDERSTAND...

Corzine is within the inner circle of the PRIESTHOOD.  Therefore, he's untouchable.  A fucking HERO to the religion.  He communes with PONZI.

Writing your congressman DOES NOT MATTER. 

12 reasons why... 

1.  He's a former Goldman CEO

2.  Former US Senator

3.  Former US Governor

4.  Friends in the CFTC

5.  Friends in the SEC

6.  Friends at the FED

7.  His crime involves stealing over $1,000,000,000... "Felons" steal much less.

8.  His crimes are too complicated for average citizens to understand

9.  Wealth transfer is only deemed outrageous when the lower class is the recipient

10.  An investigation that runs too deep could disturb markets

11.  A lead Obama fundraiser

12.  And he's .............

 

Thu, 04/04/2013 - 14:38 | 3409172 francis_sawyer
francis_sawyer's picture

FREE...

~~~

Unless you want him as a guest at your kids Bar Mitzvah... That'll cost ya...

Thu, 04/04/2013 - 15:43 | 3409482 spinone
spinone's picture

........in the tribe, I know, I know.

Thu, 04/04/2013 - 16:26 | 3409629 flacon
flacon's picture

Corzine claims that his ancestors were Italian and French. 

Thu, 04/04/2013 - 16:32 | 3409665 francis_sawyer
francis_sawyer's picture

...and?... That changes anything?...

Thu, 04/04/2013 - 20:24 | 3410447 Miffed Microbio...
Miffed Microbiologist's picture

Actually tickhound, the key point in your list lies with number 8. This is why there is no justice and why that man will walk with complete impunity until his death. An alive sentient population would never allow such a deeply depraved individual escape punishment. There lies the rub. Unfortunately to wake up people today one must resort to extreme measures: starvation, homelessness en mass, in your face FEMA camps etc. This seems unlikely in the near future. The few who are awake are just to few to make any meaningful change. The masses have the numbers but they have relinquished their powers long ago.

Yesterday I accidently left the door open to my chicken coop and coyotes had run off with 4 of my laying hens. Furious I grabbed my rifle, tossed a hen outside the coop and angrily laid in wait for them to show up again so I could blow them away. After 2 hrs shivering in the cold I finally came to the conclusion that I was being an idiot. There will always be coyotes out there waiting to take advantage of an opportunity. That is just the nature of a coyote. It simply, by its nature, will never respect my property. The fault lay with me for failing to close the gate to the coop. That's not to say if I had caught them in the act and had a weapon I wouldnt have shot them. I think knowing the nature of the beast (bankster) and protecting oneself against their insatiable lust for power and money is more effective at the present time.

Miffed;-)

Thu, 04/04/2013 - 14:24 | 3409088 McMolotov
McMolotov's picture

They left out the part that says, "Mr. Corzine could not be reached for comment because he was blowing through millions of dollars while molesting small boys in Thailand."

Thu, 04/04/2013 - 14:53 | 3409241 Dr. Venkman
Dr. Venkman's picture

Seems more like 124 pages to limit claims against Corzine to those of a civil nature -- the lawyers might be gearing up for a breach of duty case against Corzine -- which is nearly impossible to win on these days. . . but fees are fees.

Thu, 04/04/2013 - 14:13 | 3408996 Banksters
Banksters's picture

Any news on the rehypothecation of peoples money and other assets?

 

Quite a trick that is, eh?  

Dear sir, we regret to inform you that your funds have been appropriated to cover Jon Corizine's bad bets.  As you may know, Mr. Corzine is a political insider who  has bundled large amounts for President Obama.  Therefore, you have a snowballs chance in hell of ever being remunerated.   That is all.

 

 

Thu, 04/04/2013 - 14:17 | 3409048 eatthebanksters
eatthebanksters's picture

Perhaps they can re-hypothecate Mr. Corzine's personal fortune to the people he ripped off?

Thu, 04/04/2013 - 14:10 | 3409002 DJ Happy Ending
DJ Happy Ending's picture

Louis Freeh is a sociopathic POS.

His eyes look darker and more evil than Boris Karloff, who was a very nice man, BTW.

Thu, 04/04/2013 - 14:13 | 3409031 Schmuck Raker
Schmuck Raker's picture

Freeh Jon Corzine!

Thu, 04/04/2013 - 15:31 | 3409425 spanish inquisition
spanish inquisition's picture

As an "independent" investigator, his job is to put his name on the bottom of a report written to lend an air of credibility and protect those above the level of his investigation.

Thu, 04/04/2013 - 14:13 | 3409025 Number 156
Number 156's picture

He's not going anywhere.

And If he does end up in some posh white collar prison/country club, He will be one of the first people Obama will pardon when his term is up. 

Its actually better to leave him alone until just before the statute of limitations runs out, so that his imprisonment will be AFTER all the pardons are signed off.

Again, its a on the premise of a big IF.

 

 

Thu, 04/04/2013 - 14:31 | 3409134 Grinder74
Grinder74's picture

Does no one own any rifles with scopes anymore?

Thu, 04/04/2013 - 18:53 | 3410207 cynicalskeptic
cynicalskeptic's picture

someone just go on the 'domestic terrorist' list.........   you can't SAY it and even thinking it may be risky these days

Thu, 04/04/2013 - 16:17 | 3409600 swani
swani's picture

There is no such thing as a white collar prison/ country club. Federal Minimum or no security is still prison and it sucks. Corzine is not going to prison.  

Thu, 04/04/2013 - 14:18 | 3409058 Stuart
Stuart's picture

Couldn't agree more... and it should be a long and drawn out, not quick and painless. 

Thu, 04/04/2013 - 15:38 | 3409459 wee-weed up
wee-weed up's picture

Anyone know where this scumbag is hiding out?

Who's providing him cover?

Thu, 04/04/2013 - 17:36 | 3409939 Lugnut
Lugnut's picture

Found? the dude still has his condo in Hoboken. He aint hard to find. He is hard to convict though.

Thu, 04/04/2013 - 14:06 | 3408978 Loretta8
Loretta8's picture

It was Corzine's fault?!?! No way....

Now put the motherfucker in jail where he belongs.

Thu, 04/04/2013 - 14:11 | 3409013 NotApplicable
NotApplicable's picture

Never happen. Freeh gave him a get out of jail free card with the inclusion of this...

The weak reporting system also prevented the company from knowing that cash from segregated customer accounts was being used to meet margin calls tied to MF Global's own bets on the sovereign debt of countries such as Portugal and Ireland.

Tell me, just what is the crime of implementing weak control systems? Even if he deliberately dismantled formerly strong systems, they'd still have to prove intent.

As always, "plausible deniability" FTW!

Thu, 04/04/2013 - 14:18 | 3409055 eatthebanksters
eatthebanksters's picture

Ok, then how about a walk in the river with cement shooz?

Thu, 04/04/2013 - 15:41 | 3409472 Squiddly Diddly
Squiddly Diddly's picture

Paging William K Black

Thu, 04/04/2013 - 16:35 | 3409674 Real Estate Geek
Real Estate Geek's picture

Too bad Luca Brasi can’t be conjured up for one last job.

Thu, 04/04/2013 - 14:06 | 3408981 prains
prains's picture

M F 'n BITCHEZ !!

Thu, 04/04/2013 - 14:08 | 3408989 malikai
malikai's picture

The great heoric patron saint was just wrong.

..and a good bundler.

Thu, 04/04/2013 - 14:07 | 3408991 asscannon101
asscannon101's picture

Strap him to a heavy chair, shave his head and beat him to death with a soup ladle. It will take days and we will have to work in shifts, but it will be worth it.

Thu, 04/04/2013 - 14:10 | 3409009 cougar_w
cougar_w's picture

It will take a lot longer if you beat him instead with a roll of papertowels. I'd go with that.

Thu, 04/04/2013 - 14:16 | 3409037 prains
prains's picture

if you go with both the pinging of the soup ladle combined with the base effect of the paper towels could be "musical"

Thu, 04/04/2013 - 14:16 | 3409041 fuu
fuu's picture

I say socks filled with the various commodities his clients owned before he blew them up. One for silver, one for gold, one for corn, etc.

Thu, 04/04/2013 - 14:20 | 3409071 krispkritter
krispkritter's picture

How about a steer?

 

Thu, 04/04/2013 - 14:30 | 3409109 fuu
fuu's picture

Just use the tail, or a bull pizzle.

Thu, 04/04/2013 - 14:21 | 3409077 Temporalist
Temporalist's picture

How does one fit a cattle in a sock?  Hmmm...

Thu, 04/04/2013 - 17:02 | 3409781 Carl Spackler
Carl Spackler's picture

Just make the sock bogger.

I think a frozen pork bellie would be more effective.

Thu, 04/04/2013 - 14:30 | 3409115 prains
prains's picture

had a buddy years ago who "rookied" a bunch of guys asleep in their hotel room beds by beating them with a giant shit filled sock, one guy was so drunk he didn't wake up until the next day to find himself cuddling up to the same shit filled sock. infamous

Thu, 04/04/2013 - 14:34 | 3409145 Grinder74
Grinder74's picture

How about just sticking a corncob up his cornhole?  Then he can get the added benefit of claiming he's "gayly married" and conjugally visit himself.

Thu, 04/04/2013 - 14:09 | 3408993 catacl1sm
catacl1sm's picture

Where are the handcuffs?

Thu, 04/04/2013 - 14:10 | 3408999 dbarrett
dbarrett's picture

It was all Corzine's fault! Why is he still walking around a free man? MF Global clients only got 72 cents on the dollar....they should sue Corzine personally for the balance and bankrupt the corrupt bastard! All that gold people would have bought by demanding delivery (just ask Gerald Celente). Anyway.....we all have to be thankful for today's (and everyday's) Gold Price Girl!

http://www.gold-price-girls.com/

Thu, 04/04/2013 - 14:13 | 3409015 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

I'm sure Corzine got some good dirt on them bastards. I think a good interogation is in order for him. I'd bet you he'd sing like a canary with a little coaxing. In a non-violent way of course.

Thu, 04/04/2013 - 14:15 | 3409039 dbarrett
dbarrett's picture

Gerald Celente should be the first to get a crack at him. 

Thu, 04/04/2013 - 15:41 | 3409477 dick cheneys ghost
dick cheneys ghost's picture

Some forecaster Celente is.........btw, he gets all his material from ZeroHedge

Thu, 04/04/2013 - 14:10 | 3409000 oleander garch
oleander garch's picture

There is no consequence for crony capitalist crimogenic behavior.  Bow down to his Randian moral superiority as measured by his wealth.  He just went Galt.

Thu, 04/04/2013 - 14:10 | 3409001 colin
colin's picture

he did it

Thu, 04/04/2013 - 14:09 | 3409003 cougar_w
cougar_w's picture

"The risky business strategy engineered and executed by Corzine and other officers and their failure to improve the company's inadequate systems and procedures so that the company could accommodate that business strategy contributed to the company's collapse."

There, Corzine! Put that in your pipe and smoke it!

I hope he feels really bad. I hope he cries.

/s

Thu, 04/04/2013 - 14:09 | 3409004 oddjob
oddjob's picture

If ugliness was money he would be giving it away ,not stealing it.

Thu, 04/04/2013 - 14:11 | 3409005 GoldRetriever
GoldRetriever's picture

Yet Corzine continues to hold his Stay Out of Jail "Freeh" card.

Thu, 04/04/2013 - 15:59 | 3409542 Jugdish
Jugdish's picture

Isn't Freeh the same piece of shit who covered up the Sandusky pedophile ring in Penn State? The one where the DA went missing after looking into allegations of boy rape years ago ? I don't know, I could be mistaken. Maybe the boy loving faggots that hold the reins of power really don't like young boys assholes.

Thu, 04/04/2013 - 14:10 | 3409007 dobermangang
dobermangang's picture

The fact that this guy is a free man shows what a banana republic the USA has become.

Thu, 04/04/2013 - 14:13 | 3409028 cougar_w
cougar_w's picture

You guys keep missing the point that all he did wrong was fuck up at business. His clients were investors, is the logic, and they should have diversified.

That's not my personal opinion. That's the way it's being handled. As we are seeing now with bank deposits, everyone is now an investor and all funds in any vehicle are at 100% risk.

Thu, 04/04/2013 - 14:19 | 3409054 kaiserhoff
kaiserhoff's picture

Well said Cougar, which is why the velocity of money is dropping like a rock.

How did that other Great Depression get started again???

Thu, 04/04/2013 - 14:21 | 3409069 eatthebanksters
eatthebanksters's picture

Tell that to te people with money in the segrated accounts that he used!

Thu, 04/04/2013 - 14:38 | 3409168 cougar_w
cougar_w's picture

The people who lost money have already been told all this. They are now in line with the rest of the creditors trying to pick something from the carcass, maybe in 10 years they'll get $.05 on the dollar.

This is all now financial history. Nobody is going back to change it. I said at the time that this would be a model for future pillaging, we see it at play in Cyprus, the ball is rolling and we'll see it again somewhere unexpected very soon. We might even see a US law passed that makes bank deposits 100% at risk despite deposit insurance. Savers could and probably will lose 100% of deposits.

This is the model. This is how they will do it. Just walk in and take the money. All the money, all at once, without negotiations of any kind, and you can sue everyone if you want afterwards with any money you have left. The lawyers will love it.

It's really depressing. I don't know what to do.

Thu, 04/04/2013 - 15:14 | 3409363 Honey Badger
Honey Badger's picture

What to do?  Keep stacking...and stay away from boats.

Thu, 04/04/2013 - 15:19 | 3409380 sdmjake
sdmjake's picture

Folks I knew that were using MFGlobal have gotten back about .83 cents on the dollar. (Sold their claims to the legal sharks to fight for the rest)

just sayin...

Thu, 04/04/2013 - 14:12 | 3409010 hedgelessWhoresMan
hedgelessWhoresMan's picture

The corrupt government and this corrupt scumbag disgust me to no end.

Thu, 04/04/2013 - 14:13 | 3409016 SmallerGovNow2
SmallerGovNow2's picture

Caught by his wife, butt ass naked with another woman, in bed and his wife calls him on it and he says "wasn't me" while the woman quickly covers herself and leaves the room...

Thu, 04/04/2013 - 14:13 | 3409026 Bastiat
Bastiat's picture

This is not the husband you were looking for . . .

Thu, 04/04/2013 - 14:12 | 3409018 FIAT
FIAT's picture

And just who did the episcopalian who looks more like a rabbi than any rabbi buy "from"?

Who was/were the counterparties the trojan horse benefacted? 

Thu, 04/04/2013 - 14:13 | 3409019 Bastiat
Bastiat's picture

How about sending account holders a rubber check then sending them a zero balance account statement?  Bingo! Instant general creditor.  Fucking crooks.

Thu, 04/04/2013 - 14:13 | 3409022 Temporalist
Temporalist's picture

Corzine's "proprietary trading system" = sheep shearing/muppet mowing = sanctioned theft

I bet Criminalzine's ears are thouroughly sore from the vicious boxing they've taken; just vicious.

Thu, 04/04/2013 - 14:17 | 3409030 fuu
fuu's picture

Pretty sure we all knew he was guilty on day 1. Maybe day 2.

Thu, 04/04/2013 - 14:15 | 3409033 Watts_D_Matter
Watts_D_Matter's picture

These fuckin cock suckers needed 174 pages to tell me that...that fuckin fuck Corzine was behind the collapse of MF Global...You should have called me first...and I could have saved you lots of time Louie Freeh...And Corzine you fuckin fuck....You old bastard...I hope you have a heart attack when you jerk off!

Thu, 04/04/2013 - 14:15 | 3409036 CEOoftheSOFA
CEOoftheSOFA's picture

Corslime should hang in the electric chair for what he did to MF Global and New Jersey.

Thu, 04/04/2013 - 14:31 | 3409121 Big Corked Boots
Big Corked Boots's picture

The problem with that is half the people in Jersey would vote him back into the Senate or Drumthwacket.

How I wish he had screwed some of the local mobsters... they know how to handle the situation.

Thu, 04/04/2013 - 14:18 | 3409042 The Dancer
The Dancer's picture

This administration is nothing more than a bunch of street thugs! See, "you's got to pay to play!" There's no telling how much payola this bunch is collecting not to prosecute known criminals! Mobsters, that's all! But, what are any of ya going to do about it...nothing! Go ahead and face it...Obama was right when he said that "whitie" was a coward...or did you conveniently forget that....very conveniently, I'd say...

Thu, 04/04/2013 - 14:26 | 3409092 NotApplicable
NotApplicable's picture

This administration? LOL WUT?

Why do you focus on such tiny non-players? The best claim these people can make is that they are the best puppets money can buy.

Thu, 04/04/2013 - 14:19 | 3409051 dbTX
dbTX's picture

And Obama put Jack Lew in at Trteasury, when Biden's financial mentor, Corzine was available. Go figure.

Thu, 04/04/2013 - 14:20 | 3409059 Dineroguru
Dineroguru's picture

Quick:  Throw the crooked bastard under the bus, back up do it again, the repeat!

Thu, 04/04/2013 - 14:21 | 3409064 apberusdisvet
apberusdisvet's picture

The optimum penalty for Corzine should be a slo-mo disembowelment via roto-rooter.  A definite pay-per-view winner.

Thu, 04/04/2013 - 14:20 | 3409065 GrinandBearit
GrinandBearit's picture

A public beating and hanging it too good for this scumbag.

Thu, 04/04/2013 - 14:21 | 3409066 Voamerica
Voamerica's picture

This guy started trading bonds with Goldman back in the 80's, when interest rates were 15%. When rates were

dropping from 15 to 7, how smart do you have to be to make money trading bonds? Everyone thinks he is

so smart. He was very lucky, not smart. Look what he accomplished after that. Senator(see any debt declines

under his term?) Gov. of New Jersey(took a bad state and made it worse, many times over) And then

MF Global(dumb trading decisions, i should say delusional trading decisions, and MF go poof!)

So, this so called smart guy, is really dumb, dumb and dumber than all the rest.

 

Madame LaFarge had the right idea in Tale of Two Cities(guess what that was?)

VO

Thu, 04/04/2013 - 14:21 | 3409068 astoriajoe
astoriajoe's picture

realizing that this is a bankruptcy court document, the word criminal doesn't appear once.

Civil only appears once.

Illegal appears once to say that FTI is not looking for illegal acts.

 

Thu, 04/04/2013 - 14:21 | 3409070 paint it red ca...
paint it red call it hell's picture

So now what for corzine, mayor NYC or Chicago? Imminently qualified...

Thu, 04/04/2013 - 16:17 | 3409593 earnyermoney
earnyermoney's picture

I hear NJ needs a Democrat to run against Chris Christie now that cory has decided to run for Senate.

Thu, 04/04/2013 - 14:20 | 3409074 dobermangang
dobermangang's picture

Obama's going to get a serious case of carpal tunnel syndrome when he starts signing all those pardons in 2015.

Thu, 04/04/2013 - 15:57 | 3409523 Urban Redneck
Urban Redneck's picture

Wouldn't someone have to be convicted first in order to be pardoned?

As long there is a human lawn-jockey running DOJ how is there anyone to pardon (and wear down his limp wrist)?  Unless he starts releasing the handful of kleptocrats imprisoned by the Bush DOJ. 

Thu, 04/04/2013 - 17:14 | 3409840 Umh
Umh's picture

Q: Wouldn't someone have to be convicted first in order to be pardoned?

A: No. Ford pardoned Nixon for anything he may have done.....

Thu, 04/04/2013 - 14:23 | 3409085 Duke Dog
Duke Dog's picture

Nobody thinks that the timely reporting of Skilling's early release has anything to do with the release of the Trustee's findings, do they? John, we need you to do a little time - don't worry, we'll treat you good and let you go once the smoke clears.

Thu, 04/04/2013 - 14:29 | 3409110 NotApplicable
NotApplicable's picture

Actually I think it's the other way around. Skilling is back on the front page so everyone doesn't notice the white wash by one Mr. Freeh.

Read through that report again. From my searching, there isn't a single instance of criminal activity alleged. Instead it's all "poor management decisions."

In other words, it's fodder only for civil suits by investors of MFG.

Thu, 04/04/2013 - 14:27 | 3409098 tradertim
tradertim's picture

I guess it doesn't make any difference anymore whether you've been Cyprus'ed or Corzined. As long as you're either well connected or the IMF, it's not really stealing.

Thu, 04/04/2013 - 14:28 | 3409103 Joebloinvestor
Joebloinvestor's picture

DUH.

They didn't even take away his broker license.

Talk about rubbing the victims noses in it.

Thu, 04/04/2013 - 14:30 | 3409117 NotApplicable
NotApplicable's picture

No crimes have been alleged, let alone charges filed.

Thu, 04/04/2013 - 14:32 | 3409113 FIAT
FIAT's picture

who did the jew buy from?

"jews" really have no limits, no boundaries.  They are a race cult of sociopaths masquerading as a religion.

They are immoral criminals who destroy everything and build nothing.

Thu, 04/04/2013 - 14:37 | 3409169 Peter Pan
Peter Pan's picture

If you have a few names of such Jews then I also have a few names, but your statement is far too broad and indscriminate as to make it unfair on the many decent Jewish people. Moreover it leaves out top class psychopaths like Cheney, Rumsfeld, Tony Blair etc etc.

Thu, 04/04/2013 - 15:05 | 3409319 Black Markets
Black Markets's picture

 

Eugenics was tested by the free market (in an ideological world war) and eugenics lost.

 

Which is why ever since WWII racist thinking has been understood to be a weakness.

 

Traits are possessed by individuals and not groups. If every rich man is a white man it does not mean every white man is a rich man.

Thu, 04/04/2013 - 14:32 | 3409128 Peter Pan
Peter Pan's picture

The time has come given that there is no technology constraint, to demand that all financial institutions install black boxes through which all transactions of financial institutions must pass and be recorded.

Ths will surely make prosecution much easier and in fact it will lessen wrongdoing given that the audit trail will be much clearer.

Thu, 04/04/2013 - 14:32 | 3409132 Stud Duck
Stud Duck's picture

Lets look at this a little closer. Was not this Louis Freeh the same guy that shveled dirt/did most of the cover up of what really happened at Ruby Ridge???

So you really expect this guy to nail Corzine??? I am snicker aat you ignorance!

Someone needs to get the balls and take this fuck on the one way ride he deserves. You know, the Jimmy Hoffa ride!

I have no intention, I did not lose any money, but if it was my 1/2 million he stole, well I would be a little more hard nosed about it. Fuck him, fuck the horse he rode in on, and fuck the dog following the horse! The rest of the fuckers that are letting him get away with it deserve the same rone way ride!

Thu, 04/04/2013 - 14:53 | 3409247 LawsofPhysics
LawsofPhysics's picture

Exactly, i'll only add that if someone lost that much and did not take a concrete or covert action to insure that Mr. Corzine suffers some real consequences, then they came into that "wealth" without having to really work for it and probably never really deserved it to begin with.  Go ahead, steal just a few thousand from the right person or persons and see what happens.

Thu, 04/04/2013 - 19:02 | 3410233 Quantum Nucleonics
Quantum Nucleonics's picture

It should be noted that Freeh is the trustee of the holding company.  He has no authority to bring any criminal charges.  His only recourse is to sue individuals on behalf of MF's creditors.  Also, MF's clients ultimately got their money back, IIRC.  Any criminal cases would need to go through the CFTC, SEC, or Justice Department, and good luck with that with Team Obama and Chicago, Inc. running the show.

Thu, 04/04/2013 - 14:34 | 3409150 Catullus
Catullus's picture

This Cyprus story is getting old.

Oh. This is MF Global. Totally different

Thu, 04/04/2013 - 14:40 | 3409182 Peter Pan
Peter Pan's picture

Nothing is old for as long it is a festering wound without the wrongdoers being having been punished.

Thu, 04/04/2013 - 15:08 | 3409326 Catullus
Catullus's picture

Indeed.

Betting on euro bonds and then your depositors taking a haircut is starting to look like a theme

Thu, 04/04/2013 - 14:44 | 3409191 newworldorder
newworldorder's picture

How can this report be so?

Corzine is the greastest financial mind that our President and Vice President rely on for economic advise. How can a man who has raised so much money for this administration and other democrats, be so villified.

Is there no way to protect this mans reputation? Cant our Attorney General do something to shield him from our contempt? Where is the outrage within the Jusctice Department?

Thu, 04/04/2013 - 14:44 | 3409205 CharliePrince
CharliePrince's picture

where and when will this thief  surface next

Thu, 04/04/2013 - 14:55 | 3409256 RichardENixon
RichardENixon's picture

I heard Bernanke is thinking about running for the exit soon, with Corzine's credentials he would make a stellar replacement.

Thu, 04/04/2013 - 14:47 | 3409217 LawsofPhysics
LawsofPhysics's picture

Interesting, and yet Corzine walks free.  Bye, bye dollar!  When fraud is the status quo, possession quickly becomes 100% of the law.

Thu, 04/04/2013 - 14:47 | 3409218 realitybiter
realitybiter's picture

Clearly, there will be no justice.  I just a check from the trustee that makes me 89% whole.  The balance is coming, they say.

I said, in print, the weeks after this a-hole stole from me that they would drag this out until people got bored, print the money to repay everybody so no one could argue damages, and he would not go to prison.

I never signed away my rights to sue, and I understand that a class action suit will happen.  Can't wait, beeyatch.

I ask that everyone quit using the word shit.  Replace it with Corzine.  "You are a stinking pile of Corzine"  "Dude. I just took the world's biggest Corzine."  Same with the f-bomb.  "I got so Cozined"  "That guy is a real Corziner.  Never trust him."

 

And after your morning Corzine, please wash your hands with warm, soapy water.  You don't want to Corzine in everyone's food, or shake their hands with Corzine on yours.

 

Thu, 04/04/2013 - 14:50 | 3409233 Clowns on Acid
Clowns on Acid's picture

Oh yeh...Jon Corzine...I kinda remeber him ....it was nice of Freeh to release the report 1.5 years later...y'know in between the Korean nuke "crisis" yesterday and the Mario "lotsa political capital invested" news cinference today.

Hey could Scott ask Freeh some Corzine questions from the ZH crowd ?

Thu, 04/04/2013 - 14:59 | 3409277 RougeUnderwriter
RougeUnderwriter's picture

Great - Let's put him in charge of Obamacare now

Thu, 04/04/2013 - 14:59 | 3409281 loveyajimbo
loveyajimbo's picture

Since Obunga and his dick-boy "Roach" Holder are part of the massive corruption... I hope some small group of MF Global screwees takes it into their own hands and metes out justice to Corzine... in a most ghastly fashion... the need for direct action is growing all the time...

Thu, 04/04/2013 - 15:00 | 3409285 q99x2
q99x2's picture

The individual States need to go after Eric Holder and bring him to justice. I mean Holder. And, then go after Corzine.

Thu, 04/04/2013 - 18:23 | 3410113 Trampy
Trampy's picture

Nonsense.  Holder is just a messenger boy sent by a grocery clerk. 

Impeach Obama and then try him for treason right here.  Then try him and all his junta in Brussels for their genocide and war crimes.

Thu, 04/04/2013 - 15:02 | 3409296 Seasmoke
Seasmoke's picture

Honorable

Thu, 04/04/2013 - 15:03 | 3409304 Atlantis Consigliore
Atlantis Consigliore's picture

VONCEs...ALL VONCES....ALL IN ON IT. 

Thu, 04/04/2013 - 15:08 | 3409327 The Dancer
The Dancer's picture

I just have one question,"How does 1% of the American population get to where they CONTROL the movie industry, Wall Street, the FED, the Treasury, the banks, etal?" Are they  really that much smarter than the rest of us, or is there not a mafia organization that has taken the entire Western World into it's clutches! Yes, they are quite intelligent as a group...but not one that I've ever known was a happy human being. And every poll that I've ever seen shows that the wealthiest among them are the most miserable among us. From my experience, those polls are accurate. If they weren't such arrogant bastards I'd feel some pity for them. But every one of them that I've known made that nearly impossible. Freud himself called mental illness "The Jewish Desease." At least, that what is told...I wasn't there.

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