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You Can't Make This Up: MF Global Sues PWC, Blames It For Its Collapse

Tyler Durden's picture




 

File this one in the "you can't make it up" category. Over two years after the MF Global collapse, in which the primary dealer headed by Jon "I don't recall" Corzine all but admitted it had engaged in the cardinal sin of any financial intermediary, i.e., commingling money, to cover up a trade gone horribly bad and which resulted in the disappearance of some $1 billion in client funds until such time as the bankruptcy process managed to "liberate" funds from other part of the company, MF Global has suddenly figured who is at fault: not the CEO, not his brown-nosing lackey, not some janitor meant to be scapegoated precisely in a situation such as this, not even the infamous "glitch" - no, the party that is accountable for the firm's theft of client funds, and horrible investing decisions that led to its bankruptcy, are the accountants.

No really: yesterday MF Global Holdings sued PricewaterhouseCoopers LLP for $1 billion, alleging accounting malpractice helped bring down the brokerage company.

Like we said, you can't make this up. From Bloomberg:

PwC, which provided outside auditing and accounting experts, failed to advise the firm to account properly for its European sovereign debt holdings, leading it to over-invest in them, MF Global Holdings said in a complaint filed today in Manhattan federal court.

 

But for PwC’s erroneous accounting advice, MF Global Holdings could not have -- and would not have -- invested heavily in European sovereign debt to generate immediate revenues and would not have suffered the massive damages that befell the company in 2011,” MF Global Holdings said in the complaint.

 

MF Global filed for bankruptcy on Oct. 31, 2011. Customers have claimed in lawsuits against the firm’s former executives that more than $1.6 billion of their funds that should have been segregated went missing, transferred to other parts of the company during the liquidity crisis.

 

Christopher Atkins, a PwC spokesman, didn’t immediately return a voice-mail message seeking comment on the suit.

In retrospect: almost brilliant. MF Global, or what's left of the estate, is using the old tried and true "Enron defense", where if there was corporate criminality, the accountants were surely involved. And they most probably were. There is one problem though: in the case of Enron, all of its key executives, Lay, Skilling and Fastow, got prison sentences. In MF Global's case of Jon Corzine... not so much.

 

Why? The answer:

 

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Sat, 03/29/2014 - 09:52 | 4605225 crazzziecanuck
crazzziecanuck's picture

Marx wrote that history repeats itself.  First as tragedy, then as farce.

Sat, 03/29/2014 - 09:55 | 4605229 Arrowflinger
Arrowflinger's picture

The MFers pulled another Enron. There is an old Chinese saying - "He who screws with book cooker in pantry often gets ass in a scam."

 

Sat, 03/29/2014 - 09:57 | 4605235 CH1
CH1's picture

Fascism.

Sat, 03/29/2014 - 10:27 | 4605276 smlbizman
smlbizman's picture

see...i knew it couldnt be jon...he is the honorable mr. corzine...cause that what it says on his plaque

Sat, 03/29/2014 - 10:51 | 4605310 kliguy38
kliguy38's picture

honorable?? ...maybe not so much......but that is one smokin' hot babe..........so i guess crime does pay.....if you're in the club

Sat, 03/29/2014 - 11:16 | 4605334 PT
PT's picture

Here, let me have a try:

But if PWC didn't tell MFG what they wanted to hear then MFG would have hired someone else.

Am I getting close? 

Sat, 03/29/2014 - 11:18 | 4605341 HoofHearted
HoofHearted's picture

So, if I steal money from other people and then don't pay it back, it would be okay as long as I knew the Choomer in Chief? Cool. I need to call ol' Barack up, bring some of the good shit with me, and then stop paying my mortgage, my credit card bills, etc.

What dit the woman say about not having to worry anymore? Barack's going to pay for my house, fill up my car, and so on. It looks like it works...at least for the 0.01%

Sat, 03/29/2014 - 11:37 | 4605373 PT
PT's picture

Was I too subtle?  I'll try again:

"It's the free market's fault.  I bought the best accountants that money could buy and they still weren't good enough!"

Maybe I shoulda stuck a "/sarc" tag in there somewhere.

Sat, 03/29/2014 - 11:44 | 4605383 PT
PT's picture

"No Jon, when I told you that good accountants make you money, that's not what I meant."
"... and when I said that good accountants pay for themselves, it doesn't quite work that way.  You still have to pay them."

...

Sat, 03/29/2014 - 12:25 | 4605464 scraping_by
scraping_by's picture

In all the Mafia stories, the consigliore never gets whacked. They just show up and calm down the capo di capo tutti.

Different level of gangster, it seems.

Sat, 03/29/2014 - 12:40 | 4605499 RiverRoad
RiverRoad's picture

Who they should be suing is the Fed.  It's he Fed who's been funneling $$ to Europe to keep their interest rates from rising.  As a result MFG was left empty-handed re their investments in junk bonds there.

Sat, 03/29/2014 - 13:02 | 4605535 PT
PT's picture

Can we sue them for keeping house prices unaffordable for the last 15 years plus ...

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

Sat, 03/29/2014 - 13:06 | 4605543 PT
PT's picture

Oh, hang on.  I forgot.

http://www.youtube.com/watch?v=GhBa12DobiM

Never mind ... 

Sat, 03/29/2014 - 13:11 | 4605551 DoChenRollingBearing
DoChenRollingBearing's picture

When, o when will Corzine go to jail?

He would then have ample time to consider the maginitude of his sins and to figure out how to make amends...  Oh, say, like, pay the money back he stole, you know, that sort of thing.

He will have to do a LOT of forgiving before he will ever be forgiven.  A hopeless task?  Perhaps not, but in his case, probably so.

Corzine...  Like ZH member "nmewn" last night coined the term "Rubinomics", "Corzine" might become a term that gains traction.

Sat, 03/29/2014 - 14:01 | 4605640 seek
seek's picture

ZH should submit ZH-isms weekly to urbandictionary.com, eventually some of them might stick.

When someone says they've been Corzined, I know exactly what they mean.

Sat, 03/29/2014 - 15:10 | 4605801 DoChenRollingBearing
DoChenRollingBearing's picture

This is not a ZH-ism, but one I think you will like seek.  This is the kind of thing that fonestar perhaps should be posting:

http://i.imgur.com/CzyO1yv.jpg

A confidence builder...

***

I joined https://bitcointalk.org/ with the handle "OROBTC".

It was a bitcointalker who solved my QR Code question (at my blog), NOT a ZH-er (to my knowledge), so I sent him his 0.05 BTC prize from Peru.

Sun, 03/30/2014 - 01:03 | 4607157 Son of Loki
Son of Loki's picture

great photo: The Honorable Jon Corzine with that Nobel Peace Prize winner..what's his name again....?

Sat, 03/29/2014 - 18:38 | 4606337 Ifigenia
Ifigenia's picture

no, they should sue the sheeps for been ignorants and dociles.

Sat, 03/29/2014 - 12:12 | 4605430 KickIce
KickIce's picture

I think that's the same defense Michael Jackson's doctor used but with drugs.  Accounting, and especially auditing have slippery slopes, it would be like allowing high school students to determine their teacher's wages based on grades and disciplinary action.

Sat, 03/29/2014 - 14:01 | 4605642 zhandax
zhandax's picture

Question remains, why didn't they think of this 'defense' two years ago?  Got their lawyers at Big Lots?

Sat, 03/29/2014 - 11:17 | 4605338 Troll Magnet
Troll Magnet's picture

I think that's his dead son's girlfriend.

Ooh..Was that in poor taste?

Sat, 03/29/2014 - 11:53 | 4605398 remain calm
remain calm's picture

Too soon

Sat, 03/29/2014 - 12:57 | 4605527 Troll Magnet
Troll Magnet's picture

What? I'm just pointing out how much they enjoy commingling all things. *feign innocence*

Sat, 03/29/2014 - 17:51 | 4606194 Colonel Klink
Colonel Klink's picture

She's been RehyPOPicated.

Sat, 03/29/2014 - 13:01 | 4605534 Skateboarder
Skateboarder's picture

Jeff Corzine is turning in his grave.

Sat, 03/29/2014 - 13:20 | 4605576 Jayda1850
Jayda1850's picture

Thank you. That comment made my day.

Sat, 03/29/2014 - 16:09 | 4605928 willwork4food
willwork4food's picture

Sometimes it just pays to be an asshole.

Sat, 03/29/2014 - 12:05 | 4605412 Rafferty
Rafferty's picture

Statutory auditors will never find anything that the Directors don't want found. Because if they do they lose their contract to some company that will look the other way.  It applies all way down the line and especially in the FIRE sector.

Sat, 03/29/2014 - 12:11 | 4605428 Rafferty
Rafferty's picture

I just can't get it into my head that Corzine is not a member of the tribe.  He just seems to, well, tick a lot of the boxes.......

Sat, 03/29/2014 - 15:16 | 4605815 yogibear
yogibear's picture

Plenty of golddiggers around.

Sat, 03/29/2014 - 11:36 | 4605370 SilverIsKing
SilverIsKing's picture

These same accounting firms are signing off on all the mark to fantasy bullshit sitting on JPM, BAC, C, etc balance sheets without qualification.

If I were PwC or any other audit firm, I would begin qualifying all the bad shit so as to avoid this when the SHTF with the banks.

Sat, 03/29/2014 - 11:47 | 4605387 PT
PT's picture

Just a gentle reminder to CYA - Cover Your Arse.

Sat, 03/29/2014 - 12:05 | 4605414 markar
markar's picture

Congress made "mark to fantasy" legal.

Sat, 03/29/2014 - 12:42 | 4605506 SilverIsKing
SilverIsKing's picture

So if PwC does it's own testing and finds impairments based on rational analysis, PwC will be indemnified if and when the toxic paper blows up?

Sat, 03/29/2014 - 14:15 | 4605668 seek
seek's picture

If that happens, PwC doesn't approve the audit and doesn't sign off.

That's why when companies change accounting firms/auditors it's such a big red flag. The accountants indemnify themselves by not participating in fraud they find.

Auditors don't have free reign in the company, they only confirm the books they've been presented are correct. What an audit really proves is that a corrupt company is good at cooking the books. Failing an audit means that the corruption and/or accounting practices are so bad that even cooked books can't cover it up.

Sat, 03/29/2014 - 19:57 | 4605780 Blankenstein
Blankenstein's picture

 

 

..but that is one smokin' hot babe....so i guess crime does pay

Not so sure about that....

 

http://www.nj.com/news/index.ssf/2010/11/former_gov_jon_corzine_marries....

http://dailybail.com/home/public-letter-from-the-office-of-the-hon-jon-s...

 

Sat, 03/29/2014 - 17:50 | 4605829 syntaxterror
syntaxterror's picture

kliguy38 wrote: "Honorable? Maybe not so much, but that is one smokin' hot babe. So i guess crime does pay if you're in the club."

-----------------

The 'smokin hot babe' is Sharon Elghanayan, his wife. Here are some sizzling photos of her from the same beach romp:

http://dancirucci.blogspot.com/2009/11/life-on-corzine-beach.html

Oh, and by the way, as you lube up, I thought I should mention that she's 65 years old.

 

 

Sun, 03/30/2014 - 06:50 | 4607356 Disenchanted
Disenchanted's picture

Plus, she's a psycho's therapist...

Now I think she's pushing 69, no not THAT 69.

 

Excuse me, now I need to find a bucket.

Sat, 03/29/2014 - 15:09 | 4605800 jerry_theking_lawler
jerry_theking_lawler's picture

This is the EXACT case here.....wasn't MF buying EU debt instruments that got them in trouble..?? Can't remember all of the details from this incident but it sounded like MF was helping hide the EU insolvency problem.

Sat, 03/29/2014 - 20:29 | 4606612 Againstthelie
Againstthelie's picture

The hidden rulership of the international Money Masters. It's a Plutocracy, not Fascism.

One key element of Fascism is (restoration of the) primacy of politics!

Another one is the authoritarian principle of LEADERSHIP and another one therefore re-alignment of responsibility and personality to remove the influence of the hidden forces. In a Plutocracy the elected politicians do not decide, and those that decide are not elected. In Fascism the leaders are known and are held responsible.

Btw, any organization in reality that functions well, is organized after the authoritarian principle: companies, police, military, families.

 

Sat, 03/29/2014 - 10:27 | 4605275 Millivanilli
Millivanilli's picture

Jon Corizine HERE.

 

You can't catch me.  We got you dazzled with Titties and Beer.

Frank Zappa

https://www.youtube.com/watch?v=WzzWEeiUf3Y

Sat, 03/29/2014 - 10:45 | 4605302 gafgroocK
gafgroocK's picture

 

 

So that picture is showing Corzine focused at his new job testing each and every Chaise Lounge product beyond its  recommended design envelope ?

Sat, 03/29/2014 - 11:47 | 4605388 Spore
Spore's picture

LOL! That was good.....got me dazzled!

Sat, 03/29/2014 - 10:38 | 4605286 ugmug
ugmug's picture

Its 'The Butler Did It' defense!

Alan Dershowitz should be immediately summoned to take the case.

The whole thing is turning into the popular Wall Street boardroom game 'Clueless'......

Sun, 03/30/2014 - 12:08 | 4607769 optimator
optimator's picture

If the tit don't fit....the "anything more than a handful is a mouthful wasted defense".

Sat, 03/29/2014 - 10:35 | 4605288 TideFighter
TideFighter's picture

Any chance that island has cannibals? Yeah, they would eat her first, but that would leave the Stew of Jon in the pot a little longer to tenderize.

Sun, 03/30/2014 - 06:53 | 4607359 Disenchanted
Disenchanted's picture

re: " Yeah, they would eat her first"

That ain't no fresh sushi we're talking about here...

Sat, 03/29/2014 - 10:40 | 4605298 williambanzai7
williambanzai7's picture

Sat, 03/29/2014 - 11:02 | 4605324 holmes
holmes's picture

By this logic, next time I get caught sticking up the local liquor store,

I'm gonna sue the cops for not stopping me first.

Brilliant.

Sat, 03/29/2014 - 11:38 | 4605368 williambanzai7
williambanzai7's picture

I know it sounds ridiculous, particularly because the officers are all walking.

However, the goal of this kind of a lawsuit is to sue on behalf of the bankruptcy estate to increase the asset pool available to the firm's creditors, including those who lost unlawfully commingled assets. The accountants are liable to the firm, just like lawyers and other advisors who gave incorrect advice.

Of course, the estate can also try to sue the officers and directors as well. But they are all indemnified by the firm and its D&O insurance, which brings the whole farce full circle.

When you study how this all works, you understand what is truly meant by Ponzi scheme.

Institutional investors all understand this game and go in with their eyes wide shut. But the little folk who got porked by Corzine hardly bargained for what they got.

And I did not down arrow you.

Sat, 03/29/2014 - 11:48 | 4605390 I Write Code
I Write Code's picture

I can see the investors suing PWC as partially liable, but I can't see MFG suing, it's MFG's job to have all the rocket scientists who know this stuff.  So MFG's suit should lose.  Hey, could that be the strategy, have MFG file suit and lose, then when the investors sue they claim double jeopardy or something?

Sat, 03/29/2014 - 12:00 | 4605402 williambanzai7
williambanzai7's picture

 

They can try directly as well. And there is no such thing as a double jeopardy defense in a civil action. However, such actions are often styled similarly as what is known as a derivative action, a claim initiated on behalf of the company.

You can bet that the bankruptcy trustee or, whoever initiated this claim on behalf of the bankruptcy estate, has no interest in sharing the proceeds if any with Corzine and Co. The carcass called MFG is no longer being stewarded by the people who killed it.

The bottom line is the system of coporate governance and accountability in the US is designed to let everyone off personally. And people like the OECD run around preaching the same news must be adopted by the rest of the world.

Sat, 03/29/2014 - 12:32 | 4605481 toys for tits
toys for tits's picture

Hopefully it'll get to the discovery process before it's settled.  

Corzine's deposition will be fun when he's asked questions by PWC's attorneys who have something on the line, which is their high-billable prestige.  Congress doesn't risk shit asking questions.

Sat, 03/29/2014 - 12:44 | 4605510 williambanzai7
williambanzai7's picture

Humourously, Congress is apparently getting ready to force Big Law firms to switch to accrual accounting from cash accounting. A nice big kahuna up Big Law's ass.

No wonder they all spend tons of money on campaign donations.

Sat, 03/29/2014 - 12:19 | 4605449 KickIce
Sat, 03/29/2014 - 12:40 | 4605500 Emergency Ward
Emergency Ward's picture

Cop sues to get his job back after getting fired for beating a homeless man to death:

http://www.policeone.com/legal/articles/6750858-Chief-to-fight-acquitted...

Sat, 03/29/2014 - 13:11 | 4605554 Skateboarder
Skateboarder's picture

Uhm... he was a... terriss, you see... a threat to national security. Thereby, we award him a $20k bonus and a new missile-equipped humvee to roam your streets around with.

*raises toast*

To our brave heroes, defending our freedom and democracy from the unscrupulous panhandling and lingering of homeless enemy combatants.

Sat, 03/29/2014 - 13:10 | 4605553 sgt_doom
sgt_doom's picture

Sorry, Corzine, but since you were at Goldman Sachs when you whorescum lobbied for the passage of the Private Securities Litigation Reform Act of 1995, providing accountants and attorneys legal immunity from securities fraud, and since your witches familiar, Chris Christie, was a lobbyest who made it possible to exclude securities fraud from New Jersey's criminal acts legislation, you can't blame the bean counters, dipshit!

 

Sat, 03/29/2014 - 14:56 | 4605754 WVO Biker
WVO Biker's picture

I am a former customer of MF and was made whole 98% or 100%, I lost track. I have no sympathy for Corzine, mostly because he  supported a very dangerous political figure. His bet was there would be no european sovereign default and that indeed never happened. Banks have a habit to destruct a person or company whenever they have a chance to do so. It happened to Metallgesellschaft and many others. Soros bought Corzine's positions at deep discount. OK, Corzine stole a lot of money (at least temporaily).   

Sun, 03/30/2014 - 12:55 | 4607867 Buck Johnson
Buck Johnson's picture

I agree, the nerve of this guy.  He should have been put in prison for what he did but they didn't do it.  The govt. did everything (including the media) to downplay what happened to make it sound like it wasn't anybodies fault.

Sat, 03/29/2014 - 09:52 | 4605226 Arrowflinger
Arrowflinger's picture

PWC= Price Was Corruption

 

Sat, 03/29/2014 - 10:12 | 4605252 Ban KKiller
Ban KKiller's picture

Crooked accountants fuel Wall Street and fool everyone. 

Free market is dead. 

Sat, 03/29/2014 - 10:29 | 4605277 Arrowflinger
Arrowflinger's picture

Fundamentals investing has been dead since 2003. Upon reading that one blue chip wrote off $360 million of "CASH" on its balance sheet, I got out and will never go back. Accountants have redefined assets as liabilities and ephemera as assets. They can no longer identify reality.

Sat, 03/29/2014 - 10:34 | 4605284 Kirk2NCC1701
Kirk2NCC1701's picture

True. Which makes the job of selling "product" for CFPs either very easy (con) or every hard (morally).

I think some ZHers are in this dilemma.

Sat, 03/29/2014 - 11:25 | 4605355 PeeramidIdeologies
PeeramidIdeologies's picture

On the other side of the coin, who can buy this shit and still get a good nights sleep? A lot of businesses are one unfavourable audit away from rolling over. If you factor in how many companies used the low interest rates to borrow money just to keep their doors open, you have got yourself a real shit storm brewing.

Of course this "little" MFG situation is a real blessing in disguise for those with an inkling of insight. "Disappeared" money, lawsuits flying everywheres, zero professional accountability?! Yup, this is a fine example of what is coming down the pipe on a timeline that may not much left for legs.

And I can't believe it took their legal team TWO whole years to get this lawsuit together. What a bunch of wankers... Or was that intentional? lol

Sat, 03/29/2014 - 12:32 | 4605482 PT
PT's picture

Be interesting to see the outcome.
And how this affects Corzine's ability to find a new accountant.

Sat, 03/29/2014 - 12:46 | 4605515 williambanzai7
williambanzai7's picture

Corzines accountant is Kenneth Lay.

Sat, 03/29/2014 - 13:10 | 4605552 PT
PT's picture

Accountant or mentor?

Lay vs Corzine?  Does that mean that J6P loses the case again? 

Sat, 03/29/2014 - 14:51 | 4605759 PeeramidIdeologies
PeeramidIdeologies's picture

Lol I get the impression old Johnny boy doesn't worry about much...

Sat, 03/29/2014 - 11:18 | 4605340 Confused
Confused's picture

Not sure this is totally true. It depends on which part of PWC they are talking about. Advisory? I would imagine not. Audit? Most likely. But if you know anything about audit, you know that it is youngsters (22-34 years old) doing the grunt work. Often times they do not know what they are looking at, and have less experience than those who they are charged with auditing. Then you throw in the partners, whose job it is to retain clients, and keep said clients happy, things get tricky really quickly. 

 

The audit racket is stange. Of course not without corruption of its own. But it is an imperfect system at best. 

Sat, 03/29/2014 - 12:18 | 4605440 Rafferty
Rafferty's picture

That's because the 'auditors' are not meant to find anything that might inconvenience the executives or the Board.  If they do they lose the audit contract.  So it's a win-win.  The auditors send in kids straght from college and pay them buttons. Then bill them out  much of the time at Director or even Partner rates.   It's a great gig.

Sat, 03/29/2014 - 12:34 | 4605486 scraping_by
scraping_by's picture

The business model of any of the big accounting firms is using audit to get a foot in the door, then sell advisory as a value-added service. If a firm had a relationship with a company, the connection is about as common as a happy ending with a massage.

If the conservator doesn't have a smoking gun, they might be throwing mud against a wall and seeing what sticks.

Sat, 03/29/2014 - 15:16 | 4605818 jerry_theking_lawler
jerry_theking_lawler's picture

SO (sarbanes oxley) is another FUCK YOU by the government by increasing costs on businesses (these 22-34 yo get billed out at 200-500/hr and still don't know shit) but gives the illusion that ALL IS WELL in a business. Overnight it created a business class of non-value added accountants that all think they are genuises....except all they really do is add and subtract shit.

Get rid of all of this shit. Add personal responsiblity back to the equation. If a business owner (equity and bond holders) or managers knew they could lose their own wealth or go to jail, then they wouldn't make these decisions. This is all part of my personal RCA (root cause analysis) of these situations.

Sat, 03/29/2014 - 09:53 | 4605227 B2u
B2u's picture

Fuck you Corzine....

Sat, 03/29/2014 - 10:07 | 4605250 Bay of Pigs
Bay of Pigs's picture

Certainly, but isn't it time to FREE Jon Corzine?

Sat, 03/29/2014 - 11:30 | 4605362 Emergency Ward
Emergency Ward's picture

FREE JON CORZINE !!

Sat, 03/29/2014 - 12:09 | 4605422 PT
PT's picture

... in every packet of Weeties....

OH NO!  AAAAAAAAAAAARRRRRRRRRGGGGGHHHHHH!!!!!!!!

Sorry.  I think it really is time that I went to sleep. 

Sat, 03/29/2014 - 09:56 | 4605231 J S Bach
J S Bach's picture

The devil has no conscience.

Sat, 03/29/2014 - 09:57 | 4605236 mummster
mummster's picture

Having been an intermediary for MFG UK I can attest to the fact that their booking/accounting of client positions was the most confusing of any I have seen in my 30 years in the industry. Clients could scam the system as easily as they in turn scammed it themselves.

Sat, 03/29/2014 - 12:39 | 4605497 scraping_by
scraping_by's picture

That's probably not an accident. Any time someone in finance uses the word 'complicated' it's time to use both hands to cover your cornhole.

Rutherford said you should be able to explain atomic physics to a bar maid. Bookkeeping shouldn't be more out of reach.

 

Sun, 03/30/2014 - 09:32 | 4605532 11b40
11b40's picture

As I heard my old man tell someone long ago -- If you can explain it, I can understand it.  If you can't explain it, I'm not interested.

Sat, 03/29/2014 - 09:58 | 4605237 ParkAveFlasher
ParkAveFlasher's picture

Blame the math!  Because it is what you would have it be.

Sat, 03/29/2014 - 09:59 | 4605238 nmewn
nmewn's picture

Its the accountants fault...lol.

Yes, of course. We told the accountants "that pool of money" was in this column of the ledger, not that column...and they believed us!

Their fault!!!

Sat, 03/29/2014 - 10:14 | 4605254 29.5 hours
29.5 hours's picture

 

 

PwC will not be able to recall anything. "Who is this Jon Corzine of which you speak?"

This is a perfect system for theft. It cannot be improved upon.

 

 

Sat, 03/29/2014 - 10:21 | 4605262 Amish Hacker
Amish Hacker's picture

Not so sure about that. If you want to transfer huge sums of money from a lot of people to a very few people, nothing beats a good war.

Sat, 03/29/2014 - 11:17 | 4605337 SamuelMaverick
SamuelMaverick's picture

Why steal less when you can steal more ??????

                                        Maverick

Sat, 03/29/2014 - 09:59 | 4605239 Whoa Dammit
Whoa Dammit's picture

Accounting malpractice (internal) was what kept MFG open for as long as it was, not the other way around. 

Sat, 03/29/2014 - 10:35 | 4605287 xtop23
xtop23's picture

+1 excellent comment.

Sat, 03/29/2014 - 09:59 | 4605240 Kina
Kina's picture

Corzine is an ugly piece of shit. Hope he doesn't have a stroke and spend 20 years stairing up at a ceiling....that wouldn't be justice....

Sat, 03/29/2014 - 10:44 | 4605297 Kirk2NCC1701
Kirk2NCC1701's picture

An "Exit, stage Left" via one stroke would be unjust.

He deserves lots of strokes. Hundreds of 'em, on a daily basis. Right up his rectum.

Broke 'im? Hell, no, rectum! Rectum real good!

Sat, 03/29/2014 - 09:59 | 4605241 spanish inquisition
spanish inquisition's picture

Corzine is definitely ball's deep in the Presidents inner circle. You can tell because he has not needed to show off his presidential cufflinks in public.

Sat, 03/29/2014 - 09:59 | 4605242 jimijon
jimijon's picture

Ken Lay went to jail? I thought he moved to South America after his death.

Sat, 03/29/2014 - 10:03 | 4605245 resurger
resurger's picture

That last pic hahaha 

Sat, 03/29/2014 - 10:03 | 4605246 Jayda1850
Jayda1850's picture

Almost everyday I read news articles like these to my wife and ask her, "Can I kill one of these bankers yet?" She always says no, but I know one of these days....

 

Sat, 03/29/2014 - 10:14 | 4605253 Ban KKiller
Ban KKiller's picture

How about tomorrow?

Sat, 03/29/2014 - 10:19 | 4605260 headhunt
headhunt's picture

Alphabetically?

Sat, 03/29/2014 - 10:24 | 4605270 Jayda1850
Jayda1850's picture

Only if the alphabet starts with a J.

 

 

 

Sat, 03/29/2014 - 11:23 | 4605350 douglas
douglas's picture

No better not take any chances... We need to start at the beginning of the alphabet! Before we get to ¨The Slime¨ and Dimon in the ¨J´s¨ , theres a certain guy over at Chase that starts with ¨B¨

Sat, 03/29/2014 - 10:47 | 4605306 Kirk2NCC1701
Kirk2NCC1701's picture

And exactly what, pray tell, keeps her from resisting progress?

Sat, 03/29/2014 - 12:41 | 4605503 Jayda1850
Jayda1850's picture

Some confused sense of morality.

Sat, 03/29/2014 - 10:04 | 4605247 Son of Captain Nemo
Son of Captain Nemo's picture

Well now!  That should buy him at least another couple of years...

Wonder what will happen when PWC shows all those book entries to a Judge who refuses to look at the exculpatory evidence and simply does what they all are paid by the Corporations to do?...

Jon actually looks pretty good on the beach considering what he's been through with all his business scandals and personal with his son's suicide. 

They all seem to rest easy without a care in the World... Don't they?

Sat, 03/29/2014 - 11:50 | 4605392 PT
PT's picture

How old is the photo?

Sat, 03/29/2014 - 10:14 | 4605256 Rakshas
Rakshas's picture

How is this guy still alive........... I mean the Norwegians have rescinded their ban on whaling if memory serves...

Sat, 03/29/2014 - 10:16 | 4605257 Seasmoke
Seasmoke's picture

You fucked up, you trusted us. 

Sat, 03/29/2014 - 10:37 | 4605261 yellowsub
yellowsub's picture

These "independent" auditors are a laugh.  Having worked for a defunct hedge fund (tech support), they work closely hand in hand together from what I have observed especially when they bring up things that don't look quite right...

When they could stand to lose a $1 million or more in client fees that won't make the auditing co partners happy so they are working to fudge numbers to make the client happy.   There's no such thing as independent when money is involved...

You'd figure these types of incidents would make people lose faith in finance when even the company themselves didn't know their own books...

Sat, 03/29/2014 - 11:21 | 4605348 Confused
Confused's picture

And more often than not, its the young auditors that ask the quesitons. The problem is, they don't have enough experience, or the background to push further. Especially when those above them tell them not to worry. 

 

You are spot on. 

Sat, 03/29/2014 - 10:21 | 4605263 29.5 hours
29.5 hours's picture

 

 

"But for PwC’s erroneous accounting advice, MF Global Holdings could not have -- and would not have -- invested heavily in European sovereign debt..."

It takes lack of shame to say that, since Corzine's "play money sovereign bet" account was not subject to oversight in any way.

 

Sat, 03/29/2014 - 10:22 | 4605266 williambanzai7
williambanzai7's picture

Accountants, totally accurate and totally useless.

Sat, 03/29/2014 - 11:39 | 4605377 disabledvet
disabledvet's picture

actually in your own uniquely stupid way you bring up an interesting point.

"if you're committing a fraud why did you need accountants?"
I think this case belongs before "Nightcourt" myself.
I know if i were the Judge i'd like to take good hard look at those books so we can finally see what Holocaust lovin' hebes really have been up to.

https://www.youtube.com/watch?v=5iyPtsAGLUg
https://www.youtube.com/watch?v=6ul-cZyuYq4

Sat, 03/29/2014 - 12:18 | 4605444 flyingcaveman
flyingcaveman's picture

Accountants legitimise the fraud.  Plenty of insolvent business can survive growing there inventory and their line of credit.  The trick is getting past that stage and complicating it to the point where a first year accounting student can't figure out the first day on the job.

Sat, 03/29/2014 - 10:23 | 4605269 Smegley Wanxalot
Smegley Wanxalot's picture

This is like suing the cheap security camera because the crook robbed the store.

Sat, 03/29/2014 - 10:25 | 4605273 Ban KKiller
Ban KKiller's picture

Theft begins with accounting. 

What ever happened to the big eight accounting firms? Seduced by money they were corrupted one by one. Then they change their names to hide from their past crimes.

Does any fool trust any accounting from Wall Street or our fascist rulers? 

Off topic...will still piss on Cheney's grave.

Sat, 03/29/2014 - 11:44 | 4605382 disabledvet
disabledvet's picture

"if you're committing a crime you hire a book-keeper, not an accountant."
they're suing the entire profession....not just one company.

Shall we sue the Fed next?
And what if the Judge decides there really were crimes committed here?
"Here's your little toy pistol...prepare for the fanatical defense of Beirut young man."

Sat, 03/29/2014 - 10:36 | 4605278 remain calm
remain calm's picture

They should have sued the investors. I mean, they should have used the same arguement that the guilty rapist uses. That is, she asked for it, her dress and demeanor was extremely provactive, therefore, she was begging to get fucked. These investors were begging for us to screw them when they flaunted their wealth around us, I mean what did they expect but to get raped.

Sat, 03/29/2014 - 13:16 | 4605563 short screwed
short screwed's picture

lol! +100

sadly, (deep down) they probably do think that way .

Sat, 03/29/2014 - 10:31 | 4605280 ozzzo
ozzzo's picture

Um, no, Kenneth Lay did not go to prison, and his family got to keep the money he stole after he "died."

 

http://en.wikipedia.org/wiki/Kenneth_Lay#Vacating_of_conviction 

Sat, 03/29/2014 - 11:00 | 4605320 stopthejunk1
stopthejunk1's picture

Actually, Ken Lay borrowed a page out of Douglas Adams and spent a year dead for tax/legal purposes.  He is now living on a private Carribean island.

Sat, 03/29/2014 - 10:33 | 4605283 Oreilly
Oreilly's picture

This way of thinking ("you should have stopped me from doing illegal things so it's YOUR fault I did them") is nothing new or all that uncommon.  Years ago I worked at a large engineering firm doing work under national contract to the EPA.  EPA took us to task because we did not stop their people from doing stupid things.  In other words, people who have authority over you maintain the authority but not the RESPONSIBILITY.  Real nice if you can get that type of work ... all the perks of authority without any of the responsibilities.

Sat, 03/29/2014 - 13:42 | 4605610 scraping_by
scraping_by's picture

That's a theory that shows up in lots of places. A friend of mine was a psychologist for the state reformatory. The new inmate interview always went the same way. First they'd deny they did the deed. Then they'd admit the crime, but claim no one was hurt by it. Then they'd admit people were hurt, but would always fall back on the same expression.

"If they didn't want me to do it, they should have stopped me.'

These were the ones who were going to be back in prison again and again. Most of the guys showed remorse at stages one or two, but the repeat offenders always got to the third and didn't budge.

However, these were theives and robbers and rapists. Not bankers.

Sat, 03/29/2014 - 14:24 | 4605693 29.5 hours
29.5 hours's picture

 

 

"However, these were theives and robbers and rapists. Not bankers."

Yes, thieves, robbers and rapists sometimes have a conscience and feel remorse.

 

 

 

Sat, 03/29/2014 - 10:34 | 4605285 world_debt_slave
world_debt_slave's picture

corzined again!

Sat, 03/29/2014 - 10:37 | 4605291 El Gordo
El Gordo's picture

It's all peanuts when we look at what our government is doing.  There really is no way to legally make money - it's all about government picking winners and losers and soaking the producers to give to the non-producers.  Got paper, you're in trouble.

Sat, 03/29/2014 - 10:38 | 4605292 lakecity55
lakecity55's picture

"Jon, Valerie says I have to punish you for MFG."

"Look at these gold bars, Bath House. 1 for you, Eric and Val."

"Like I said, you were a bad boy. Now let's head to the course."

"Fore!"

"Say, J, why does my bar have 'celente' written on it? Is it spanish or something?"

Sat, 03/29/2014 - 10:38 | 4605293 Judge Crater
Judge Crater's picture

With the right federal judge, Corzine's MFGlobal may even win their case before an appeals court tosses the matter.  After all, Goldman Sachs has friends in high places, as well as one friend at the top who often gets high.   

Sat, 03/29/2014 - 10:38 | 4605294 tawdzilla
tawdzilla's picture

Corzine is lower than whale shit

Sat, 03/29/2014 - 10:54 | 4605315 Kirk2NCC1701
Kirk2NCC1701's picture

In the Marianna Trench. Hence, "Marianna-Corzine stench".

And the Fe(de)ral Judges are from the dephts of Tartarus: Tarts R US.

Sat, 03/29/2014 - 10:41 | 4605299 Atlantis Consigliore
Atlantis Consigliore's picture

http://youtu.be/6NASl_Qy2sc  DA DEVIL MADE ME DO IT....

Sat, 03/29/2014 - 11:08 | 4605327 Kirk2NCC1701
Kirk2NCC1701's picture

That guy was funny! In fact, all sitcoms in the 70s were very funny.

Now black comedians just talk smack/trash, and that supposedly passes as "humor". How far society has fallen.

Sat, 03/29/2014 - 10:49 | 4605307 Duc888
Duc888's picture

 

 

Celente's gonna blow a fuckin' head gasket.  I see an aneurysm in Geralds near future, sad to say.  His next few rants are likely to be epic.

Sat, 03/29/2014 - 13:38 | 4605603 pupdog1
pupdog1's picture

I got tired of the screaming on cue.

Sat, 03/29/2014 - 10:51 | 4605309 observer007
observer007's picture

US-Laser-Weapon-Test on 8Mar14 at Diego Garcia, the day MH370 disappeared possibly there

 

According to reports from plane-spotters, Israel has an identical Malaysia Airlines Boeing 777-200 in storage in Tel Aviv since 2013-11-04 . The only visible difference between the missing plane and the one in Tel Aviv would be its serial number. What do the Israelis have planned with the twin Malaysia Airlines plane?

http://homment.com/US-Laser-Weapon-Test-on-8Mar14-at-Diego-Garcia-same-day-MH370-disappeared-possibly-there

Sat, 03/29/2014 - 10:51 | 4605311 buzzsaw99
buzzsaw99's picture

This is why you DO NOT want to be a corporate accountant. You have to write fiction on a quarterly basis to keep your job and when the shtf you are going to be the first one thrown under the bus and raped in prison. Twice fucked.

Sat, 03/29/2014 - 11:14 | 4605332 Kirk2NCC1701
Kirk2NCC1701's picture

If such a person does not pack a parachute and pull the rip chord in time, it's their own fault for being that stupid and naive.

They need to either "call Saul", or call Black or Casey, before they pull a "Ken Lay": die, then move to S. Am.

Sat, 03/29/2014 - 13:35 | 4605600 Chuck Knoblauch
Chuck Knoblauch's picture

Argentina. It's not safe, Ken.

Sat, 03/29/2014 - 10:53 | 4605314 Save_America1st
Save_America1st's picture

Hmmmmm.....give her 5 minutes and I'm sure Anne Barnhardt would totally destroy MFG and Corzine in a court case.  it would be toal destruction if the prosecution is able to obtain full disclosure of all of MFG's records in court.

Sat, 03/29/2014 - 10:58 | 4605319 WTF2
WTF2's picture

What took them so long??

Sat, 03/29/2014 - 11:21 | 4605347 Conax
Conax's picture

They waited until the required chutzpah was accumulated before they made their move.

Sat, 03/29/2014 - 11:01 | 4605322 paddy0761
paddy0761's picture

If you like your collapse, you can keep your collapse.

Sat, 03/29/2014 - 11:09 | 4605329 pezhead
pezhead's picture

PwC Fraud Academy "Experts in Fraud" --- blahahaha! DeRp!

http://www.pwc.com/gx/en/consulting-services/fraud-academy.jhtml

 

Sat, 03/29/2014 - 11:16 | 4605336 Kirk2NCC1701
Kirk2NCC1701's picture

Is there an award for Best Irony?

Sat, 03/29/2014 - 11:14 | 4605333 Chuck Knoblauch
Chuck Knoblauch's picture

Big 4 to become Big 3 very soon. I always thout it would be KPMG to go first, but PwC is a good sacrifice.

Sat, 03/29/2014 - 11:20 | 4605345 falak pema
falak pema's picture

Yes you can : Reaganomics now is sounding like this memory loss formula :

Greed WAS good, back in the early 1980s. But then we overdid it...

Read more: http://www.businessinsider.com/companies-need-to-pay-people-more-2014-3#ixzz2xMhyoaM8

If you be ethical you can't make this type of shit up.

If you be a NWO/Reaganomics capitalist then its as natural as Monsanto's GM corn on the cob! 

Sat, 03/29/2014 - 11:24 | 4605351 pupdog1
pupdog1's picture

The post-MF support of Corzine by Holder, Obama, and the National Fool Biden is one of the most disgusting spectacles in American history.

These four are equally guilty.

 

Sat, 03/29/2014 - 12:42 | 4605507 scraping_by
scraping_by's picture

Don't leave out all the anonymous suits who do the deeds and pick up the crumbs. Without all the worker bees who obey the order to compound felonies, they're just bloviating.

Sat, 03/29/2014 - 13:36 | 4605601 pupdog1
pupdog1's picture

...kind of like the Nazi cattle car operators.

Sat, 03/29/2014 - 11:34 | 4605366 Shad_ow
Shad_ow's picture

Decency is preventing me from typing the words I would like to use to describe the sick and evil people who are responsible for the theft of trillions.  I would be banned if I did.  God help us.

Sat, 03/29/2014 - 11:36 | 4605369 undertowed
undertowed's picture

Whorezine is suing his accomplices now? What a piece of shit this guy is

Sat, 03/29/2014 - 11:40 | 4605376 matrix2012
matrix2012's picture

A case carrying this Believe-It-Or-Not quality like this MF one only happens in the Land Of Freedum!!

Sat, 03/29/2014 - 12:16 | 4605439 Van Halen
Van Halen's picture

The Limbaugh Theorem is proven true again! SHTF and there's no trace of any ties to Corzine, who is tied directly to Obama.

Sat, 03/29/2014 - 12:19 | 4605446 thamnosma
thamnosma's picture

I only wish Corzine had tried this in China.  They do hang banksters.

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