Here Comes The Politicization Of MF Global: Former Goldmanite Gensler Says MF Failure Example Of "Freedom To Fail"

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Thu, 11/03/2011 - 12:35 | 1841984 TruthInSunshine
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If MF Global had owed Goldman & JPM money on counterparty derivative bets, you can sure as hell bet that MF Global would have been bailed out a la AIG style (i.e. 180% on the dollar).

Thu, 11/03/2011 - 12:45 | 1842031 bdc63
bdc63's picture

yep.  this might even be a ploy to get the average joe to BEG for bank bailouts in the future (since OBVIOUSLY the bailout can now be seen as benefitting Main St as much as Wall St).

they are such scum I put NOTHING past them


Thu, 11/03/2011 - 13:06 | 1842133 max2205
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Thu, 11/03/2011 - 13:50 | 1842344 Pladizow
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This piece of shit says the type of things you would expect from some one who looks like:

Schmiegal + Crack Head + Aids/Cancer Patient + Crypt Kepper + Rat + Skeletor = Gary Gensler!

Thu, 11/03/2011 - 12:47 | 1842039 nope-1004
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Banks, brokers, and financial "innovators" can be lumped into one class:  Crooks.

White-collar-criminality is the new norm.  Corzine needs to go to prison.  Gensler needs an ass woopin'.


Thu, 11/03/2011 - 13:09 | 1842149 tickhound
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An example of "Freedom to Decide Who Fails"

Thu, 11/03/2011 - 13:13 | 1842174 Nascent_Variable
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Exactly.  White collar crime also presents a unique opportunity for one group - OWS.

This is the point that should be their rallying cry.  Everybody can agree that criminals on Wall Street should go to jail.  Focus on that, and the movement could really build momentum.

Plus, if they start by demanding Corzine be prosecuted, they can distance themselves from Obama and the professional left and establish themselves as a movement of the people, independent of party bickering.

Thu, 11/03/2011 - 13:39 | 1842330 Pitchman
Pitchman's picture

So right you are. But what of the FED PONZI?


Can you say; Counter Party Risk?  See how money, created out of thin air has exploded the worlds financial sector and, it can disappear as if it never existed: Evaporation of Wealth on a Vast Scale: How $Millions - Trillions Can Disappear



When it comes to financial terrorism, waged against the people, the President has abdicated his Constitutional Oath and that is an act of Treason.

See: HOUSING: To Solve The Problem You Have To Force Very Large Banks To Recognize Loses


THE FED’S DEBT SLAVERY ECONOMIC MODEL is the genesis of funding for the elite money power.  Such power concentrated in the hands of so few is the most pernicious corrupting force, for which all others follow.



- Inflection Point

Thu, 11/03/2011 - 14:42 | 1842545 TruthInSunshine
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It does bear repeating.

The 7 easy steps to controlling the world without doing any physical, mental or any other kind of work (let's call it, oh, I don't know - The Red Shield Method):

1) Buy off/bribe/blackmail/extort/destroy any lawmaker/politician/military officer who poses a risk of thwarting your plans. *Very important first step.

2)  Create fiat using nothing more than an computer/ledger entry, backed by nothing of inherent value, that has legal recognition, and in fact, is a monopoly currency with no legally recognized alternatives.

3)  Circulate such fiat via loaning it out, charging interest upon it.

4) Successfully get nations (war is a fantastic motivator to borrow), business entities and individuals (food is a great motivator) to borrow said worthless fiat that was conjured from thin air, and pay interest, pledging their real, inherently valuable assets in exchange for said worthless fiat (i.e. meaning that their real, inherently valuable assets can be taken if the conditions that make it impossible for them to repay the worthless fiat are [intentionally] induced).

5) Set the rate of interest payable on the loans of fiat that was conjured from thin air, solely at their discretion.

6) Supply more of such fiat, or withdraw fiat, to/from the system, at their discretion, bringing about inflation or deflation.

7) During times of large scale loan defaults, on the repayment of the fiat that they conjured from thin air, backed by nothing of inherent value, seize the most valuable assets that exist on the planet, many of which mankind depends on for its very survival.

Thu, 11/03/2011 - 12:46 | 1842040 Logans_Run
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Actually, I am wondering if this wasn't a "collateral squeeze" by GS or JPM. "Separate accounts be damned, this is a collateral call, pay up asshole."

Thu, 11/03/2011 - 12:56 | 1842082 kaiserhoff
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Smells like it, doesn't it?  There are no exchanges for this shit, and no solvent bankers left who can actually parse these trades, so where did the "margin" call come from?

Thu, 11/03/2011 - 13:11 | 1842162 Mr. Poon
Mr. Poon's picture

Umm, MFG does in fact owe JPM money, and a lot of it, on an unsecured line of credit.  Did you even read the bankruptcy filing?

And to Tyler's original article, the CFTC and the SEC do not have the "freedom to jail", as they are only able to assess civil penalties; all criminal charges have to be brought by the DOJ, by law.  Which, typically, involves extensive investigatory work, followed by an indictment, and then a trial, typically by jury, etc., because, you know, of all the Bill of Rights innocent-until-proven-guilty stuff.

Honestly, all the rhetoric around here would be a lot more compelling if there was a demonstration of even the slightest familiarity with the workings of the law.

Thu, 11/03/2011 - 13:27 | 1842254 cowdiddly
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Sorry Bud you can be indicted and arrested immediately at a crime scene. The news should have broke by Corzine being lead away in handcuffs. Now get back to CNBC where you belong.

Thu, 11/03/2011 - 13:28 | 1842263 tarsubil
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That's true. JPM is owed the most at 1.2 bn. The question then is how much toxic Euro bond crap did they buy up from the big players? How do the two compare?

Call me a cynic but I'm doubtful that Corzine ends up anywhere but on the beach looking good, feeling good.

Thu, 11/03/2011 - 13:11 | 1842166 tarsubil
Thu, 11/03/2011 - 14:51 | 1842654 The Big Ching-aso
The Big Ching-aso's picture

"Freedom to Bail.   Freedom to Fuck Up.  Freedom to Bonus."

Freedom's just another word for no one left to accuse.

Thu, 11/03/2011 - 12:35 | 1841985 Irish66
Irish66's picture

just trash

Thu, 11/03/2011 - 12:36 | 1841990 Tsar Pointless
Tsar Pointless's picture

"Life, liberty, and the pursuit of failure." The new American slogan.

BTW, upon hearing this news, the Average American...oh, who am I kidding here, right?

The Average American has been rendered thoughtless by years of Kardashian and Idol overload.

The continued fascist takeover of the world may proceed accordingly.

Thu, 11/03/2011 - 13:48 | 1842364 earleflorida
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when your working three part time jobs, seven days a week at the employers scheduled discretion, and your partner juggling between getting the kids off to school, and/or back home to be fed -  doesn't give one much time to follow the news,... especially when a roof over your head and food on the table are at maximum survival mode today

Thu, 11/03/2011 - 12:39 | 1841991 Divided States ...
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And to all the Goldmanites still employed at God's Shrine, its called the 'Freedom to receive bail'

Thu, 11/03/2011 - 12:39 | 1841994 DormRoom
DormRoom's picture

you have to apply the 'Madoff rule' to situations like this.  You have to steal tens of billions to be jailed.  Look @ Mozilla.. dude's still well tanned and free.


So if you're going to risk.  risk tens of billions.  That's the lesson learned by big money.



Thu, 11/03/2011 - 12:37 | 1841995 Segestan
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So in other words .... the market is lawless. Only works when they need it to.

Thu, 11/03/2011 - 12:42 | 1842016 topcallingtroll
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It is just too hard to trace down all the money and gather evidence against the guilty parties. Give CFTC a break. They arent up to the task.

Thu, 11/03/2011 - 12:55 | 1842086 SheepDog-One
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Their federal regulator watchdog jobs are just too HARD to actually perform! But theyll keep the lavish pay, 'above the law' status all the same since their jobs are so 'important' and all.

Thu, 11/03/2011 - 14:05 | 1842432 slewie the pi-rat
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gensler is a bankster;  some say a "rothschild" cabal agent

quite the dog & pony show he's been staging for the last few years

way to bich-slap him, tyler!!! 


Thu, 11/03/2011 - 12:57 | 1842095 kaiserhoff
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Then they should send their fat paychecks and bennies to me.

Thu, 11/03/2011 - 13:19 | 1842213 Segestan
Segestan's picture

I get that.. but if they need a break than what does that mean? are they not up to the task, is the task undoable .. what? They have a mandate to protect the public interest what break do they need.

Thu, 11/03/2011 - 13:24 | 1842238 karzai_luver
karzai_luver's picture

They don't need a break, when you know that YOU are going back to the gvt backstopped "private" sector you don't burn those bridges.

As long as you rotate the same scum in and out they will always find it too tough a job.

They are stacking chips to use on the outside.

simple and in your face.


Thu, 11/03/2011 - 13:38 | 1842325 Segestan
Segestan's picture

I tend to agree. What profession gets a break? None that is professional.

Thu, 11/03/2011 - 13:20 | 1842163 karzai_luver
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Gensler should be IN JAIL , the scum.

Do somethng you idiot twat.

We know there is FREEDOM TO FAIL, you and the other clueless shills demonstrate that every day.

What a clown show.

Thu, 11/03/2011 - 12:38 | 1841996 Mad Max
Mad Max's picture

Hell is far too good for this kind of person.

I hereby sentence him to New Jersey.  Camden, New Jersey.

Thu, 11/03/2011 - 13:07 | 1842140 Hippocratic Oaf
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via Trenton

Thu, 11/03/2011 - 12:38 | 1841998 alien-IQ
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there seems to be no limit to the spin these soulless motherfuckers will sink to in order to preserve their own kind.

fuck the pitchforks, break out the guillotine.

Thu, 11/03/2011 - 13:00 | 1842110 TheGameIsRigged
TheGameIsRigged's picture

Agreed - to watch the pom pom wavers at CNBC makes me physically ill.

They are ATTACKING Sean Egan of Egan Jones for their downgrade.  Are you f'ing serious?  THEY ARE DOING THEIR JOB you dumb f'ers!!


If people were going to jail for this stuff - it would stop happening - simple as that.

Thu, 11/03/2011 - 12:44 | 1841999 fuu
fuu's picture

Waterboarding all around!

"Mr. Gensler first spotted a potential shortfall late last week, personally calling MF Global’s attorney to alert the firm. But it was not until around 2 a.m. Monday morning that the firm fully recognized the magnitude of the missing money."

Thu, 11/03/2011 - 12:51 | 1842064 Careless Whisper
Careless Whisper's picture

I'm seeing so many stories about the 2 a.m. discovery of the "missing money" (aka the stolen money) that I'm starting to think that it was standard operating procedure to comingle client money with frim money, and all these stories are an intentional plant; just my opinion.


Thu, 11/03/2011 - 13:03 | 1842121 fuu
fuu's picture

It is just about the only way these firms have ANY money.

"I'm starting to think that it was standard operating procedure to comingle client money with frim money"

Thu, 11/03/2011 - 12:40 | 1842003 bania
bania's picture

I think Vinny McCrudden put it best...

"...and that fucking corrupt fucking midget [G.G.]"

Thu, 11/03/2011 - 12:40 | 1842005 AcidRastaHead
AcidRastaHead's picture

So who's freedom becomes trampled in the TBTFs?  Rhetorical.

Thu, 11/03/2011 - 12:40 | 1842008 HedgeAccordingly
HedgeAccordingly's picture

HOT chicks... screw corzine -

Thu, 11/03/2011 - 12:44 | 1842025 LawsofPhysics
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One reason I now search for your avatar, nice.

Thu, 11/03/2011 - 13:08 | 1842141 Vergeltung
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very nice, full-hipped woman. +100

Thu, 11/03/2011 - 21:41 | 1843720 Blano
Blano's picture

Wow.  Thank you.

Thu, 11/03/2011 - 12:41 | 1842009 Biggvs
Biggvs's picture

expect Obama to promptly make the pubic circuit

Say what???

Thu, 11/03/2011 - 12:41 | 1842011 azzhatter
azzhatter's picture

I would love to punch Gensler in the dick

Thu, 11/03/2011 - 12:58 | 1842098 SRV - ES339
SRV - ES339's picture

... that would be anywhere north of the shoulder

Thu, 11/03/2011 - 12:42 | 1842013 Seasmoke
Seasmoke's picture

the Goldman cockroaches are everywhere.......EXTERMINATE !

Thu, 11/03/2011 - 12:42 | 1842015 LawsofPhysics
LawsofPhysics's picture

This fucknut misses the point.  The freedom to fail is obvious everywhere, it is the having to "suffer the consequences of the law and your actions" part that isn't working numbnuts.  Get the god damn guilotines out already.

Crash the fucking system already so we can find out exactly what the value of everyone's labor is. 

Thu, 11/03/2011 - 13:05 | 1842017 Josh Randall
Josh Randall's picture

Isn't Gensler the corrupt POS that allows PM manipulation ? Like he is a beacon of Truth or something

Thu, 11/03/2011 - 12:43 | 1842018 Big Corked Boots
Big Corked Boots's picture

Does anyone know where Corzine is? Has anyone seen him? Has that self-important bastard left the country or is he going to allow the authorities to arrest him?

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