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

Tyler Durden's picture


We find it supremely ironic that one former Goldmanite, in this case the CFTC's Gary Gensler, takes credit (doing the people's work this time?) for allowing the failure of what is now a documented criminal enterprise, MF Global, run by another former Goldmanite, Jon Corzine, and claiming this was nothing less than an example of "Freedom To Fail". The NYT quotes Gensler: "This was an example of a financial institution having the freedom to fail,” he said in response to questioning from Senator Carl Levin, the Michigan Democrat who chairs the Permanent Subcommittee on Investigations. “I don’t think there’s any taxpayer money behind this.”" No, Gary, there is just client money behind this. Anywhere between $700 million and $1.5 billion. Money that was stolen, and had MF global been bailed out, you, the CFTC and the US Government would have been complicit in a prima facie felony. So please - no need for the pathetic pandering to the lowest common denominator that only years of Goldman tenure can hone to this level of perfection. The only question is whether the CFTC, together with that other corrupt regulator which oddly enough is not yet run by a third Goldman alum, has the "freedom to jail."

More from NYT:

The top regulator tasked with overseeing the bankrupt brokerage firm MF Global said Thursday that the search continues for more than $630 million in missing customer funds, warning that the protection of client assets is essential to doing business on Wall Street.


Gary Gensler, chairman of the Commodity Futures Trading Commission, said his agency is still investigating the firm, a powerhouse commodities brokerage run by former New Jersey governor Jon S. Corzine.


“The most troubling aspect about the MF Global situation is the shortfall of customer money at the firm. Segregation of customer funds is the core foundation of customer protection in the commodity futures and swaps markets,” he said in prepared testimony. “Segregation must be maintained at all times. Simply put, that’s every moment of every day, down to the nano second.”

And here is how efficient Gensler is at enforcing "stuff"

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. The disclosure sent bidders fleeing and the firm had no choice but to file for bankruptcy

All that is irrelevant: expect Obama to promptly make the pubic circuit claiming it is only due to his policies that MF Global was not bailed out, criminality be damned.


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Thu, 11/03/2011 - 12:35 | 1841984 TruthInSunshine
TruthInSunshine's picture

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
max2205's picture


Thu, 11/03/2011 - 13:50 | 1842344 Pladizow
Pladizow's picture

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
nope-1004's picture

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
tickhound's picture

An example of "Freedom to Decide Who Fails"

Thu, 11/03/2011 - 13:13 | 1842174 Nascent_Variable
Nascent_Variable's picture

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
TruthInSunshine's picture

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
Logans_Run's picture

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
kaiserhoff's picture

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
cowdiddly's picture

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
tarsubil's picture

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
earleflorida's picture

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 ...
Divided States of America's picture

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
Segestan's picture

So in other words .... the market is lawless. Only works when they need it to.

Thu, 11/03/2011 - 12:42 | 1842016 topcallingtroll
topcallingtroll's picture

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
SheepDog-One's picture

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
slewie the pi-rat's picture

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
kaiserhoff's picture

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
karzai_luver's picture

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
Hippocratic Oaf's picture

via Trenton

Thu, 11/03/2011 - 12:38 | 1841998 alien-IQ
alien-IQ's picture

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
LawsofPhysics's picture

One reason I now search for your avatar, nice.

Thu, 11/03/2011 - 13:08 | 1842141 Vergeltung
Vergeltung's picture

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?

Thu, 11/03/2011 - 12:45 | 1842029 LawsofPhysics
LawsofPhysics's picture

accidental death, the family has already had a burial at sea, in accordance with their religious beliefs.

Thu, 11/03/2011 - 12:59 | 1842100 Taterboy
Taterboy's picture

He's on a date with Ruth Madoff.

Thu, 11/03/2011 - 13:20 | 1842214 ljag
ljag's picture

Hanging out with Kenny boy.

Thu, 11/03/2011 - 12:43 | 1842021 Comay Mierda
Comay Mierda's picture

only a matter of time before OWS becomes OGS

Thu, 11/03/2011 - 12:43 | 1842022 jcaz
jcaz's picture

Oh no- Obama will immediately point out that he inherited this "aura of criminality" from Bush, and that any association he's had with Corzine in the past was "simply media speculation"....

Thu, 11/03/2011 - 12:43 | 1842023 SheepDog-One
SheepDog-One's picture

'Freedom to jail'....yea lets see about that.

Thu, 11/03/2011 - 12:45 | 1842034 SheepDog-One
SheepDog-One's picture

Like Capt Blackbeard pointing to another pirate ship that is sinking and proclaiming thats proof of how fair the pirate trade really is.

Thu, 11/03/2011 - 14:14 | 1842487 slewie the pi-rat
slewie the pi-rat's picture

you bad dog!

Thu, 11/03/2011 - 12:45 | 1842036 AngryGerman
AngryGerman's picture

unbelievable. these guys really got some guts. simply bluntly lying to the world. and they'll walk away with it.

expect media to hail mf global as a sign that the invisible hand of the market rules everything good.

wtf. i dont want anymore. i stop. let the world go under without me. i just gonna sit back now and hope that the greek will burn their politicians.

Thu, 11/03/2011 - 12:59 | 1842060 SheepDog-One
SheepDog-One's picture

Yea none of it really matters to me at this point, Im out. Watching and hoping to see Greek parliaments looking like funeral pyres real soon. Other than that, same old BS day after day.

Thu, 11/03/2011 - 12:46 | 1842037 Darth Sidious
Darth Sidious's picture

no taxpayer money?  where exactly does sipc money come from to give retail accounts back their stolen money?  no public money to the same extent fdic isn't public money

Thu, 11/03/2011 - 12:49 | 1842049 Godisanhftbot
Godisanhftbot's picture

 So tell me, why isn't Corswines  great personal wealth not going to be confiscated?

 Are we that stupid?


 You have to have some respect for the Libyans,  they did the right thing with the Kad.  We could use a little LibyaJustice here.


Thu, 11/03/2011 - 12:52 | 1842065 SheepDog-One
SheepDog-One's picture

Yea what 'failure'? Not for the management, theyre richer than ever. Failure for the customers who lost $1.5 billion, passed on to the taxpayer of course. GG is a corrupt little midget.

Thu, 11/03/2011 - 13:06 | 1842131 augie
augie's picture

Are we that stupid?

I think it has more to do with brainwashing than stupidity, but i sympathize with your frustration. Don't forget the Libyians buggered Gadaffi with a blade, if you beleive in an eye for an eye thats fine, but a wise man once said an eye for an eye leaves the whole world blind, and i beleive that logic should apply to everyone; Even those like Gadaffi, Diamond, Blankfien, obama... ect.

Thu, 11/03/2011 - 12:48 | 1842051 Greater Fool
Greater Fool's picture

DoJ had better be gathering evidence to bring charges against individuals at MF Global. Otherwise, confidence in the entire FCM structure is at risk, and with it the key provisions of Dodd-Frank for central clearing of derivatives.

Thu, 11/03/2011 - 12:49 | 1842053 AldoHux_IV
AldoHux_IV's picture

warning that the protection of client assets is essential to doing business on Wall Street.

By ensuring it stays with wall street in the form of golden parachutes?

Thu, 11/03/2011 - 12:50 | 1842059 LoneStarHog
LoneStarHog's picture

MF Global was ALLOWED to fail so that THOUSANDS of Silver positions would be LIQUIDATED and JP Morgan will COVER ALL OF ITS NAKED SHORT POSITIONS.

Thu, 11/03/2011 - 13:20 | 1842217 Bastiat
Bastiat's picture

So MF Global was massively long silver?

Thu, 11/03/2011 - 13:25 | 1842243 jayman21
jayman21's picture

LoneStarHog - Can you site some research or numbers to back this up?  I would love to share with the sheep the fucked up ness of this situation.

Thu, 11/03/2011 - 13:56 | 1842390 LoneStarHog
LoneStarHog's picture

Sorry, I should have posted the link...was in a rush...>

Thu, 11/03/2011 - 12:53 | 1842074 peekcrackers
peekcrackers's picture

" Freedom to steal"  not  "Freedom To Fail"

Thu, 11/03/2011 - 12:53 | 1842076 pragmatic hobo
pragmatic hobo's picture

gensler the "lotta talk and zero action"? what exactly has he done since taking over cftc?

Thu, 11/03/2011 - 12:57 | 1842091 cowdiddly
cowdiddly's picture

FREEDOM TO FAIL? Its been 2 days and Jon Corzone is not even been charged or apprehended yet. You mean freedom to STEAL. Fuck you Gensler you little worm. You have set there watching JPM and HBSC manipulate the price of silver for years and as regulator failed to lift so much as a finger until Chilton theatened to go public. You are nothing but a corrupt worm and need arrested too.

If they do not send someone down for this GET YOUR MONEY OUT OF EVERY FINANCIAL HOUSE, BROKER, BANK, INVESTMENT CO ect. YOU HAVE NO PROTECTION WHATSOEVER. They refuse to prosecute these slimeballs when they steal your money. 

Thu, 11/03/2011 - 13:03 | 1842117 SheepDog-One
SheepDog-One's picture

Who failed...certainly not Corzine GS alum! He got a $12 million dollar check! And not even a parking ticket yet. When the people of THIS country wake the hell up, I dont know, but it will certainly be far too late!  

Thu, 11/03/2011 - 12:57 | 1842094 luna_man
luna_man's picture

One and All...Repeat after me, patience is a virtue...

Keep fantasizing, on all the wonderful ways you will exact your pound of FLESH.


Tyler, will give us the cue!

Thu, 11/03/2011 - 13:03 | 1842119 LawsofPhysics
LawsofPhysics's picture

That is exactly what should be done.  Okay when do we all get to make our own collateral call and take payment in PMs?

Thu, 11/03/2011 - 12:58 | 1842097 ejhickey
ejhickey's picture

Months Prior to the MF Global mess, the CFTC was worried about increasing margin limits on prescious metals .  they have time for that but no time to monitor a firm that was stealing clients' money and taking huge risks with it?   Unbelievabe!

Thu, 11/03/2011 - 13:00 | 1842108 Loose Caboose
Loose Caboose's picture

The immediate arrest and trial of Jon Corzine should be on the LIST OF DEMANDS for #OWS.

Thu, 11/03/2011 - 13:07 | 1842139 SheepDog-One
SheepDog-One's picture

Should be, but the OWS crowd is all busy whining about their student loans and they want more money from govt....the sheeple lined right up to the trough.

Thu, 11/03/2011 - 13:09 | 1842152 jay28elle
jay28elle's picture

hehehe, good one!  not until the union bosses or the pres somehow point them in that direction.

Thu, 11/03/2011 - 13:00 | 1842109 vegas
vegas's picture

Please, somebody tell me which regulator [SEC, CFTC, NFA, FSA, etc.] has EVER been out in front of any situation where clients got hosed? Just one. There has to be one right?

Regulatory agencies are nothing more than resume factories for those who want to then move to some firm they can persuade that they have connections on the "inside" of government power. And only they know the "secrets" to getting shit done.

Yeah, right.

Well, if I want to know which midget porn site is best, I will surely call and get the best "inside" info.

What a bunch of tools.

Thu, 11/03/2011 - 13:06 | 1842132 SheepDog-One
SheepDog-One's picture


Thu, 11/03/2011 - 13:09 | 1842151 Village Smithy
Village Smithy's picture

One wonders had Mr. Gensler not been obligated due to the urgency of the situation, would he have done anything or just turned a blind eye.

Thu, 11/03/2011 - 13:10 | 1842158 hangemhigh77
hangemhigh77's picture

Freedom to fail?  More like Freedom to lie and thieve.  Let's put Corzine in Rahway and drive him there in a cop car doing 150 mph with him sitting in the front passenger seat with no seat belt on.

Thu, 11/03/2011 - 13:11 | 1842165 Wannabee
Wannabee's picture

My vote for quote of the day: So please - no need for the pathetic pandering to the lowest common denominator that only years of Goldman tenure can hone to this level of perfection.

Thu, 11/03/2011 - 13:12 | 1842173 Clowns on Acid
Clowns on Acid's picture

How come no one on the financial TV channels are mentioning the criminality of MF Financial and Corzine specifically? NOt even the FOX ?

Why is ES suddenly bid today...good earnings?

With the cookie crumbling....everyone knows that QE3 ust be coming....


Thu, 11/03/2011 - 13:16 | 1842191 apberusdisvet
apberusdisvet's picture


What happens in the mens' room of the CFTC stays in the mens' room of the CFTC.  At least that's what Blythe maintains, and she should know.

Thu, 11/03/2011 - 13:26 | 1842257 mendigo
mendigo's picture

speaking of politicization

from Bloomberg:
Microsoft Corp.(MSFT)employees rank first among Obama’s business givers

as if I needed more reason to dislike microsoft (Google is No 3)

Thu, 11/03/2011 - 17:55 | 1843320 Bicycle Repairman
Bicycle Repairman's picture

In the mid-90s all these high-tech types were libertarians.  Well, what do you know?

Thu, 11/03/2011 - 13:33 | 1842300 SilverSurfer
SilverSurfer's picture


Where in the world IS Jon Corzine?

Thu, 11/03/2011 - 17:58 | 1843335 oldman
oldman's picture

Green for Silver Surfer!

He may be with Osama, Saddam, or number of other bad guys in a penthouse in Miami/ranch in Wyoming/luxurywilderness area in South America with everything he wants shipped in to him

Where are any of these dudes---where is Jimmy Hoffa? Where are bthe lost plates for printing 'narcidollars' issued by thed CIA/DEA?

You know, I meet peopleand they tell me these stories and I just forget about them until something like this goes down and someone asks a legtimate question such as you have---I don't know Silver Surfer, I'm not a conspiracy guy, but sometimes------------well, you just never know              om

Thu, 11/03/2011 - 13:48 | 1842362 GoodieRoy
GoodieRoy's picture

Those of us who came up in this business with a pure futures background are more shocked by this than others, I think.  This is a BIG deal.  Futures accounts are clearly supposed to be segregated because of the very nature of the business.  SPAN margining is a framework, that if the banksters had to adhered to, much of the financial crisis would have been avoided.  Doing business with the Chicago exchanges was/is considered safe because of the very nature of daily netting.  You lose money, it is gone, and deposited with a winner the very day the market closes.   Same if you win, you get the money today. No holding contracts with a mark derived from a non market reflective model.  Everything has a specific price at all times.  Chicago is the anti TBTF NY east coast business model.  The fact that it only took a typical NY bankster like Corzine a year to destroy a 150 year old Clearing Member is beyond belief. 

I think that everyone at MF holding a CFTC regulated futures account will be made whole.  Probably by the CME Clearinghouse and a combination of Clearing Member firms.  Thank god those goofs didn't have more time to try to hang onto their trades, they probably would have lost it all.  That is what degenarate gamblers do when confronted with disaster.

I also hope that the way this is handled will only further boost the credibility of the futures industry business model and prove our integrity to the world.  Maybe then we can come up with a margining and netting system for all OTC products, and the banksters won't be able to sheat steal lie and imperil anymore.

Thu, 11/03/2011 - 14:08 | 1842449 oldman
oldman's picture

Maybe I will read this later on, but the headline is so precious that I just want to say that this was not about 'freedom to fail', asshole: this about criminality                         om

Thu, 11/03/2011 - 14:19 | 1842512 loveyajimbo
loveyajimbo's picture

Gensler... what a corrupt scumbag.  If you kicked either Lloyd or Jamie in the ass, you would have a great chance of hitting Gensler on the back of his empty head... the guy needs to be beaten, buggered and boxcar'd.

Thu, 11/03/2011 - 15:07 | 1842720 Bansters-in-my-...
Bansters-in-my- feces's picture

You delusional FuckTard Gary Gensler.

This is not a case of LEGAL failing.

You FuckTard.

Now wipe the Keynesian cum off you chin and go lay down,like the good dog are are for the Rothschilds of the world.

Fri, 11/04/2011 - 03:59 | 1844198 Peter K
Peter K's picture

Yes, the wing nuts don't like failure. And the answer is ..... wait for it.... more government. If we just had more gov, all this failure could be avoided.

Tue, 11/29/2011 - 19:25 | 1927927 Ron Hera
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