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Guest Post: John Corzine- An Insider Helping Out Fellow Insiders

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Submiited by James Miller of Miller's Genuine Draft

Jon Corzine -Taking Care of His Friends With Insider Connections

Few men have a resume quite like Jon Corzine.  Not only has Corzine served in the U.S. Senate and been governor of New Jersey, he has also been the CEO of Goldman Sachs and the recently imploded brokerage firm MF Global.   The insider blood filtrated through cronyism and the endless squandering of the public dime flows heavily through his veins.

When MF Global went belly up back in the fall, Corzine was finally revealed for the inept, overly connected bureaucrat he really is.  Corruption seemingly follows the former Senator, Governor, and banker like shadows on a sunny day.  Earlier this week, New Jersey was declared the least corruptible state in the union much to the surprise of, well, everyone.  But as the great Jonathan Weil pointed out, the methodology in the study conducted by the Center for Public Integrity was horribly flawed.  New Jersey has historically been defined with corruption:

…this is a state where in 2009 three mayors, two assemblymen and five rabbis were among 44 charged in a single money-laundering and bribery sting by the Federal Bureau of Investigation. One of those mayors, Peter Cammarano, was from Hoboken, where I live. He was sentenced to 24 months in prison. Five years before his arrest, another former Hoboken mayor, Anthony Russo, pleaded guilty to corruption charges. His son now sits on the city council.

Corzine was of course acquainted with one of the mayors listed and a member of his own cabinet faced investigation by the FBI during the same time period.  And that was only the man’s tenure as Governor.  Anyone who spends their time horse-trading in Congress is instantly guilty of corruption by definition.  Corzine was especially so as he coauthored the Sarbanes-Oxley financial regulatory bill which heaped another expense on start up businesses to the benefit of already established and politically favored firms.

Corzine’s political career was launched after his term heading the financial vampire squid known as Goldman Sachs which has its tentacles within practically every important or relevant governing authority around the globe.  During his time at GS, he served on a presidential commission for Bill Clinton and a committee in the U.S. Treasury.  In short, before his time heading MF Global, Corzine was an expert paper pusher whose connections in the political establishment were deeply rooted.  That’s why he made the perfect candidate for a multinational investment firm on the up and up.

Not too long after Corzine went to MF Global, he visited the New York branch of the Federal Reserve in an attempt to expedite the process by which MF could received the coveted “primary dealer” privilege.  This primary dealer position gave MF the ability to be one of the first financial institutions the NY Fed would purchase government securities and bonds from when the central bank wished to expand the monetary base.  It is the ultimate position any banking insider looking to game the system seeks.  Though an official from the NY Fed denies any special treatment was given to Corzine (as if they would own up to it in public anyway), as the Wall Street Journal explains, “the New York Fed doesn’t publicly discuss” decisions of granting primary dealership status, “but a source with knowledge of the process says that it sometimes takes several years for a firm to gain acceptance.”

And yet we are to believe that Corzine’s numerous connections didn’t help fast track this process?

It should be obvious by now how heavy a user Mr. Corzine is of the revolving door between Wall Street and Washington.  Insiders are able to make a fortune by occupying public office and subsequently being offered a prominent position in an industry seeking to exploit regulation by hiring those who know it best.  This often includes the authors of the regulations themselves.  Corzine is not only an experienced alumni of this group but a practical valedictorian.

For someone so experienced in this utterly corrupt dynamic, it came as a surprise to see MF Global crash and burn as the European debt crisis escalated.  Perhaps Corzine was betting on a more monetarily aggressive European Central Bank to bailout the profligate governments of the periphery?  Whatever the case, Corzine and co. were caught red handed as the firm declared bankruptcy and $1.2 billion of money supposed to be secured in customer accounts went missing.  At the time, Corzine pathetically told the Agricultural Committee in the House of Representatives:

“I simply do not know where the money is, or why the accounts have not been reconciled to date,”

As it turns out, Corzine should have known where at least some of the funds went.  From Bloomberg:

Jon S. Corzine, MF Global Holding Ltd. (MFGLQ)’s chief executive officer, gave “direct instructions” to transfer $200 million from a customer fund account to meet an overdraft in a brokerage account with JPMorgan Chase & Co. (JPM), according to a memo written by congressional investigators.
Edith O’Brien, a treasurer for the firm, said in an e-mail quoted in the memo that the transfer was “Per JC’s direct instructions,” according to a copy of the memo obtained by Bloomberg News yesterday. The e-mail, dated Oct. 28, was sent three days before the company collapsed, the memo says. The memo does not indicate whether that phrase was the full text of the e-mail or an excerpt.

In what will surely be labeled an unfortunate coincidence, a fellow NY Fed primary dealer was given a helping hand as the firm knowingly imploded.

Talk about friends with benefits.

Corzine may be subpoenaed by Congress and used as a punching bag by Republicans looking to score political points but the dominant culture of increasing centralization and cronyism which is an ever-present aspect of state will carry on unchallenged.  Corzine will simply be the scapegoat of the political class looking to give off the mirage of integrity within government.  God forbid politicians not “do something” in the wake of a controversy they themselves are responsible for.

As economist Freidrich Hayek taught, power centers attract and breed unscrupulous behavior.  There is no institution more powerful than that of the state apparatus which feeds off the continual usurpation of authority and acts as the sole monopolizer of force over a given geographical area.  Governments don’t minimize class divisions, they are the originator of stagnant social mobility.  The Jon Corzines of the world feel entitled to their positions of prominence and will do anything to secure them as they blatantly skirt the law and protect their friends by any means necessary.  The normal rules imposed on society don’t apply to them for they are the rule makers.  The existence of central banks not bound by restraints on money creation and the backing of fractional reserve banking with taxpayer funds are simply extensions of the unceasing jackboot pressed down upon economic and social freedom.  This is why Ben Bernanke’s Fed fought tooth and nail to not disclose the amount of money “lent” out to big banks during the financial crisis.

If there is one good thing to come about from the whole MF Global affair, besides putting a stake in the heart of Corzine’s reputation, it was the fact that the firm wasn’t bailed out by by the Treasury or Fed.  The powers that be decided to let MF go as a possible sign that more of the public is becoming aware of the farce of a market the financial industry is which acts as a middleman between the government and the printing press.  Market forces don’t decide winners and losers in today’s banking industry; the members of the elite class do.

 


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Mon, 03/26/2012 - 16:31 | Link to Comment GeneMarchbanks
GeneMarchbanks's picture

'What are friends for anyways?'

Mon, 03/26/2012 - 17:04 | Link to Comment Colombian Gringo
Colombian Gringo's picture

If we had honest courts and a impartial legal system, Corzine would be making new friends in the prison showers. Instead, it is former MF account holders who are getting it good and hard.  No Hope, No Change unless you are Obot insider.

Mon, 03/26/2012 - 17:15 | Link to Comment AnAnonymouses
AnAnonymouses's picture

Ah-so, US citizenses helping US citizenses to cheat US citizenses and the rest of the world.  This is not a surprise.

________________________________________________________________________

Excuse me while I laugh.

Mon, 03/26/2012 - 17:39 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

+ 1  LOL...

US citizenism blobbing up again!

Mon, 03/26/2012 - 22:00 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Brobbing up is eternar nature of US citizenism.

The US citizenism is not the sorution, the US citizenism is the probrem.

Obvious facts are not obvious as rong as US citizens admit they are.

Serf furfirring prophecy actuarry.

 

Mon, 03/26/2012 - 23:17 | Link to Comment Boxed Merlot
Boxed Merlot's picture

Please, don't tell me J. Corzine's son has freckles on his p_n_s.

Tue, 03/27/2012 - 06:19 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

FREE JON CORZINE!!!!

 

Oh wait......he is.

 

 

Tue, 03/27/2012 - 06:48 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

.

Please, don't tell me J. Corzine's son has freckles on his p_n_s.

Is genius!

 

Mon, 03/26/2012 - 21:20 | Link to Comment Boxed Merlot
Boxed Merlot's picture

AnAnonymouses.

rich.

No, thank you for the laugh.

Mon, 03/26/2012 - 21:32 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

As long as you understand the result would be no different if a Rethuglican were in the White House, I agree with you.

Mon, 03/26/2012 - 17:18 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

"New Jersey was declared the least corruptible state in the union..." is technically accurate since if there is nothing left to corrupt then your state is a shoe in.

Mon, 03/26/2012 - 16:37 | Link to Comment rehypothecator
rehypothecator's picture

Of course NJ is the least corruptible state.  How could it possibly get any more than it already is? 

Mon, 03/26/2012 - 16:39 | Link to Comment tbone654
tbone654's picture

that study was commissioned by NJ no doubt...

Mon, 03/26/2012 - 23:21 | Link to Comment StychoKiller
StychoKiller's picture

Now, I feel so used (and cheap!) :>(  (LOL!)

Mon, 03/26/2012 - 16:41 | Link to Comment tbone654
tbone654's picture

Governments don’t minimize class divisions, they are the originator of stagnant social mobility.

 

well put...  stealing that...  everyone's doing it...

Mon, 03/26/2012 - 16:39 | Link to Comment rehypothecator
rehypothecator's picture

N.B. 1.2 billion of missing customer money only includes the 4(d) funds.  Adding 30.7 funds brings the total theft to 1.6 billion - more than MF Global was itself worth at the time.

Mon, 03/26/2012 - 16:41 | Link to Comment digalert
digalert's picture

This MF'you to the USA is a test run to see what the banksters can get away with. Well...looks like they're getting away with it. Do you have your secured funds protected by one of these criminal bankster institutions? They're going to take everything you have!!!

Mon, 03/26/2012 - 16:43 | Link to Comment Dingleberry
Dingleberry's picture

"Least corruptible"??  What the fuck!?

Mon, 03/26/2012 - 16:45 | Link to Comment tony bonn
tony bonn's picture

there are some interesting insights here, but mf global was a financial hit job and is NOT explained by incompetence....it was a calculated bush crime syndicate job through and through.....the crooked louis freeh isn't conservator for nothing....

corzine walks free as a jay bird...

you do NOT become ceo of gs as an incompetent boob...go peddle this bullshit somewhere else.

Mon, 03/26/2012 - 16:45 | Link to Comment tbone654
tbone654's picture

but I'll bet he's nervous now...  unless...  nah!  he's nervous...

Mon, 03/26/2012 - 17:21 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

6 months house arrest tops. The 'house' will be a 657000 sq ft mansion compound on 30 acres though with sport courts, indoor pools, hookers & blow, hunting grounds, race track, etc. A paid vacation most of us can only dream about will be his 'time served'.

Mon, 03/26/2012 - 17:47 | Link to Comment Rainman
Rainman's picture

.....this is known as being 'Pablo Escobared', no?

Mon, 03/26/2012 - 19:29 | Link to Comment CIABS
CIABS's picture

tony bonn, et al:

Do you see the Bush family continuing strong?  Any chance the power structure has shifted in the last few years and eclipsed them somewhat?

I agree that MF was a hit job.  I think part of the motive was to remove Corzine from the running for Treasury secretary, which he might have seen as a launching pad for a Presidential run in 2016.

Mon, 03/26/2012 - 23:22 | Link to Comment StychoKiller
StychoKiller's picture

Nonsense!  JPM needed all the Ag in MF Customer's accounts (now, they gots it!)

Mon, 03/26/2012 - 16:46 | Link to Comment Theta_Burn
Theta_Burn's picture

Welcome to my backyard folks..please recyclables go in the blue barrel..

AH yes the FBI ever so slightly leaned on this idiot http://forward.com/articles/110612/solomon-dwek-the-rabbis-son-at-the-center-of-the/

The chubby one...                                              http://www.nj.com/news/index.ssf/2011/06/allowance_for_informant_in_nj.html

These guys needed to be arrested, just for being so stupid...

 

Hey Chicaago you seein this??

Mon, 03/26/2012 - 16:47 | Link to Comment SillySalesmanQu...
SillySalesmanQuestion's picture

Jail Jon , seize his assets and immediately make full restitution to MF"s clients. Put him in general population prison and let him really feel how it is to get assfucked like his ex-clients.

Mon, 03/26/2012 - 16:48 | Link to Comment Bansters-in-my-...
Bansters-in-my- feces's picture

Jon.....

Jesus loves you,if you give the money back.

Mon, 03/26/2012 - 17:04 | Link to Comment fnordfnordfnord
fnordfnordfnord's picture

See, the problem here is one of a quote having been mistakenly attributed to Jon Corzine.

“Per JC’s direct instructions,”

If we simply remind ourselves however, that Wall Street firms are "doing God's work"; then we can quickly arrive at the truth of the matter. It was not Jon Corzine, but rather Jesus Christ himself who gave the order to move those funds. Given the infallibility of Christ; there can of course, be no wrongdoing. Anyone who says otherwise is the devil.

Mon, 03/26/2012 - 17:22 | Link to Comment 12ToothAssassin
12ToothAssassin's picture

Thats what I was thinking!

Mon, 03/26/2012 - 20:12 | Link to Comment Moe Howard
Moe Howard's picture

Jesus is just another long dead joo to these tribe members. I don't think they would want to be counted as members of Jews for Jesus unless you are talking about their gardener.

Mon, 03/26/2012 - 17:07 | Link to Comment Miss Expectations
Miss Expectations's picture

If there is one good thing to come about from the whole MF Global affair, besides putting a stake in the heart of Corzine’s reputation, it was the fact that the firm wasn’t bailed out by by the Treasury or Fed.

How would you know?

"Now let's just suppose that the Federal Reserve was feeling real charitable toward all these institutions that made "bad bets" with their customer's and creditor's money, not their own. Maybe they helped them out by taking all MF Global's bad assets off their balance sheet as collateral for a Federal Reserve loan in the exact principal amount of their underlying liabilities at the federal funds rate of 0.5%. MF Global would use this loan to buy U.S. Treasury Securities with a yield of 3.0%."

http://www.fredsauermatrix.com/84-The-MF-Global-Collapse-Explained-And-W...

Mon, 03/26/2012 - 21:37 | Link to Comment Ned Zeppelin
Ned Zeppelin's picture

And don't forget the step where they take those same Treasuries and use them as collateral for another 0.5% loan, and buy another batch of treasuries, and then . . . . .Ad infinitem.

Mon, 03/26/2012 - 17:18 | Link to Comment newworldorder
newworldorder's picture

You do know of course that other than those that depend on "functioning commodity markets" like farmers and producers, most Americans could care less about what happened with MF Global. They dont know and frankly, they dont want to know since it does not appear to impact them directly in their daily living activities.

Mon, 03/26/2012 - 17:42 | Link to Comment spanish inquisition
spanish inquisition's picture

I smell Medal of Freedom for Corzine....

Mon, 03/26/2012 - 18:09 | Link to Comment tomfool
tomfool's picture

My money is on a Presidential pardon.

Mon, 03/26/2012 - 18:12 | Link to Comment Gringo Viejo
Gringo Viejo's picture

Off Topic: I'm old, I'm tired, I'm pissed. This thing in Florida. I'm tired beyond measure of white apologists for the savage atrocities of the African race. I've watched this shit for 50 years as the American political class has pandered to this inferior culture out of fear. Want a race war? Bring it on!

BRING THIS SHIT TO A HEAD! They will Never assimilate, they will always remain a race apart. FUCK THEM!

Mon, 03/26/2012 - 18:15 | Link to Comment Gringo Viejo
Gringo Viejo's picture

African American Logic: The same as all other races....less reason and accountability. FUCK THEM!

Mon, 03/26/2012 - 18:36 | Link to Comment Smokey1
Mon, 03/26/2012 - 18:51 | Link to Comment Seasmoke
Seasmoke's picture

then you must really pissed that now they are calling a Mexican American that shoot a black person....WHITE !!!!

Mon, 03/26/2012 - 20:14 | Link to Comment Moe Howard
Moe Howard's picture

He was one of those dam WHITE mexican latino chicanos.

Mon, 03/26/2012 - 18:35 | Link to Comment Zero Govt
Zero Govt's picture

Nobody spends (pisses away) other peoples money like a politician, a banker or Goldman Sucks CEO

...fuck, this guy has the entire CV neccessary to destroy wealth

Mon, 03/26/2012 - 18:36 | Link to Comment Dr. Crime
Dr. Crime's picture

Have we forgotten Kenneth Lay's closed casket burial at age 64 after his being found guilty on May 25, 2006 and his heart attack in July, three months prior to his scheduled sentencing in October? Pleezze. The only thing JC has against him is a rather distinctive and will publicized face. 

Tue, 03/27/2012 - 02:33 | Link to Comment jmk
jmk's picture

Still alive--ran into him in the waiting room at the Jo-Berg airport!

Mon, 03/26/2012 - 18:47 | Link to Comment Seasmoke
Seasmoke's picture

He is more Guilty of all that he did at Goldman and MFG than anything he did here as Senator and Governor........He is in his element on Wall Street and like a fish out of water in politics

Mon, 03/26/2012 - 19:00 | Link to Comment Seasmoke
Seasmoke's picture

you know what no one ever mentions, is how stupid these Democrats were who got snagged by a fat Jew, whose picture was in all the state papers only 6 months earlier for kiting/bouncing/stealing a $25 MILLION CHECK ........i promise you if he sat across from me in a diner, i would have known that a sting was on, in less than 10 seconds

Mon, 03/26/2012 - 19:04 | Link to Comment Sathington Willougby
Sathington Willougby's picture

 

Jon Corzine, the most interesting thief in the world:

http://www.quickmeme.com/meme/3ohg1g/

Take it easy on him Congress, and remember the carny code, he's one of you.

Mon, 03/26/2012 - 19:41 | Link to Comment Richard Whitney
Richard Whitney's picture

Wait a second! Are we talking about the same Jon Corzine? The one who worked at Goldman, had LTCM as a client, wormed into LTCM to purloin their tricks (thus boning them), brought the tricks to his employer which then caused big losses at said employer (thus boning them), then got forced from Goldman? That Jon Corzine? The Jon Corzine who then became Govenor of New Jersey and completely boned the state finances, during which time he had an affair (=boning) with the married president of a union (thereby metaphorically boning his wife), that Jon Corzine? A guy who could screw his customer, his firm, the state he was sworn to protect, his own marriage and someone else's wife? THAT Jon Corzine? And now you are trying to tell me that once he got control of a large firm that he stole customer money? I just can't believe that. You must be talking about another Jon Corzine.

Mon, 03/26/2012 - 20:17 | Link to Comment Moe Howard
Moe Howard's picture

I think it is some other Jon Corzine. Is your Corzine bald, and kind of stupid looking?

Mon, 03/26/2012 - 20:08 | Link to Comment Son of Loki
Son of Loki's picture

"Corzine, Poster Boy of Wall Street Business Model"

MBA Schools will be proud of his accomplishments.

Tue, 03/27/2012 - 01:17 | Link to Comment blindman
blindman's picture

http://jessescrossroadscafe.blogspot.com/2012/03/barofsky-mf-global-stil...
Barofsky: MF Global Still Looks Like a Fraud and Tavakoli: Oligarchy and the New Robber Barons
.

Tue, 03/27/2012 - 04:32 | Link to Comment Clashfan
Clashfan's picture

I read some of that story on state corruption, too, and one reason why NJ is listed at the top is because so many people (supposedly) are getting caught, tried, and convicted there, meaning at least prosecution is ocurring. But whatever. This whole thing looks like yet another in an amazingly ever-intensifying series of massive scams.

It all looks like "American citizenism blobbing up" to me. Looks like a bunch of "Car Jamming."

 

http://www.youtube.com/watch?v=YQZUDw8IP6k

 

http://www.sing365.com/music/lyric.nsf/Car-Jamming-lyrics-The-Clash/391A...

Tue, 03/27/2012 - 06:34 | Link to Comment Venerability
Venerability's picture

At least one good thing has come out of the Corzine Fiasco: If it had not happened, Hillary Clinton, Silver Short Extraordinaire, would have been handed the World Bank post.

And on the anniversary - 31st, is it? - of the Hunt Brothers' failure to corner the Silver market, the Good Guys might just be on the verge of doing it.

Thu, 03/29/2012 - 02:24 | Link to Comment MeelionDollerBogus
MeelionDollerBogus's picture

you think you can corner the silver market in the face of AMD, Intel, Sony, Nintendo & Apple? Really?

Last time I checked their biggest profit margin on silver is to get the smallest amount into each item at the lowest price, not the highest, because the product itself retails for many more times the cost of the material inputs.

They have a vested interest in paying the low price, not holding out for a bigger price. To the extent that any of us use products marked up so much that use silver, instead of personally making our own & paying the lower cost of silver to do so, we also perpetuate this market condition.

Tue, 03/27/2012 - 07:46 | Link to Comment the not so migh...
the not so mighty maximiza's picture

We should just shoot him in the head in public square INGSOC style.

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