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MF Global Trustee Speaks: It Was All Corzine's Fault
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.
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.
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"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.
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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.
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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:
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Your statements are antisemenetic and therefore they don't count. The protocols are not true and the torah thinks highly of the goy. Now quiet, and prepare for the arrival of your soon to be coming king.
The Torah says the goy are there to pay retail.
was MF GLobal a public company?
It looks like we are going to have an all Goldman Sachs MMA cage match between Mark “Brutal Reckoning” Carney and Mairo “Whatever it Takes” Draghi. Learn more about the Bashup in Brussels. http://tinyurl.com/c4dlrdt
Eric Holder will make sure the Just-Us system will protect him.
The Just-Us system is run by the criminals now.
I don't want Corzine in jail. I want him in a Zoo. I want 24/7 live streaming of his enclosure. I want special announcements about feeding time. I want to go over to his enclosure and throw peanuts and popcorn at him. I want informative graphic displays near his habitat that describe his behavior along with photos of his offspring. The display should include photos of each of his victims and how much was stolen from each of them.
Negligent reallydoesn't cut it, does it? And the Trustee was head of our biggest crime-busting operation? Say again?
corzined bitchez
Are the account holder categorized as "unsecured creditors?"
so what about Sarbanes–Oxley ??
Ahh not so fast grasshopper....if you are one of the chosen laws do not refeer to you huh jon boy...i guess kozloski, ebbers and those guys were worse than you huh....
F U fraud is fraud
Its FRAUD only if you are a small business with no "political godfather" connections. If you have those connections however, the law does not apply to you. You can pilage at will.
I wonder how many of the poor soles that lost their life savings in MFG will be 'looking' for him?
I'd give your left arm that there a lot of them, would you like to contribute more??
to report writers: No duh!
Well I guess that we will now find out just how corrupt things are. If this guy can continue walking past the judicial system then get all of your money out of every bank. Rule of law is done.
So did the small people end up getting their money back.
Or are they all just walking around with significantly looser balloon knots.
The impotent rage that is building inside me, day after day, as I learn about the unpunished misdeeds of the so-called elite, is sure to be burning inside hundreds - if not thousands - of others. We don't need to make up punishments; we have them, on the books, specified for the crimes these people have committed and continue to commit. All we have to do is enforce the law. It's this refusal to do so that will spark the revolution, I'm sure of it.
Notice Enron's exec might get his sentence reduced from 28 years to 12.
That jackel is the reason Congress enacted Sarbox. More kabuki theater by the Red/Blue fascists to demoonstrate their concern for the middle class. Every time the Boss says he/she had no idea, prosecute the bastards using Sarbox.
Louis Freeh was a busy man in 2012, overseeing the MF Global and Sandusky affair. He must be the go to guy for these kinds of things.
Charging Corzine with anything would really open a can of worms for the Department of Justice. It would come to light how it happened that a commodities broker was allowed to file bankruptcy as if it was a securities firm thus allowing JP Morgan to keep what was paid to them from people's segregated accounts, etc, etc.
If we had real news organisations reporting news instead of propaganda machines controlled by boards full of Big Banking/ Big Pharma players, the people may actually hear the details of exactly how the corrupted bankruptcy process works to redistribute wealth from the middle to the very top.
If Corzine is charged with anything, I'm sure he will be promised by his friends in government that it will just be a trial just for show and nothing bad will happen to him, and while he's waits quietly for an easy judicial victory, he'll have a stroke, or commit suicide.
Jon Corzine donated over $500,000 to Barack Obama ahead of the 2012 election.
Thanks Barack!
http://www.obamabiden.com/volunteer-fundraisers-q4.html (ctrl+f Corzine)
Louis Freeh was a busy man in 2012, overseeing the MF Global and Sandusky affair. He must be the go to guy for these kinds of things.
Charging Corzine with anything will really open a can of worms for the Department of Justice, especially if it comes to light how it happened that a commodities broker was allowed to file the bankruptcy like it was a securities firm allowing JP Morgan to keep what was paid to them from people's segregated accounts. If we had real news organisations reporting news instead of propaganda machines controlled by boards full of Big Banking/ Big Pharma players, the people may actually hear the details of exactly how the corrupted bankruptcy process works to redistribute wealth from the middle to the very top.
If Corzine is charged with anything, I'm sure he will be promised by his friends in government that it will just be a trial just for show and nothing bad will happen to him, and while he's waits quietly for an easy judicial victory, he'll have a stroke, or commit suicide.
Louis Freeh was a busy man in 2012, overseeing the MF Global and Sandusky affair. He must be the go to guy for these kinds of things.
Charging Corzine with anything will really open a can of worms for the Department of Justice, especially if it comes to light how it happened that a commodities broker was allowed to file the bankruptcy like it was a securities firm allowing JP Morgan to keep what was paid to them from people's segregated accounts. If we had real news organisations reporting news instead of propaganda machines controlled by boards full of Big Banking/ Big Pharma players, the people may actually hear the details of exactly how the corrupted bankruptcy process works to redistribute wealth from the middle to the very top.
If Corzine is charged with anything, I'm sure he will be promised by his friends in government that it will just be a trial just for show and nothing bad will happen to him, and while he's waits quietly for an easy judicial victory, he'll have a stroke, or commit suicide.
Louis Freeh was a busy man in 2012, overseeing the MF Global and Sandusky affair. He must be the go to guy for these kinds of things.
Charging Corzine with anything will really open a can of worms for the Department of Justice, especially if it comes to light how it happened that a commodities broker was allowed to file the bankruptcy like it was a securities firm allowing JP Morgan to keep what was paid to them from people's segregated accounts. If we had real news organisations reporting news instead of propaganda machines controlled by boards full of Big Banking/ Big Pharma players, the people may actually hear the details of exactly how the corrupted bankruptcy process works to redistribute wealth from the middle to the very top.
If Corzine is charged with anything, I'm sure he will be promised by his friends in government that it will just be a trial just for show and nothing bad will happen to him, and while he's waits quietly for an easy judicial victory, he'll have a stroke, or commit suicide.
Louis Freeh was a busy man in 2012, overseeing the MF Global and Sandusky affair. He must be the go to guy for these kinds of things.
Charging Corzine with anything will really open a can of worms for the Department of Justice, especially if it comes to light how it happened that a commodities broker was allowed to file the bankruptcy like it was a securities firm allowing JP Morgan to keep what was paid to them from people's segregated accounts. If we had real news organisations reporting news instead of propaganda machines controlled by boards full of Big Banking/ Big Pharma players, the people may actually hear the details of exactly how the corrupted bankruptcy process works to redistribute wealth from the middle to the very top.
If Corzine is charged with anything, I'm sure he will be promised by his friends in government that it will just be a trial just for show and nothing bad will happen to him, and while he's waits quietly for an easy judicial victory, he'll have a stroke, or commit suicide.
Louis Freeh was a busy man in 2012, overseeing the MF Global and Sandusky affair. He must be the go to guy for these kinds of things.
Charging Corzine with anything will really open a can of worms for the Department of Justice, especially if it comes to light how it happened that a commodities broker was allowed to file the bankruptcy like it was a securities firm allowing JP Morgan to keep what was paid to them from people's segregated accounts. If we had real news organisations reporting news instead of propaganda machines controlled by boards full of Big Banking/ Big Pharma players, the people may actually hear the details of exactly how the corrupted bankruptcy process works to redistribute wealth from the middle to the very top.
If Corzine is charged with anything, I'm sure he will be promised by his friends in government that it will just be a trial just for show and nothing bad will happen to him, and while he's waits quietly for an easy judicial victory, he'll have a stroke, or commit suicide.
Louis Freeh was a busy man in 2012, overseeing the MF Global and Sandusky affair. He must be the go to guy for these kinds of things.
Charging Corzine with anything will really open a can of worms for the Department of Justice, especially if it comes to light how it happened that a commodities broker was allowed to file the bankruptcy like it was a securities firm allowing JP Morgan to keep what was paid to them from people's segregated accounts. If we had real news organisations reporting news instead of propaganda machines controlled by boards full of Big Banking/ Big Pharma players, the people may actually hear the details of exactly how the corrupted bankruptcy process works to redistribute wealth from the middle to the very top.
If Corzine is charged with anything, I'm sure he will be promised by his friends in government that it will just be a trial just for show and nothing bad will happen to him, and while he's waits quietly for an easy judicial victory, he'll have a stroke, or commit suicide.
"The risky business strategy engineered and executed by Corzine and other officers..."
The mention of other officers ensures he will never go to jail.
Would be a slam-dunk Sarbanes Oxley prosecution except the Dept of InJustice would never bring it. As CEO of a public company, he certified that MFG's internal controls were effectively designed and implemented, under penalty of perjury.
When the law does not apply equally to all, there can be no justice.
Exactly. How many billions of dollars was spent on auditing companies to comply with Sarbox? The first really big blow up, a slam dunk case for a 2nd year law student, and they don't even plan to indict the guy. Un-f*cking believable.
It's too damn late. Really why pretend? The country is going down the tubes. We can blame Bush,Obama, Bernake, or whoever. But, the fact is we're burning through money at a very rapid pace. We keep trying to push back the day of reckoning. At some point in the not too distant future interest on our national debt will exceed the income. What the hell do you think will happen then..? Water for horses....wine for the men...we're stayin the night!
Corzine adheres to Jim Cramer's school of logic. "The US debt situation is not gonna end well....but in the meantime let's make some money." In a move to show the world that they mean business, the Justice Dept will find him guilty of a lesser charge and he'll be out in 8 months and be fined $5000. Com'on...what's the big deal...it's too late to save Humpty US Dumpty. Don't taz me bro !
The fact that they were a primary dealer should be mentioned in every article about the fuckups that were MF Global.
I think he need to have a picnic at some grassy knoll
With Eric the Place-Holder it's law of the jungle Just-Us.
The rule of law only applies to the muppets or small people.
How is Corzine still at liberty?
Obama as his best bud certainly helps
The land of the free and the home of the brave should have a look at this
http://www.zerohedge.com/contributed/2012-11-28/americans-have-less-access-justice-botswanans-%E2%80%A6-and-are-more-abused-police-ka
Probably has something to do with the half-million in campaign cash to Team Obama in the 2012 cycle, as someone earlier mentioned.
How do you drown a bankster?
Throw a hundred pennies into the deep end of the swimming pool.
Alot of people lost alot of money ... and they're hurting ... and they know who stole their money - I get all that.
But what I don't understand is why at least one of them hasn't hired some thugs to drag Corzine out of bed in the night and do a "Blackfriars" on him ? Maybe even leave some bricks in his pocket as well ... And by doing it in a public place they would be setting an example for the other citizens to follow ...
Just don't undrstand why it hasn't happened yet ... can anyone explain ?
If you guys don't learn to think outside the box, you're going to spend a lot of money, or get arrested for Turrrrism.
Valentine's Day comes every damn year, and taking half his personal fortune costs the price of a Forever Stamp. Now, shuffle on down to Hallmark, and put your Starlite scopes away.
Never end an evil man's misery. This is what wives are for.
I'd like to see Corzine cuffed today and shuttled off to NJ State Prison in Trenton so he could be sucking dick by sunrise tomorrow.
Where's the money, MF?!?
F!@k Corzine, Him and the rest of the Cronies need to be round up and collectively bitch slapped, Congress, white house, Buffet, Big Pharma, Apple and all there ignorant liberal users, the tort lawyers, the reckless banksters, and so on... one big fat bitch slap-a-thon, line em up and let the american people line up and take turns slapping the shit out of each of em so they know they are not smarter or more capable then anyone, just less scrupulous.
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.
My weak reading and comprehension skills will prevent me from paying taxes this year.
**DC SPIN HAT ENGAGED**
I rarely comment on US politics, but things to ponder:
1) Democrats, and especially Obama, have been taking solid hits of credibility [*ahem* GS appointee to Canada] all through the last 4 months, and are polling badly on Reddit et a. There's precious little else positive [still not seen Obama commenting on NK fever] going down, and the screws are in. (For fans of the Blue / Red show, fear not: the Red team are not doing so well either].
2) J. Corzine has been a dead duck since he pleaded the 5th in the first Senate hearings. He rolled over, right there, and said to those higher in the food chain: "I fucked up, but my balls are in your pocket, and there they remain". He vowed not to speak; he's been wandering around in a sweater with nothing to do during the day; he was waiting for this (and hoping for that sweet pardon, but gotta couple of years yet for that John).
3) Corzine was propping up those EU trades for somebody. Unless, of course, our golden boy really thought that gambling with farmer's insurance bonds on a risky market was "ok" as a business model? I don't believe that for a second. Especially since any idiot who was paying attention was posting the Mid-West drought figures, or was paying attention to the impact of legislation against required migrant workers? What possibly could go wrong with that? No, really: if I invest people's money, I'll usually check if they might be wanting it back, pronto like.
..
Cutting the obvious: when will people learn that a cream-skimming operation is just as stupid as a pyramid, especially when things "Beyond my Control" make the milk underneath boil over?
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99) $85 bil / month will pay off some farmers, at some point, when lawyers and so on have had their fill, and the real time aspect means another 1000 hectare farm went to a larger one (let's not pretend that the myth of the "small" farmer is of any importance in the USA, shall we? Cut the historic imagery bullshit).
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x) Corzine will get prosecuted; jail in a nice soft place for 3-8, gets let off sooner [look to Enron for who'se making deals with whom for time served vrs penalty clause], Reddit gets to cheer, Democrats all around sleep easier, the show goes on.
And so on.
What amazes me is that no-one saw this coming. Actually, they did. What failed them was lacking Truthful information. Damn, if that's not another issue that needs addressing.
/meta - if you're scared of being caught with an off-shore on the list (and the bigger better list not given to the American journalists, you know, people like the Graud, who did a nice hit-job on (arrogant asshole, but meh) Assange) then you should have paid attention to the Arabs, and Victorian Gentlemen of London and interestingly enough, Richard Branson.[1] Building things is nice and all, and culturally beneficial, and protects against the hordes. Problem is, Simon & Co., your models are missing some essential data.[2]
[1]Everyone "hates" him, envies him or laughs at him, up to the important part of asking any real questions; at that point, Branson's real genius shows, and everyone says... "What a nice guy; aspirational, we can ignore anything market wise he's ever done". Teflon, fucking teflon; and now recommending legalising drugs. Probably the only "big O" who can still pull that move with any authenticity, it's been a long time the '60s.
[2] Simon Cowell. And other media modeled products.
A corporation with limited liability is a state-back invention, it is not definitely not part of the free market, because anything which the state interferes with is not a free market, so bang goes your rant.
A proper free market has little or no state involvements, thus little or no protection from some very serious law suits, which corporations, its employees and its shareholders are currently protected against by the state i.e. injustice and a mockery of property rights!
What we have is Corporatism, with alusions to Capitalism.