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Guest Post: The Audacity of Bonuses At MF Global

Tyler Durden's picture





 

Submitted by Nomi Prins

The Audacity of Bonuses At MF Global

In the spirit of George Orwell’s Animal Farm commandment: “all animals are equal, but some animals are more equal then others” comes the galling news that bankruptcy trustee, Louis Freeh, could approve the defunct, MF Global to pay bonuses to certain senior executives. This, despite the fact that nearly $1.6 billion of customer funds remains “missing” or otherwise partially accounted for, yet beyond the reach of those customers, perhaps forever, since before the firm declared bankruptcy on October 31, 2011.

Another commonality between the MF Global incident and Animal Farm is the abject rewriting, or re-interpretation, of rules. At the farm, the rule ‘No animal shall drink alcohol” was ultimately ‘re-remembered’ as ‘No animal shall drink alcohol to excess.’ Absent opposition to this particular fact alteration, the pigs got drunk. It wasn’t pretty.

The Orwellian nature of finance is spiraling out of control. It was acutely demonstrated during the fall 2008, merge-and-be-bailed period, and subsequently, through mainstream acceptance that “too big to fail” validates the subsidization of reckless banking practices (bail first, ask questions or consider tepid regulation later), and the European debacle.

Three wrinkles of audacity underscore the potential MF Global bonus approvals. First, there is the moral responsibility layer. MF Global, classified as a broker-dealer wasn’t specifically subject to the investment-advisor fiduciary rule that requires ‘systemic safety and soundness’’ with respect to retail customers. But, comingling customers’ funds inappropriately with the firm’s, as former chief, Jon Corzine’s European bets were blowing up, was an abject misinterpretation of the rule's intent.

Aside from that, MF Global lied about funds segregation to its customers, which constitutes fraud. The final page of the firm’s brochure touts “the strict physical separation of clients’ assets from MF Global accounts.”

Separately, MF Global broker-dealer activities were subject to SEC oversight and restrictions on its use of client funds. During any normal investigation, like say for embezzlement, funds should be frozen until issues are resolved. Releasing any bonus pay until this matter is settled is just plain wrong.

The reason for possibly allowing bonuses for MF Global chief operating officer, Bradley I. Abelow, finance chief, Henri J. Steenkamp, and general counsel, Laurie R. Ferber follows the same twisted logic pervading Wall Street: no one else can do the job as well.

These people are apparently so special that despite incompetence, negligence or potential malfeasance in diverting customers’ funds away from their rightful spots, their expertise is critical to the bankruptcy proceeding. In that realm, their ‘job performance’ will help Freeh "maximize value for creditors of the company”. Translation: it will ensure banks like JPM Chase keep their cut, since customers are not creditors. Again, plain wrong.

But forget simple matters of right and wrong for a moment. After all, this is Big Finance: what's most important is what’s not necessarily what’s legal or illegal, but more practically, what you can get away with and what you can’t. In that regard, the sheer impotence of regulators, the Department of Justice, and the FBI are enabling factors in perpetuating financial crimes. 

In early 1933, during the Depression that followed the 1929 Stock market Crash, Democratic president, FDR and Republican Treasury Secretary, William Woodin, declared a bank holiday, during which Treasury Department agents examined banks’ (which included at the time, broker-dealers) books to determine solidity and solvency.

Today, our regulatory bodies are incapable, or simply don’t want to be bothered with, tracing money and returning it to the public customers to whom it belongs. The inability to independently examine MF Global’s books, without its executive involved, reveals the sorry state of our financial system.  In this post-Glass-Steagall-repeal world, the mixing of customer money and speculative betting – whether at a super-market bank or broker-dealer, whether involving subprime loans packages or European Sovereign debt, poses too dangerous a level of complexity. If regulatory bodies can’t, or won’t, diminish the related risk, more concrete Glass-Steagall boundaries throughout the financial framework should be resurrected.

Meanwhile, two senators have taken on the bonus-pay fight. Senator Amy Klobuchar (D., Minn.), member of the Senate Agriculture Committee investigating MF Global, wrote to Freeh that the plan is "unacceptable." Senator Jon Tester (D., Mont.), whose constituency includes a number of farmers with funds in the ‘missing’ category, called it "outrageous.”

On Sunday, Freeh's spokesperson released a statement saying the senators’ concerns were ‘noted’ and a final decision on the bonuses hadn’t been made. But to the extent that the money trails shrouding MF Global’s final moments remain more apparent to its former employees than external examiners, it’s likely the people involved in the wreckage, will be paid extra for sorting thru it. And, that’s an expensive, outrageous, shame.

 


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Mon, 03/12/2012 - 16:44 | Link to Comment narnia
narnia's picture

I'm opposed to virtually all government scope & the taxes required to fund such nonsense, but I'd personally vote for a special 1000% tax on MF global bonuses.  I'd also make that tax act applicable to bonuses from any financial institution without presentation of a credible mark-to-market balance sheet.

Mon, 03/12/2012 - 17:30 | Link to Comment Rahm
Rahm's picture

HANG CORZINE!

Mon, 03/12/2012 - 18:01 | Link to Comment trav7777
trav7777's picture

what the fuck, shouldn't EVERY spare dime of MFG's "assets" be encumbered and frozen due to the BK and the avalanche of claims against them??!?!

They freeze accounts of regular people with a phone call or a signed piece of freakin paper all the damned time and this fucking organization that is BANKRUPT is still going to pay BONUSES?!?!

How much longer before people start lighting matches?

Mon, 03/12/2012 - 18:21 | Link to Comment Rainman
Rainman's picture

yup..this economic fascism in full bloom sure gets confusing to us commoners

Mon, 03/12/2012 - 18:30 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Free Jon Corzine!!!!

 

Oh wait......he is.

 

Mon, 03/12/2012 - 23:57 | Link to Comment savagegoose
savagegoose's picture

freedom aint enough, give him a big fat bonus, he's suffered a lot.

Tue, 03/13/2012 - 00:36 | Link to Comment Harlequin001
Harlequin001's picture

He's been very 'industrious' hasn't he?

 

Tue, 03/13/2012 - 02:45 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Breaking @ 1:01 am est:

Joe Nocera, one who rarely calls out Wall Street & The Financial Scum Pond for what it is, actually has an article out tonight in The New York Times (another rag that pretends it doesn't support Crony Manhattan CapitalKleptocracy, but that really does; see Andrew Ross-Sorkin as just one example of their fine staff of sucktards), where he actually states Jon Corzine & MF Global clearly committed serious crimes and should be prosecuted without exception:

 

Nocera: Is MF Global Getting a Free Pass?

 

#TheImportantThingIsThatJonCorzineStole1.6BillionUSD&ShouldRemainFree4Ever

Mon, 03/12/2012 - 18:41 | Link to Comment Confused
Confused's picture

Defies logic right? 

 

Sort of like buying insurance on a bond........

 

Laws don't matter for some.

Mon, 03/12/2012 - 16:46 | Link to Comment Clueless Economist
Clueless Economist's picture

Louis Freeh...this is the same nitwit putting his nose into the Penn State/Little Boys case at the behest of the clueless board of trustees

Mon, 03/12/2012 - 16:58 | Link to Comment Boxed Merlot
Boxed Merlot's picture

Louis Freeh...

 

And the same ex-FBI head chosen by Teneo's founder to go lightly on his wife's bad memory of having stacks of FBI files laying around the white house residence who by now in her capacity as US secretary of state is asking for the US to come and strip search Syria on their way into I'm a dinner jacket's homeland.

 

HA!

Mon, 03/12/2012 - 19:01 | Link to Comment MiguelitoRaton
MiguelitoRaton's picture

Make the individuals personally responsible for the money not returned to the clients. My guess is that they will be volunteering to help recover the money at no charge!

Tue, 03/13/2012 - 00:38 | Link to Comment Harlequin001
Harlequin001's picture

But that's the whole point of limited liability isn't it, so that individuals aren't personally responsible?

Seems to me that someone should have done better DD on their account issuer...

Tue, 03/13/2012 - 07:39 | Link to Comment Archduke
Archduke's picture

DD and limited liability has nothing to do with it.  Fraud is criminal and the domain of individuals.

What this is, is a blatant payoff to upper execs to keep silent and protect the stolen monies.

 

 

Wed, 03/14/2012 - 21:09 | Link to Comment Harlequin001
Harlequin001's picture

Rubbish.

Mon, 03/12/2012 - 18:02 | Link to Comment sgt_doom
sgt_doom's picture

Same nitwit who supports American-killing terrorists:

http://original.antiwar.com/giraldi/2012/03/07/the-meks-useful-idiots/

The MEK has been on the State Department roster of foreign terrorist organizations since the list was established in 1997. Its inclusion derives from its having killed six Americans in the 1970s and from its record of violence both inside and outside Iran since that time. The group was driven out of Iran, denied refuge in France, and eventually armed and given a military base by Saddam Hussein.

......

The well-connected friends of the MEK include well-known neocons like John Bolton and James Woolsey. And there is also the paid supporting cast including former head of the Democratic Party Howard Dean; former New York mayor Rudy Giuliani; ex-CIA director Michael Hayden; former generals Anthony Zinni, Peter Pace, and Hugh Shelton; former congressman Lee Hamilton; ex–attorney general Michael Mukasey; former Homeland Security director Tom Ridge; former national security adviser Jim Jones; ex-senator Robert Torricelli; former FBI director Louis Freeh; and former New Mexico governor Bill Richardson. Current representatives Dana Rohrabacher and Brad Sherman also openly support the MEK and joined 96 other congressmen in calling for the lifting of the terrorism label.

http://www.huffingtonpost.com/2011/08/08/mek-lobbying_n_913233.html

http://www.delistmek.com/bipartisan-group-of-u-s-leaders-calls-on-state-department-to-remove-iranian-dissidents-from-terror-list-urges-un-to-protect-them/

Tue, 03/13/2012 - 00:43 | Link to Comment Harlequin001
Harlequin001's picture

so these terrorists are not terrorists then?

Riiight... They must be freedom fighters then...

It's good that we have a distinction isn't it, otherwise we could all be terrorists today and not tomorrow depending entirely on someone's whim...

Mon, 03/12/2012 - 16:46 | Link to Comment SMG
SMG's picture

Time for pitchforks and torches.

Mon, 03/12/2012 - 16:48 | Link to Comment Clueless Economist
Clueless Economist's picture

aint gonna happen at least until lardass americans (Species: Obestius Americanus) stop watching Jersey Shore or Celebrity Dancing with the American Talents crap

Mon, 03/12/2012 - 17:03 | Link to Comment There is No Spoon
There is No Spoon's picture

By that time the non Obestius Americani will have gone Galt and taken their physical gold and silver out of the cities and suburbs. Obestius Americani will get mad once food prices inflate to the point of pain, which doesn't have to be much, but it looks to be a few years away. Until then, the circus continues with ever louder bells and whistles to distract the overfed, overmedicated "rugged individualists" who take money from the government any way possible.

It's really getting more obvious by the day that the criminals at the top are playing for an endgame, and we are at or almost at the penultimate node. Maneuvering for more war, more stimulus, inflation targets, looting entire countries, unelected leaders, looting customer accounts, and so on. All this is occuring right out in the open which is just amazing, that regular people in the U.S. are so disconnected from what's happening, that the thieves don't even have to hide their actions. Anytime I express concern for our future as a country, I'm labeled "negative" or "cynical," and these are educated people calling me that. So our society has failed, and while I don't subscribe to all of Rand's credo, going Galt seems like the only thing anyone can do to prevent getting caught up in the inevitable disorder that's coming.

Mon, 03/12/2012 - 17:16 | Link to Comment GMadScientist
GMadScientist's picture

Slight hitch: "going Galt" requires you to have something society needs.

Rand was a pretentious twit.

Mon, 03/12/2012 - 19:52 | Link to Comment CynicLaureate
CynicLaureate's picture

The whole point is that if you want something from society, you'd better have something society wants from you.

Value for value.

Tue, 03/13/2012 - 00:46 | Link to Comment Harlequin001
Harlequin001's picture

yeah, like paper money, and the ability to move it from one column to another for a rather large fee...

Society simply can't exist without these people...

Mon, 03/12/2012 - 17:03 | Link to Comment BeetleBailey
BeetleBailey's picture

You left out the other species: Doofus Americanus, who couldn't find Texas on a map with a Garmin, two hands, a pointer and hints, let alone knowing anything else, and Ignoramus Politicalopolous, who are mesmerized by all the politicans words and are also as dumb as a jackass.

Mon, 03/12/2012 - 17:49 | Link to Comment SMG
SMG's picture

Look I know it's discouraging, but you've got to try and educate as many as you can.  It's only when everyone is educated about what's really going on can we overthrow our oppressors.  IE. Never give up.

Mon, 03/12/2012 - 17:57 | Link to Comment Baleful Runes 4 U
Baleful Runes 4 U's picture

Should only take about 58 million years, smg

Mon, 03/12/2012 - 19:54 | Link to Comment Xkwisetly Paneful
Xkwisetly Paneful's picture

Give or take 10million years that time is available.

 

Mon, 03/12/2012 - 17:22 | Link to Comment LongSoupLine
LongSoupLine's picture

 

 

Hmmm...nothing on the MSM outlets anywhere...nothing.  gasp...

Mon, 03/12/2012 - 16:46 | Link to Comment Gubbmint Cheese
Gubbmint Cheese's picture

the audacity of grope..

Mon, 03/12/2012 - 16:59 | Link to Comment sessinpo
sessinpo's picture

Play on words are so fun.

MF bone us

Mon, 03/12/2012 - 17:23 | Link to Comment Zero Govt
Zero Govt's picture

dunno about "grope" but how about clawback ?

claw back every friggin cent of Corsine and Co's executive wage packets until every cent of customers segregated funds are repaid

..and f**k paying ex MF'ers a cent for going back to work to sort out the shambolic paperwork.. the paper trail is there, people had to have made decisions (and be accountable for them) moving customer money out of accounts to cover gambling junkies gone bad

these crooks are lucky not to be in jail already, they should be grateful for a day outside of prison to sort the books out

Mon, 03/12/2012 - 21:15 | Link to Comment FeralSerf
FeralSerf's picture

I would think that instead of giving them cash bonuses that maybe they would prefer having their prison sentences cut from 20 years to just 10 years.   Why aren't they in the same place Martin Armstrong was?

Mon, 03/12/2012 - 16:46 | Link to Comment sampo
sampo's picture

Jonnie for Treasury Secretary!

Mon, 03/12/2012 - 16:49 | Link to Comment resurger
resurger's picture

i read Nassim Taleb "fooled by randomness" book long time ago and he said: why the CEO's are paid that much money? because of on thing...

Their decisions

So let me get this straight, if a mother fucker makes a wrong decision and go leverage european junk bonds 100000zillion:1 and lose the clients money how the fuck do these people have the audacity to ask for a bonus?!!!

Mon, 03/12/2012 - 17:55 | Link to Comment mrdenis
mrdenis's picture

 ...why are they calling it a performance bonus ?

Mon, 03/12/2012 - 18:46 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

The destruction was extremely efficient.

 

Mon, 03/12/2012 - 18:52 | Link to Comment Amish Hacker
Amish Hacker's picture

2008: I can't believe these crooks are getting huge bonuses after running their companies into the ground.

2012 I can't believe these crooks are getting huge bonuses after stealing the money in my account.

Mon, 03/12/2012 - 19:10 | Link to Comment Problem Is
Problem Is's picture

Tyler: Where is the +5 button????

2008: I can't believe these crooks are getting huge bonuses after getting massive taxpayer TARP and Fed bailouts...

Fixed it a little for ya...

 

Mon, 03/12/2012 - 19:16 | Link to Comment grid-b-gone
grid-b-gone's picture

Directors give them credit (and bonuses) for creating and working a system from which there is a payoff for being either correct or incorrect.

As the result of the strategies they developed, their firms can take larger risks for greater upside potential, but downside risk is covered by OPM. 

The one key element is that prison time seems to have been largely eliminated from the risk equation, even to the point that comingling customer funds is no longer sacrosanct. Bonuses however, still are.

By using OPM as risk capital and tagging failures to OPM, they created a perfectly skewed business model. From that warped perspective, which is the only one that matters to their bosses, they deserve greater bonuses than ever before. 

 

Mon, 03/12/2012 - 20:45 | Link to Comment fattail
fattail's picture

They didn't "lose" their client's money; it was stolen from segregated accounts.  There will be torches and pitch forks when they steal from people who feel more helpless than the customers at MF Global.  I am all for blood, but the opportunity cost for me of maybe going to prison is to great.  Chalk it up to a hard lesson learned, and move on.

Mon, 03/12/2012 - 16:52 | Link to Comment Sandmann
Sandmann's picture

Louis Freeh is part of the Magic Circle...FBI Director to Distributor of Largesse to Felons......only in Politics

Mon, 03/12/2012 - 16:52 | Link to Comment Conrad Murray
Conrad Murray's picture

Someone needs to find Corzine and take his scalp and teeth. Use the proceeds from an auction of those goods to help pay back the clients.

Mon, 03/12/2012 - 20:52 | Link to Comment Mad Mad Woman
Mad Mad Woman's picture

If Corzine's ass doesn't land in jail, you want to bet that those Mid-West farmers he screwed will be coming after him with AK-47's and Uzi's?  They will hunt him down. My money is on the farmers that he screwed.

Mon, 03/12/2012 - 16:53 | Link to Comment Jason T
Jason T's picture

http://www.youtube.com/watch?v=7ERhLH4aFZ0

 

last part of animal farm.. 

Mon, 03/12/2012 - 16:53 | Link to Comment michael_engineer
michael_engineer's picture

"It was acutely demonstrated during the fall 2008, merge-and-be-bailed period, and subsequently, through mainstream acceptance that “too big to fail” validates the subsidization of reckless banking practices (bail first, ask questions or consider tepid regulation later), and the European debacle."

Kind of looks like IBG YBG run amok doesn't it?

I'll Be Gone, You'll Be Gone.

Mon, 03/12/2012 - 16:55 | Link to Comment semperfi
semperfi's picture

Well, when the citizenry just stand by and watch the govt trash The Constitution and the rule of law, most notably nixing gold & silver as our money - and do not protest & riot - this is what we get & deserve. 

Mon, 03/12/2012 - 16:56 | Link to Comment Eric L. Prentis
Eric L. Prentis's picture

Bonuses for bankers bankrupting MF Global and stealing $1.6 billion dollars of customer money in segregated accounts? US capitalism is obviously rigged.

This is a big raspberry given by the bankers. Their lapdog politicians will protect the bankers, because they paid a few million dollars in campaign contributions to be able to rape, pillage and plunder.

BANKERS ARE LAUGHING AT US!!!!!

Mon, 03/12/2012 - 17:15 | Link to Comment Bunga Bunga
Bunga Bunga's picture

Get over it, only some white farmers were fucked, nobody on Wall St got hurt!

Mon, 03/12/2012 - 17:37 | Link to Comment Grinder74
Grinder74's picture

That's right.  All of Holder's "people" were taken care of with the scam Pigford settlement.

Mon, 03/12/2012 - 16:56 | Link to Comment roadhazard
roadhazard's picture

How about a list of names and addresses of those getting a bonus. I'd like to send them an xmas card.

Mon, 03/12/2012 - 17:25 | Link to Comment Conrad Murray
Conrad Murray's picture

Start here - https://en.wikipedia.org/wiki/MFGLQ#Board_of_directors

Fire up spokeo or intellius and have at it. Get a pad going and link it up for editing before creating the final paste. I'm sure there are people out there willing to help...

EDIT: There may be some information to be had in the class action that was filed against these weasels. Have to find the filing. Public records are out there. No harm in compiling; everyone likes a nice xmas card.

Mon, 03/12/2012 - 19:35 | Link to Comment neidermeyer
neidermeyer's picture

I like your thinking ,, the papers from "service" should have good addresses.. and they're public records ... someone needs to visit the courthouse..

Mon, 03/12/2012 - 20:44 | Link to Comment SilverSavant
SilverSavant's picture

Card, hell, these paragons of virtue need to receive presents.   I would even go so far as to suggest special delivery, as in rectal insertion. 

Mon, 03/12/2012 - 16:57 | Link to Comment scatterbrains
scatterbrains's picture

Where's Joe Stack ?

 

Mon, 03/12/2012 - 16:59 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Long guillotines.

Mon, 03/12/2012 - 17:12 | Link to Comment Popo
Popo's picture

I've always suspected it would be sniper rifles this time around -- but I suppose guillotines have a lovely historic flavor.

Mon, 03/12/2012 - 20:47 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Sometimes the old ways are better.

 

Mon, 03/12/2012 - 17:14 | Link to Comment mayhem_korner
mayhem_korner's picture

Long guillotines.

 

Dull, rusty ones at that.  Ones that need 3-4 hacks at it to get the job done.

Mon, 03/12/2012 - 19:02 | Link to Comment Amish Hacker
Amish Hacker's picture

Au contraire, mon ami. The first guillotines had exactly this problem. The cutting edge of the blade was level, and frequently failed to remove the head cleanly in one chop. Human ingenuity soon hit upon the angled blade, which created an infallible slicing effect as it fell. The head fell in the basket every time, and the crowd roared its approval.

Mon, 03/12/2012 - 19:27 | Link to Comment Conrad Murray
Conrad Murray's picture

There's something uplifting about this post being written by "Amish Hacker".

Mon, 03/12/2012 - 20:11 | Link to Comment Hulk
Hulk's picture

You know that when the amish start cutting off bankers heads, that the end is near !!!

Banker's head soup, Bitchez !!!

Mon, 03/12/2012 - 19:19 | Link to Comment Jake88
Jake88's picture

Nothing like public beheadings to scare the bejeebers out of these scumbag banksters and politicos.

Mon, 03/12/2012 - 17:03 | Link to Comment adr
adr's picture

Come on we all know the best way to get a big fat bonus is to try and figure out how to screw as many people as possible for as much as possible.

If you actually did honest work at a big bank, not only would you be fired but your reputation would be thoroughly trashed so badly from gossip that you would never be hired by anyone again.

You would be poison because through honesty you might blow the lid off the near 100% fraudulent activity wherever you worked. They can't have that kind of liability. Which is why the absolute moral bankruptcy continues unabated. Only the  most corrupt and immoral can actually be hired by the TBTF institutions.

Mon, 03/12/2012 - 17:06 | Link to Comment RickC
RickC's picture

As I understand it, those bonuses are going to people who stayed on to unwind the company.  Paying "completion" bonuses is not unusual and is probably contractual.  If this were not done, key people would have bailed and the job would never get done.

Mon, 03/12/2012 - 17:32 | Link to Comment ejhickey
ejhickey's picture

OK , promise these people bonuses if they help in the recovery of the money once the job is done.  then when their work is completed , renege on the agreement.  if they complain tell them " sorry we lied.  How does it feel?"

Mon, 03/12/2012 - 20:51 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

An even better completion bonus: finish the work and we won't set your groin on fire and put out the fire with an axe.

 

Mon, 03/12/2012 - 17:07 | Link to Comment Joebloinvestor
Joebloinvestor's picture

Everyone seems to forget about that LYING WEASEL GENSLER.

He was involved up to his eyeballs.

 

Indict, prosecute and stick his ass in jail with his buddy Jon.

Mon, 03/12/2012 - 17:12 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

new car, caviar, 4-star daydream

I think I'll by me a football team.

(text from MF J. Corzine to his "pals")

Mon, 03/12/2012 - 20:05 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

^buy

Mon, 03/12/2012 - 20:54 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

But if you ask for a rise it's no surprise that they're giving none away.

 

Mon, 03/12/2012 - 17:12 | Link to Comment eddiebe
eddiebe's picture

Clawback !

Mon, 03/12/2012 - 17:13 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

she tells it like it is

what a wench!

Mon, 03/12/2012 - 17:16 | Link to Comment Piranhanoia
Piranhanoia's picture

Your Honor;   My clients admit they stole the money they are entitled to as bonuses for their performance in stealing the money.  We don't understand the Attorney General's complaint?

Mon, 03/12/2012 - 17:20 | Link to Comment Lost Wages
Lost Wages's picture

The judge's "bonus" for faking this case is probably a lot bigger than the bonuses the three jackass executives will get.

Mon, 03/12/2012 - 17:21 | Link to Comment davood
davood's picture

They are just rubbing the sheeple's face in shit because . . . they can.

Mon, 03/12/2012 - 17:23 | Link to Comment brokenclock
brokenclock's picture

This is beyond insanity at this point.  What is it going to take for people to revolt against outright theft of customer accounts? Now they want/get a bonus.

Steal, lie. cheat and get rewarded. That is the example of leadership now in our great country.  From elected officials, business owners, & head of corporations. 

Integrity, good business, morales, and community involvement are gone, over- done.

What the heck are we going to teach our kids about being a good honest person. Heck, do the right thing and be the sucker.

We need a modern day Robin Hood to even out the balance. Maybe like this site we can have a bunch of Tyler's/ Robin hood's.

There are no good examples anymore of people standing up to do the right thing. Just people doing the wrong things get more rewards today. Truly bazarro world.

Mon, 03/12/2012 - 21:01 | Link to Comment Mad Mad Woman
Mad Mad Woman's picture

Summertime summertime sum sum summertime.  Riot time.

Mon, 03/12/2012 - 17:24 | Link to Comment eddiebe
eddiebe's picture

I suppose if we want a truly free market system, then we need to see many more MoFo Global types pull this little doozie, and maybe then the whole corrupt free market system we seem to have here in these United States will be completely shunned by everyone and a more user friendly market will take its place. Taking that logic to the next level concerning the people that got swindled, well I say its the Wild West revisited. A free range turkey shoot with a special bonus and blue ribbon trophy for the person that bags J.C.

Mon, 03/12/2012 - 17:29 | Link to Comment Everybodys All ...
Everybodys All American's picture

I can't believe someone doesn't/hasn't go/gone postal. I'm shocked - I really am by the audacity of dope of this administration.

Mon, 03/12/2012 - 18:02 | Link to Comment NotApplicable
NotApplicable's picture

If you haven't noticed yet, people only go "postal" when it benefits TPTB (Homeland Security, etc...), but for some reason, it never happens as a reaction against TPTB.

As for being shocked why it hasn't happened, well, I'd say that is normal behavior, because normal people don't go postal, but look for other options when faced with problems. People who are abnormal though, lack these thinking skills, instead being driven by emotion alone.

Now, from a trouble-maker's perspective, which one is easier to manipulate into doing your bidding? Next question, who would a trouble-maker most likely work for, TPTB, or Joe Sixpack?

Simply put, the deck is stacked in favor of the house.

Mon, 03/12/2012 - 17:27 | Link to Comment max2205
max2205's picture

There you go. That takes the cake! And ice cream.

Mon, 03/12/2012 - 17:29 | Link to Comment ejhickey
ejhickey's picture

Interesting that NO republican Senators have raised any objections.

Mon, 03/12/2012 - 19:55 | Link to Comment grid-b-gone
grid-b-gone's picture

Rarely does anyone object to a promise having been kept.

Mon, 03/12/2012 - 17:37 | Link to Comment Mercury
Mercury's picture

Animal Farm could use a movie remake.

The CGA technology alone pretty much demands it.

And as is sometimes the case with a good Shakespeare adaptation, reflections of contemporary life could be rendered, by the right hands, quite devilish and...illuminating.

I'm busy but someone make this happen.

Mon, 03/12/2012 - 17:39 | Link to Comment Ignorance is bliss
Ignorance is bliss's picture

The sheep wouldn't understand the symbolisim. An "Animal Farm" remake would just fly over their heads. The sheeple of the U.S. would say...good thing we are free in Ameirka. Where else can you squat in a 1 million dollar home with a BMW in the garage and not pay a dime....Ahhh Amerika.

Mon, 03/12/2012 - 18:04 | Link to Comment NotApplicable
NotApplicable's picture

Plus it would just be used to further condition people to accept their fate without question, much as '1984' has done. Instead of serving as a warning, it's nothing but a handbook.

Mon, 03/12/2012 - 17:47 | Link to Comment Gromit
Gromit's picture

The Corzine "know nothing" defense didn't work for Allen Stanford.

Mon, 03/12/2012 - 18:05 | Link to Comment NotApplicable
NotApplicable's picture

He ain't in the club. I'm sure they thoroughly enjoyed sacrificing him in an effort to appear tough on crime.

Mon, 03/12/2012 - 17:49 | Link to Comment Diogenes
Diogenes's picture

Some animals are equal to anything.

Mon, 03/12/2012 - 17:54 | Link to Comment navy62802
navy62802's picture

Um, maybe I'm just a fucking idiot, but why is Louis Freeh (former Director of the FBI) a trustee in the MF Global bankruptcy?

Mon, 03/12/2012 - 18:08 | Link to Comment tickhound
tickhound's picture

that's nothing...

let's worry when Goldmanites flood the CFTC, or a FedHead becomes Treasury Sec, or a CIA Director becomes President.  Until shit like that happens, we should be fine. 

The day someone like a US Senator becomes head of some PD / global commodity fund, things will begin to get baaaad.  MARK MY WORDS.

Tue, 03/13/2012 - 05:46 | Link to Comment Disenchanted
Disenchanted's picture

"or a CIA Director becomes President"

 

that's already happened...

 

https://www.cia.gov/library/center-for-the-study-of-intelligence/csi-pub...

George Herbert Walker Bush

TENURE AS DIRECTOR:
30 January 1976–20 January 1977 


BIRTH:

12 June 1924, Milton, Massachusetts 


EDUCATION:

Yale University, B.A., 1948 


APPOINTED:

3 November 1975 by President Gerald R. Ford; confirmed by Senate, 27 January 1976; sworn in, 30 January 1976 


DEPUTY DIRECTOR:

Lt. Gen. Vernon A. Walters, US Army, until 2 July 1976; E. Henry Knoche, from 3 July 1976 through remainder of Mr. Bush’s tenure (Mr. Knoche then served as Acting Director, from Mr. Bush’s departure on 20 January 1977 until Adm. Stansfield Turner was sworn in on 9 March 1977) 


EARLIER CAREER:

  • Served in World War II as naval aviator in the Pacific
  • Member of Congress, 7th District, Texas, 1967-71
  • Ambassador to the United Nations, 1971-72
  • Chairman, Republican National Committee, 1973-74
  • Chief, US Liaison Office, People’s Republic of China, 1974-75 


LATER CAREER:

  • Private business and politics
  • Vice President of the United States, 20 January 1981–20 January 1989
  • President of the United States, 20 January 1989–20 January 1993

 

Historical Document Posted: Mar 19, 2007 09:37 AM Last Updated: Jul 07, 2008 11:00 AM

Last Reviewed: Mar 19, 2007 09:37 AM

 

edit: I'm aware you were using sarcasm tickhound, but I wonder how many know/remember this about G. H. W. Bush??

the Fedhead that's now TreasSec is Geithner...the Goldmanites in govt, too numerous to list.

 

Tue, 03/13/2012 - 20:30 | Link to Comment tickhound
tickhound's picture

Hello in there............ IT'S ALL ALREADY HAPPENED!!

edit: I'm now aware, that you're aware, that I.... sorry.  nice post regardless.

Mon, 03/12/2012 - 18:08 | Link to Comment NotApplicable
NotApplicable's picture

Because he was asked nicely? Or maybe it's to protect the same people who are hoping to never hear their name in the same sentence as Sandusky? (two birds, one stone)

Whatever the reason, it seems that Louie has taken James Baker's place as chief fixer.

Mon, 03/12/2012 - 17:59 | Link to Comment bobola
bobola's picture

http://www.freehgroup.com/news/21

Michael W. Peregrine
Feb. 13, 2012

Judge Louis Freeh is uniquely positioned to influence the practical application of corporate-governance principles — and he is strongly encouraged to do so.

The estimable former FBI director is playing a leading role in the resolution of two of the most prominent organizational dramas of the year — directing the internal investigation of the Pennsylvania State University sex abuse scandal and serving as the Chapter 11 bankruptcy trustee for the estate of MF Global Holdings Ltd. and MF Global Finance USA Inc. In the former, he is expected to issue a report analyzing the facts, reaching certain conclusions and making recommendations intended to correct identified breaches of law, ethics and judgment. In the latter, one of his express statutory responsibilities is to investigate and report "fraud, dishonesty, incompetence, misconduct, mismanagement, or irregularity in the management of the affairs of the debtor." In particular, he is authorized to assert and prosecute any claims for breach of fiduciary duties on behalf of the MF Global debtors and their estates.

Nothing to see here....move on..........

 

Mon, 03/12/2012 - 18:13 | Link to Comment JohnKozac
JohnKozac's picture

I read "missing money" of more then $200k in China gets you executed (although you are allowed one criminal appeal, but the entire process must be completed within six months not ten years like the lifelong appeal process in the USA).

In other places ( I won't mention names) you get a Fat Bonus!

Mon, 03/12/2012 - 18:49 | Link to Comment Pitchman
Pitchman's picture

Some are more equal than others.  Aren't they?

The MF thing is part of the new game of Klepto-Capitalism; there's no board, no game pieces and those with the fake money make the rules as you play along. 

What has my shorts in a twist is this Fed indoctrination plan.

The NDAA authorized funds for Drones to be deployed here in the US and Eric Holder argued why it is constitutional to assassinate American citizens right here in the good old USA....  You don't suppose that 'UP WITH THE FED' course will be mandatory do you?

This country is thoroughly corrupted.  The only problem is 97% of the population does not realize it.  They are to busy trying to keep their heads above water or they are thoroughly distracted by a manufactured divide or lame entertainment.

MF Global Trustee Asks Court to Pay Executive Bonuses: The U.S. Of Absurdity
Including: MF Global Trustee Giddens Asks Customers To Release Legal Claims In Return For Their Money

Continue

Leon Panetta, Barack Obama Are Not Beholden To The Law.
- They believe it is their divine privilege to act above the law, inviting a time when the error of their ways brings tragedy to us and themselves.

Continue

Sans the rail cars and cyanide; with "our real leaders", the money power elite, confiscating citizens assets via the MF Global grift, done with the backing of the courts and regulators, tell me, how is this different from the Nazis?

The Silent Coup, Para Militarization And The New Reich

 

Sound Investment advice:

 
WAR PIGS: Carlyle Group's Lopsided IPO That No One Cares About

 

*

 

Warren Buffett: The Paradigm Puppet - Who Is Worse; The Criminals Or The Men Who Enable The Criminals?

Tue, 03/13/2012 - 09:36 | Link to Comment nowhereman
nowhereman's picture

Ah, man, you were doing so well. until you mentioned the "N" word.

No soup for you!

Mon, 03/12/2012 - 18:17 | Link to Comment Killtaker
Killtaker's picture

According to Nat Geo...half of Americans can't find NY on a map...finding $1.6 billioin is a little out of these slugs league...

 

Mon, 03/12/2012 - 18:56 | Link to Comment Problem Is
Problem Is's picture

Hey Jamie Dimon!!

Douche Bag Freeh is giving away MF Global cash you could be stealing right now!

That ought to stop those bonuses...

Mon, 03/12/2012 - 19:03 | Link to Comment Offtheradar
Offtheradar's picture

KILL THE FUCKERS!!   NOW!!!

Mon, 03/12/2012 - 19:34 | Link to Comment Offtheradar
Offtheradar's picture

Sure, junk me.  But its because these motherfuckers get away with murder time and time again that causes ordinary citizens to give up on this country.

Mon, 03/12/2012 - 19:08 | Link to Comment PMakoi
PMakoi's picture

I am feeling just a few phone calls away from cashing in my chips at this casino... selling my property and immovable stuff, and giving up on the U.S.  Bonuses to people within a crookedly run organization??!!??  You gotta be f**king kidding me?  Have they no shame?  Any honest and erstwhile exec at MFG would have tendered his resignation and found employment elsewhere when the CEO lied to Congress.  I have to go look in a mirror now, I think steam is coming out of my ears.

Mon, 03/12/2012 - 19:12 | Link to Comment Jake88
Jake88's picture

If the courts aren't going to deal with these criminals then vigilantes will.

Mon, 03/12/2012 - 19:16 | Link to Comment Problem Is
Problem Is's picture

BTW Nomi: Excellent, logically thought out post...

Mon, 03/12/2012 - 19:20 | Link to Comment Jake88
Jake88's picture

Off with their heads.

Mon, 03/12/2012 - 19:24 | Link to Comment SillySalesmanQu...
SillySalesmanQuestion's picture

Let Jamie pay their fricking bonuses... since thats where the missing money is...wadda a farce!

Mon, 03/12/2012 - 19:32 | Link to Comment dolph9
dolph9's picture

Hopefully all of you idiotic, "patriotic" folk with the "support our troops" bumper stickers shoved down my face at traffic lights will begin to wake up.

You are supporters, foot soldiers, in a corrupt empire.  They laugh and spit at you sheep as you dutifully fill the pews and little league stands.

Meanwhile, you blame the other half of the hoi polloi for not going to church on sunday, or gasp, having curiosity about the natural world and learning about science, or thinking or questioning authority.

And then you move away from and blame the blacks, the same people who you want to keep on breeding because "abortion is evil."  And then you go vote Republican, because you believe they will protect "real Americans" even as they invite more and more Mexicans to replace you at home, and hire more and more Chinese and Indians to replace you abroad.  And then you waste your money on the latest sneaker or jersey of your home team that just won the championship of whatever meaningless competition that just occurred for the 100th year.  And then you burn fuel to go volunteer to save some kids in Latin America or Africa.

Pathetic, hypocritical sheep, enablers of the theft of all of our savings.

Mon, 03/12/2012 - 19:58 | Link to Comment Bitchin Bear
Bitchin Bear's picture

Sorry you had a bad day man.  Us little people can only aspire to your superior intellect.

 

Mon, 03/12/2012 - 20:02 | Link to Comment Xkwisetly Paneful
Xkwisetly Paneful's picture

exist in the top .00000001% of all time mankind and yet whine on the internet about those .00000005% higher.

No doubt, pathetic and hypocritical.

 

Mon, 03/12/2012 - 19:28 | Link to Comment Yen Cross
Yen Cross's picture

 I was trying to find that ( HFT) post from Tyler last week. He discussed just under " Light Speed" transactional time stamping.

  MF Global wasn't an ALGO boiler room! That 1.6 is highly traceable. I have a hunch the paper trail is really ugly though!

Mon, 03/12/2012 - 19:46 | Link to Comment SillySalesmanQu...
SillySalesmanQuestion's picture

Welcome to sub-nano second markets, 3-5-12

Mon, 03/12/2012 - 19:48 | Link to Comment Yen Cross
Yen Cross's picture

Thanks SSQ. Appreciated.

Mon, 03/12/2012 - 19:35 | Link to Comment dcb
dcb's picture

these people nee to be paid off so they don't rat on others higher up the chain, in government, heads of regulatory body, corazine.

Jess don't you know how the system works

Mon, 03/12/2012 - 19:54 | Link to Comment Theosebes Goodfellow
Theosebes Goodfellow's picture

I knew for certain when Obama gave GM to the unions that the rule of law was dead in America. So to see this go on with MF Global is hardly a surprise. How can all of this be solved? What Herculean tasks must be undertaken to find the missing $1.6b USD? To be able to achieve this is apparently not in the realm of mere mortals, at least none who take a federal paycheck and call themselves either district attorneys or federal judges.

Because all it would take to find the money is to simply arrest Corzine, Abelow, Steenkamp, Ferber and the next 20 people below them and throw their asses in jail, deny them bail and let them know this:

 

   "Mr. Freeh is missing $1.6 billion. All of you can rot in jail until one of two things happens. Someone tells me where the money is or hell freezes over. Have a nicve day."

 

Then you could see how fast everyone in the lockup could roll over to state's evidence. First canary gets the sweetest deal. Everyone else goes to Ft. Leavenworth or wherever the hell they ship these crooks. Ah.., if we only had a REAL AG...

Mon, 03/12/2012 - 20:10 | Link to Comment Westcoastliberal
Westcoastliberal's picture

It must be opposite day.

Mon, 03/12/2012 - 20:42 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

I'm just curious. What do you think is the secret signal someone like Louis Freeh gives to get the job as bankruptcy trustee? You know, the signal that says, " hey I'm not here to spoil the party boys, I'm here to. . . investigate, , , NOT! HAHAHAHAHAHAHAHA fuggin -A!!!! Had you guys going there for a second now didn't I? Fucking A you guys are dumb shits.  Jeez, huh, now, where was I on this per diem fee thingie. . . there's expenses in there for lunch and dinner and a driver and a car and shit, right?"

Mr. Freeh just another douchebag crook, laughing enroute to bank.  Of course, right - would it be any other way?

Mon, 03/12/2012 - 22:47 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Ned Zeppelin wondered:

I'm just curious. What do you think is the secret signal someone like Louis Freeh gives to get the job as bankruptcy trustee?

A club tie, and a firm handshake,
a certain look in the eye and an easy smile.

 

Mon, 03/12/2012 - 20:42 | Link to Comment Mad Mad Woman
Mad Mad Woman's picture

I thought I read somewhere the other day that Mr. Freeh was going to approve the bonuses.

So when is Corzine going to be arrested and put in jail?? 

Mon, 03/12/2012 - 21:50 | Link to Comment Everybodys All ...
Everybodys All American's picture

Fact is Obama has the media on his side. Eric Holder will not prosecute and the media just says thanks be to Obama no matter how corrupt things become. Look at all the coverage his forged bith cert has gotten. It's crazy. It's like I woke up in some third world country with no rule of law.

Mon, 03/12/2012 - 21:56 | Link to Comment AU5K
AU5K's picture

2 legs good, 4 legs bad. 

 

So sad when Boxer died.

 

Can't wait for 2 central banks to both play their ace of spades on the same hand.

Mon, 03/12/2012 - 22:00 | Link to Comment tyrone
tyrone's picture

Yeah... bonuses.  Corzine is proly having his mailed to France.  He is moving in to the villa next door to TanMan Mozila by now.

Mon, 03/12/2012 - 22:25 | Link to Comment ejhickey
ejhickey's picture

I say let these scumbags have their bonus but only under the following conditions.  the bonus is to be paid in cash and is placed in a brief case.  Each brief case is placed at the south end of the La salle Street bridge over the Chicago river .  Each person who claims a bonus has to run a gauntlet north on La Salle street from the Board of Trade building to the Chicago river where his or her bonus brief case is waiting.  On both sides of La Street would be former clients and employees of MF Global who would be free to bring the bat, golf club , car atennna or stick of their choice.  the distance is 8 blocks.  to get the bonus, all the claimant has to do is reach the brief case with his name on it , walking or crawling.  if they don't make it , they forfeit the bonus which will be distributed to former employees and clients.  All those who have claimed bonuse have to run and must run stripped to the waist and barefoot. yeah , i am an ex MFG customer.

Tue, 03/13/2012 - 00:10 | Link to Comment taffy
taffy's picture

wow, a new warm and fuzzy just came over me, after reading this. the curtains have been flung, the light is shining in, and yet those s.o.b's still get the customer's private funds for a bonus! the smell makes me want to vomit!

 

Tue, 03/13/2012 - 00:15 | Link to Comment tradewithdave
tradewithdave's picture

The Audacity Of Lost Hope (but found bonuses) - the CFTC story

 

A Chiltonian Production

 

http://tradewithdave.com/?p=9528

Tue, 03/13/2012 - 01:59 | Link to Comment cnhedge
Tue, 03/13/2012 - 02:54 | Link to Comment suckerfishzilla
suckerfishzilla's picture

That's like throwing a little salt on the old wound there now isn't it?  Buy real metal next time morons. 

Tue, 03/13/2012 - 04:21 | Link to Comment SilverRhino
SilverRhino's picture

Damn ...

Tue, 03/13/2012 - 07:53 | Link to Comment writingsonthewall
writingsonthewall's picture

America - what the fuck are you playing at?

 

At least in Britain we went on a riot to show our disproval of the theft at the top (mimicking it at the bottom)

 

What are you all playing at?

 

You're letting the thieves win - they have already ensured the sheepeople turn on OWS by claiming it's 'Marxist'

Well if taking action to stop theft at the top is Marxist - then I shall be that.

 

If MF Global are allowed to get away with it - then the rest will follow.

It's time for ordinary Americans to put aside their religious differences and stand up and fight the thieving 'private' sector.

I don't mean smash up the local mom&pop store - I'm talking about blockading the ports which are owned by the Investment banks who parasite every piece of trade America does.

 

SORT IT OUT!

Tue, 03/13/2012 - 20:34 | Link to Comment unununium
unununium's picture

Huh?  I only stopped in here because I misspelled "Real Housewives of Atlanta" in my search bar.  I won't make that mistake again!

Tue, 03/13/2012 - 08:53 | Link to Comment Olympia
Olympia's picture

Imperialism and loansharking are perfectly identified ...identified, exactly as imperialism used to be identified with war conflicts. This is why we believe that the consequences of some “mistakes” easily reveal the “motives” of those who planned them.

In reality, there is a permanent “recycling” of the same tactics that lead to the mistake and then to disaster. The method used in the case of Greece is a version of the practice that started from the imperialistic centers to expand all over the world. Simply, in Greece, that is a “terminal”, banking illegal superprofits were produced so that loan sharks “spoil” the Greek public assets, while at the “center” of the planning banking superprofits were created so that loan sharks “spoil” the "Greeces”. Exactly the same illegal things were planned to bring profit to their loan sharking inspirators ...illegal profits.

More info about Global Debt Crisis here:

http://eamb-ydrohoos.blogspot.com/2012/01/global-debt-crisis.html

.

Do NOT follow this link or you will be banned from the site!