Exhibit A: MF Global's Admission

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Fri, 11/11/2011 - 10:00 | 1869497 jcaz
jcaz's picture

Corzine= Perp Walk

Fri, 11/11/2011 - 10:04 | 1869513 Rip van Wrinkle
Rip van Wrinkle's picture

Corzine=Next Treasury Secretary

Fri, 11/11/2011 - 10:29 | 1869585 Arius
Arius's picture

Someone tell Joe Kerner at CNBC Squawk Box ,... the guy still believes there is no shortfall ... keep repeating it ... what advice should one expect from a former stock broker???

entertaining tv though ... kashkari hit it in the head ...

Fri, 11/11/2011 - 10:35 | 1869604 knukles
knukles's picture

Joe is just dully boringly dimwitted at times.  As in most.  He's not a convincing tool.
Sorkiin however, is not oly a fucking tool, apologista for Wallawallastreet, but is an arrogant little prick, to boot.
Good thing boy Sorkin came along so Joe can assume the chimera of mature eklder statesman.  Not.

Behold, Bevis and Butthead 
(huh ha ha hha hahah ha ha ha ha hha  aaa)

Fri, 11/11/2011 - 10:38 | 1869610 Harlequin001
Harlequin001's picture

Hey Michael, know any good porn sites?

just wondering what you do not in your spare time...

Fri, 11/11/2011 - 11:18 | 1869734 kaiserhoff
kaiserhoff's picture

So who was on the other side of this rape of the customers?  They have some 'splainin' to do.

Fri, 11/11/2011 - 10:36 | 1869607 jcaz
jcaz's picture

LOL- true, pretty fine line between the two....

Fri, 11/11/2011 - 11:02 | 1869667 topcallingtroll
topcallingtroll's picture

Yep no perpwalk.

He knew the rules very well.

Well played, Corzine, well played.
But you are too radioactive for politics now.
Not that you care. You have untouchable millions in various trust-like instruments.

Fri, 11/11/2011 - 10:06 | 1869520 Pladizow
Pladizow's picture

"When plunder becomes a way of life for a group of men living together in society, they create for them selves in the course of time a legal system that authorizes it and a moral code that glorifies it" -  Fredric Bastiat.

The PONZI continues!

Fri, 11/11/2011 - 10:11 | 1869534 FEDbuster
FEDbuster's picture

Corzine, Stanford and Madoff cellmates? 

Fri, 11/11/2011 - 10:39 | 1869614 Harlequin001
Harlequin001's picture

Yes, as soon as they let Madoff and Stanford out.

I believe Corzine has a few friends...

Fri, 11/11/2011 - 10:29 | 1869584 cirrus
cirrus's picture

Bastiat is awesome...great quote.

Fri, 11/11/2011 - 10:36 | 1869606 craven moorehea...
craven moorehead the 1st's picture

that is a brilliant quote - thanks for posting

Fri, 11/11/2011 - 11:55 | 1869861 pods
pods's picture

I am circulating my copy of The Law to people at work.  Most cannot understand it, as they cannot comprehend that legalized plunder is morally wrong.

pods

Fri, 11/11/2011 - 10:17 | 1869550 4shzl
4shzl's picture

Time for a pop quiz.  Y'all remember the analogy section on the SATs, right?

 

Jerry Sandusky is to Joe Paterno as Jon Corzine is to:

A) Gary Gensler

B) Mary Shapiro

C) Eric Holder

D) Barack Obama

E) All of the above

 

OK, maybe that's too many proper names.  Let's try it this way:

 

The Penn State locker room is to 10-year-old boys as the Chicago Mercantile Exchange is to:

A) Individual investors

B) Professional speculators

C) Commercial hedgers

D) Pension fund managers

E) All of the above

 

Students who unsure of the answers are invited to stay after school for extra "coaching" . . .

Fri, 11/11/2011 - 10:25 | 1869576 aint no fortuna...
aint no fortunate son's picture

Just sent:

Mike,

Sorry to hear your job app for MF Global fell through. 

Not to worry, I hear Jeffries is looking for bright regulators looking for part time work.

Please pass my best regards on to all the hard working folks at the SEC who NEVER replied to my two complaints and requests for investigations into fraudulent activity by companies I was ripped off by.

Have a nice day.
xoxo.
One of the 99.9999999999999999999999999999999999

Fri, 11/11/2011 - 10:41 | 1869618 narnia
Fri, 11/11/2011 - 10:57 | 1869654 disabledvet
disabledvet's picture

"I can neither confirm nor deny..." doesn't work when you don't care about the half billion (give or take) that's missing.

Fri, 11/11/2011 - 10:00 | 1869498 Irish66
Irish66's picture

an email for 600 million? at night

Fri, 11/11/2011 - 11:34 | 1869786 jelyfish
jelyfish's picture

I think the segragation idea is revisionary.  MF was just that leveraged.

Fri, 11/11/2011 - 10:01 | 1869504 Quinvarius
Quinvarius's picture

It is always worse than they admit at first.  It is always worse than you will ever know.

Fri, 11/11/2011 - 10:24 | 1869572 HelluvaEngineer
HelluvaEngineer's picture

It was obvious what happened when margin requirements we lowered for MF customers.  Every executive of every bank knows exactly what is going on, and that absolutely no one will be held accountable.

Fri, 11/11/2011 - 10:50 | 1869637 Harlequin001
Harlequin001's picture

wtf it's only money, and there's no shortage of that, right?

taxpayers problem, whoever they are...

Fri, 11/11/2011 - 10:58 | 1869655 Quinvarius
Quinvarius's picture

Can you imagine what would have happened if the real truth were acted on that all of MF Global customer accounts were drained to zero?  All those guys would just walk away from their positions and leave the CME on the hook.  The CME would have folded.

Fri, 11/11/2011 - 10:59 | 1869659 disabledvet
disabledvet's picture

More like "he did it" from the way I see things.

Fri, 11/11/2011 - 11:45 | 1869818 ToNYC
ToNYC's picture

The Castle Bravo H-bomb test is what the CFTC needs to sweep under the Washington DC rugs for what it did to the last standing fair game in Chicago. The hand reached up from NY Hell to grab and smear the last honest man's space.

Fri, 11/11/2011 - 10:02 | 1869506 fuu
fuu's picture

So nice to have all of those SEC email addresses now.

Fri, 11/11/2011 - 10:07 | 1869524 topcallingtroll
topcallingtroll's picture

Hell yeah! This will be fun.

Crank yankers...targets identified.....fire when ready.

Fri, 11/11/2011 - 10:03 | 1869509 PeterLemonJello
PeterLemonJello's picture

Stay classy MF......"Genral Counsel"

Fri, 11/11/2011 - 10:04 | 1869511 Doode
Doode's picture

I can see why they went under - because they have Genral instead of a General for a lawyer.

Fri, 11/11/2011 - 10:04 | 1869514 The Fonz...befo...
The Fonz...before shark jump's picture

General state of confusion

Fri, 11/11/2011 - 10:05 | 1869515 Dr. Engali
Dr. Engali's picture

What's a meer  600 mil? The market doesn't seem to care. Maybe that's why the market hasn't sold off since MF's collapse. People are figuring..well the firms are going to steal it anyway. I might as well put it in the market and have it stolen legitimately.

Fri, 11/11/2011 - 10:23 | 1869567 Ancona
Ancona's picture

Mere is what you were searching for Doc. Meer is part of Kat.

Fri, 11/11/2011 - 10:24 | 1869574 Dr. Engali
Dr. Engali's picture

Fat finger.

Fri, 11/11/2011 - 11:03 | 1869674 disabledvet
disabledvet's picture

Why pay billions for something that's now going to be given away? I'm surprised the market isn't higher frankly...

Fri, 11/11/2011 - 10:05 | 1869516 topcallingtroll
topcallingtroll's picture

Ha ha this will be fun!

I am going to send taunting emails with official sounding titles using big words so that they inadvertently open them.

Crank yankers...start your computers!

Fri, 11/11/2011 - 10:05 | 1869517 SheepDog-One
SheepDog-One's picture

What a den of snakes...you'd think news like this blatant piracy on Wall St would send everyone scrambling to withdraw any money they have from the grasp of their claw hands, but apparently not. Calm as Hindu bulls,

Fri, 11/11/2011 - 10:09 | 1869527 topcallingtroll
topcallingtroll's picture

It will all be clawed back and returned to customers eventually.

Bye bye bonus!

Fri, 11/11/2011 - 10:15 | 1869542 Dr. Engali
Dr. Engali's picture

What planet are you from? Have you been awake for the past three years? The standard operating proceedure is: the firm collapses ,gets bail out money- large bonuses and the clients are fucked. Claw backs..that's a good one.

Fri, 11/11/2011 - 10:35 | 1869605 MachoMan
MachoMan's picture

Everyone had to recheck their code books after all the clawbacks in the madoff case(s)...  It's a really, really big deal and this is why people opt to not take their golden parachutes (coming back anyway).  The trick is to ensure plausible deniability through the ordinary course of business/established norms and have quite a bit of time buffer between your payments and the ol' collapse.

It's easy to identify payments to individuals directly...  it's vastly more difficult to identify payments to entities in which those individuals might hold minority interests.  How deep anyone looks is simply a function of how much money is at stake and who it was that got screwed...  my guess is we get a whole bunch of juicy tidbits out of this one...  and discovery will take it to the core.

The neat part is, even if regulators are inept/apathetic, the civil side attorneys won't be.

Fri, 11/11/2011 - 10:42 | 1869619 Harlequin001
Harlequin001's picture

or you might want to invest or structure your employment contracts through an offshore trust or company that can be shut down at the first sign of trouble...

End of the line...

Fri, 11/11/2011 - 14:32 | 1870463 MachoMan
MachoMan's picture

The only way that's the end of the line is if there is not enough money in dispute to justify paying for discovery (and even then [bad] attorneys might still look).

The trick is to exercise all options/receive all payments as soon as they become available...  your only defense is time because you never know when the thing is going to crumble.

In some very prominant recent cases an unnamed company thought it would be cute to have a "mothership" in one country and all of its satellites in other countries had no assets and "beamed up" all their profits to the mothership.  (the logic being they would simply flip the bird to any creditors in the event of an adverse judgment).  Well, needless to say, the triers of fact all thought this to be bullshit and imposed liability on the mothership for the actions of the satellites.

Rarely is someone ever clever enough to hide all traces...  the trick is to be a big enough player to where you don't have to (i.e. you just change the laws).

Fri, 11/11/2011 - 11:05 | 1869681 disabledvet
disabledvet's picture

"this time is different."

Fri, 11/11/2011 - 20:51 | 1869825 ToNYC
ToNYC's picture

Clawbacks are unicorn poop. Lose the shovel, chump.

Fri, 11/11/2011 - 10:07 | 1869521 yogibear
yogibear's picture

Fraud has become the accepted normalcy. Corzine finds an out through his political affiliations and some other people take the punishment.  

Fri, 11/11/2011 - 10:15 | 1869545 Alex Kintner
Alex Kintner's picture

O'Pardon coming in 3,2,1...

Fri, 11/11/2011 - 10:36 | 1869587 spanish inquisition
spanish inquisition's picture

Note she didn't say we are looking for the money to be returned, it's looking into "circumstances". I am guessing that she wants to investigate and make sure it was stolen fair and square.

Fri, 11/11/2011 - 10:07 | 1869523 DCon
DCon's picture

Were PWC being treated to stripper parties in the boardroom when they should have been auditing?

 

Fri, 11/11/2011 - 10:08 | 1869525 wang (not verified)
wang's picture

February 4, 2010
Mr. David A. Stawick
Secretary to the Commission
Commodity Futures Trading Commission

Dear Mr. Stawick:
MF Global Inc.1 (“MF Global”) and Newedge USA, LLC2 (“Newedge”) jointly submit these
comments regarding the petition of the Chicago Mercantile Exchange (“CME”) that the
Commission issue an order under Section 4d of the Commodity Exchange Act that would permit
the CME and futures commission merchants clearing through the CME to commingle customer
funds used to margin, secure, or guarantee credit default swaps (“CDS”) cleared by the CME
with other funds held in the customer segregated account.

...

Conclusion

At this time, MF Global and Newedge are not satisfied that the
risks to futures customers’ funds and to our own guaranty deposits - risks we never signed up for
– may adequately be assessed or contained. Under all of these circumstances it is fundamentally
unfair to expect futures customers to be exposed to these risks. It is for all these reasons that MF
Global and Newedge – dynamic competitors in futures and other financial services – come
together to respectfully but strongly urge the Commission to deny the CME’s petition at this
time.

 

http://www.cftc.gov/stellent/groups/public/@requestsandactions/documents...

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