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Must Read: Presenting The MF Global Black Box: A Minute By Minute Breakdown Of The Doomed Broker's Last Week On Earth

Tyler Durden's picture


In order to get to the bottom of every collapse (or death), a forensic analysis of the last minutes of any transition from life to death has to be perormed. So far, we have only had broad strokes of the key events in the last days of MF Global as obviously many of them will implicate the management team in gross criminal behavior. Until now, when courtesy of the CME we have received a full breakdown of every key events in the chronology of MF Global's last days on earth, starting with October 24, and the rating agency downgrade of the futures broker (the same catalyst incidentally that started the AIG death spiral waterfall... and yet clueless pundits will tell you the ratings are totally irrelevant), and ending with the firm's filing for bankruptcy protection. Anyone who has any interest in the MF Global collapse, which incidentally should be anyone who has capital in third party possession and thus has counterparty risk, should read this narrative from first to last bullet.

October 24, 2011

  • Mike Procajlo ("Procajlo") speaks with Mike Bolan ("Bolan"), MF Global, Inc.'s ("MFGI") Assistant Controller. Bolan gives Procajlo a heads-up that a downgrade is forthcoming and that the earnings call for MF Global Holdings, Ltd. ("MFGH"), scheduled for Thursday, which is expected to report losses, is being moved up to Tuesday.
  • Moody's downgrades MFGH and MFGI.

October 25, 2011

  • Procajlo speaks with Bolan via phone; Bolan confirms there has not been a customer run on the bank since the downgrade news.
  • CME senior management, including Kim Taylor ("Taylor"), Terry Duffy ("Duffy"), and Craig Donohue ("Donohue") are in Florida at the Global Financial Leadership Conference.
  • Taylor is advised by an MFGI customer of rumors circulating about problems at MF Global ("MFG" with respect to information not given as specific to a particular entity) stemming from OTC activity.
  • 11 a.m.: Taylor speaks with Laurie Ferber ("Ferber"), the General Counsel of MFGH, and Steve Monieson, another MFG employee, who tell Taylor that the rumor about problems at MFG stemming from OTC activity is not accurate. Procajlo speaks with Bolan about OTC questions.
  • 11 a.m.: Taylor, Donohue, and Duffy seek and obtain Jon Corzine's phone number. They do not recall speaking with Corzine.
  • 11:54 a.m.: Procajlo emails Grace Vogel at FINRA to see if FINRA has any additional concerns or is imposing any additional requirements in light of the downgrade news.
  • 1:30 p.m.: Taylor speaks with Ferber again, who informs Taylor that MFG does not have any large losses attributable to OTC activity.
  • 2 p.m.: CME Audit Department members, including Procajlo and Anne Bagan ("Bagan"), as well as CME Risk Department members, including Dale Michaels ("Michaels"), Amy McCormick ("McCormick") and Bryan McBlaine ("McBlaine"), speak with Bolan about MFGH's earnings release and Moody's downgrade. MFGH's net losses reported were $192M. The CME employees ask about MFGH's liquidity resources. Bolan confirms that any further downgrades will only trigger covenants related to interest rates. Bolan also confirms the firm is well-capitalized and states that MFGI has not seen customers looking to transfer.
  • 7 p.m.: At this point, CME is taking the following steps to monitor the situation:
    • (1) keeping MFGI on daily financial reporting;
    • (2) monitoring MFGI's positions, exposure, and customer transfer/segregated funds balance changes for signs of a significant loss of customer confidence;
    • (3) drafting a "good standing" press release to have ready if necessary;
    • (4) establishing a process to ensure customers looking for information get answers to their questions;
    •  (5) establishing an industry call process to ensure information flows to other affected clearing houses and regulators; and
    • (6)  considering whether other financial measures are in order, in coordination with other regulatory bodies.

October 26, 2011

  • 4 p.m.: CME arranges an industry call regarding the MFG situation.   
  • 6 p.m.: Taylor, Bagan, Tim Doar ("Doar") and possibly other CME personnel participate in a conference call with Ferber and Henri Steenkamp ("Steenkamp"), the CFO of MFGH. Ferber and Steenkamp give Taylor and Doar the sense that MFGI is actively engaged in conversations with their customers in an attempt to preserve the business.
  • 7:45 p.m.: Taylor emails Ferber regarding CME helping "to ensure a good outcome for MF and your customers. You and your clients are important to us, and the clients' continued protection is paramount."

October 27, 2011

  • MFGI and MFGH are downgraded to junk this day.
    Members of CME's Risk Department — Michaels and Suzanne Sprague ("Sprague") — as well as Scott Malcolm ("Malcolm") from CME's Audit Department — meet with MFGI in New York (planned earlier in the week) to do a risk review, the purpose of which is to talk with the firm about their liquidity and assess the situation. At the time, CME is starting to have concerns that MFGI's liquidity is drying up.
    Michaels, Sprague, and Malcolm meet with a number of individuals from MFGI, including Stephen Hood ("Hood"), MFGI's Market Risk Manager, Dennis Klejna, MFGI's Compliance Officer, the CRO Michael Stockman, and the CFO (Steenkamp). Edith O'Brien ("O'Brien"), MFGI's treasurer, may have been on the phone.
  • At the conclusion of the meeting, CME- continued to have concerns regarding MFGI's liquidity and the ability of the company to continue normal operations without a sale of all or part of the business, notwithstanding MFGI's assurances.
  • 10 a.m.: Procajlo emails Bolan, who is at MFGI in New York, for a copy of the liquidity analysis being prepared by MFGI's broker-dealer side. Bolan responds saying the analysis will be ready later that day. Procajlo never receives the analysis.
  • 1 p.m.: CME decides to send members of the Audit Department out to MFGI in Chicago. Silmar Ramirez ("Ramirez") and Jason Guch ("Guch") arrive at MFGI and request documents to tie out the Daily Statement of Segregation Requirement and Funds in Segregation for Customers Trading on U.S. Commodity Exchanges ("seg. statement") for the close of business as of 10/26. They start working on tying out the 10/26 seg. statement, which shows excess segregated funds of $116,164,132.

    In addition to tying out the 10/26 seg. statement, another purpose of their presence is to have CME people at MFGI to assist in obtaining information quickly if necessary.

    The CFTC — Melissa Hendrickson ("Hendrickson"), Lisa Marlow ("Marlow"), and Tamara Durvin (phonetic) ("Durvin") — is already present on site at MFGI when CME arrives.

    CME begins making contingency plans for transferring MFG customer accounts to other FCMs.

  • 2 p.m.: Individuals from MFGH and CME communicate via email to set up a conference call to discuss a number of items including: (1) MFGI's liquidity; (2) repo counterparties update; (3) any issues with transfers of customers to other FCMs; (4) margin calls resulting from downgrades; (5) amount of segregated assets not currently pledged to a DCO; (6) contingency plans.
  • 2:50 pm: Taylor communicates with Ananda Radhalcrishnan ("Radhakrishnan"), Director, Division of Clearing and Risk, at the CFTC regarding an FCM that has the capacity to take on some portion of MF Global's business. CME President Phupinder Gill ("Gill") also communicates with Radhakrishnan via email throughout the day.
  • 3:53 pm: Procaljo emails a letter to Christine Serwinski ("Serwinski"), the CFO of MFGI, Ferber and Bolan stating "Effective immediately, any equity withdrawals from MF Global Inc. must be approved in writing by CME Group's Audit Department."
  • 4 p.m.: CME arranges an industry call regarding the MF Global situation.
  • 5:30 p.m.: Ramirez and Guch leave MFGI for the night, having completed work on documents and information supplied by MFGI as of that time.

    Evening: Procajlo, Taylor, Doar, Gill and others participate in a call with Ferber and Steenkamp, who are in New York. Ferber and Steenkamp provide assurances that MFGI has appropriate liquidity and also that MFGI is taking steps to reduce its securities inventory (not on the FCM side).

    Additionally, CME encourages MFG to pursue a strategic solution for the company. Ferber provides comfort that MFG is aggressively pursuing a transaction.

October 28, 2011

  • 7:30 a.m.: Ramirez and Guch arrive at MFGI and continue trying to tie out the 10/26 seg. statement. They still have not received all of the documents they requested from MFGI and that they need to complete their tie out. They are also working on tying out the Daily Statement of Secured Amounts and Funds Held in Separate Accounts for Foreign Futures and Foreign Options Customers Pursuant to Commission Regulation 30.7 ("secured statement"). CME and CFTC are in communication throughout the day about MFGI's 30.7 secured computations and MFGI topping up the 30.7 secured assets.   

    The CFTC — Hendrickson, Marlow, and Durvin — is again present on site at MFGI in Chicago and appears to also be working on tying out MFGI's seg. statement.

    Morning: Duffy receives a call from Radhakrishnan and Gensler. Radhalcrishnan and Gensler tell Duffy that the CFTC has concerns about MFG and ask him about CME's thoughts with respect to MFG. Duffy tells them that he does not have the information they seek, and suggests they speak with CME Clearing House personnel. Radhakrishnan speaks with Gill later that day.

    Procajlo and senior management at CME have another call with MFGH, including Steenkamp and Ferber, who assure CME that they have drawn down all or substantially all of their line of credit — which has a limit of approximately $1.2 billion — but are not yet using the money.

    They confirm that MFGH believes finding a buyer is the best option at this point.

  • 3:54 p.m.: MFGI submits its 10/27 seg. statement showing excess segregated funds of $200,178,912.
  • 4 p.m.: CME arranges an industry call regarding the MF Global situation.
  • 6 p.m.: Ramirez and Guch leave MFGI, expecting to come back Monday and finish tying out the 10/26 seg. statement. At this time, Ramirez and Guch do not yet have all of the documents necessary to tie out the 10/26 seg. statement. Based on their review of the documents they have received, they have no reason to believe that the segregated account is out of compliance as of 10/26 close of business.
  • 8:25 p.m.: Taylor emails Radhakrishnan at the CFTC to relay information she received from Ferber. MFGI has a "very motivated buyer" and needs to obtain approvals from the SEC, F1NRA, and CFTC.

October 29, 2011

  • Procajlo is in communication with Hendrickson of the CFTC via phone about a potential sale of MFGI's FCM business.
  • 2:30 p.m.: Taylor speaks with Radhakrishnan regarding a potential asset sale of MFGI's assets. The CFTC is concerned with a transfer because of the CFTC's rules on bulk transfers, though note that they will waive the rule if an asset sale works out.
  • 3:40 p.m.: Taylor forwards to Radhalcrishnan a Bloomberg News report stating that MFGH's Board of Directors will be meeting later that day regarding options to sell the company.
  • 4:30 p.m.: Taylor speaks with Radhakrishnan, who states that the SEC told him the FSA in the UK may be starting to panic. Radhakrishnan says he is going to call the FSA to share insights into his thinking and learn FSA's thinking. Taylor and Radhakrishnan also discuss additional details regarding a potential sale.
  • 7:50 p.m.: Radhakrishnan forwards to Taylor an email chain between Ferber and Radhakrishnan regarding a meeting of MFGH's Board.
  • 11 p.m.: Interactive Brokers ("IB") is the leading candidate, looking to buy either the entire business, or possibly just the FCM.

October 30, 2011

  • 8:30 a.m.: Taylor speaks with Paul Brody ("Brody") at IB regarding details of the potential transaction.
  • 8:45 a.m.: CME is making contingency plans in case the proposed sale falls through.
  • 12:30 p.m.: Taylor receives email correspondence from Radhakrishnan indicating that the CFTC is concerned about having a  contingency plan for MFGI if the IB deal falls though.
  • 1 p.m.: Conference call between CME and IB regarding operations issues in the event the sale is completed.
  • Approx. 1 p.m. - 2 p.m..: Taylor participates in a conference call with the CFTC, SEC, and MF Global.
  • Approx. 2 p.m.: Taylor, Procajlo and others arrive at CME offices to work on matters that need to be addressed to facilitate the MFGI transaction.
  • Approx. 2 p.m.: Hendrickson, who is present at MFGI in Chicago, calls Procajlo and tells him that she has seen a draft of the 10/28 seg. statement and it shows a deficiency in the segregated funds.
  • After 2 p.m.: Ramirez and Guch are sent to MFGI's Chicago office. Malcolm is sent to MFGrs New York office.
  • 4 p.m.: CME arranges an industry call regarding the MFG situation.
  • 4:18 p.m.: Bolan responds to an email from Procajlo, in which Procajlo had indicated that Malcolm is on his way to MFGI's office in New York, by stating that MFGI has been working with Hendrickson at the CFTC and that he will update Procajlo later.

    Late afternoon or evening: Taylor briefs the CME Emergency Financial Committee concerning MFGI's status. The CME Emergency Financial Committee is composed of Donohue, Duffy, Taylor, Gill, and CME Clearing House Risk Committee Co-Chairs James Oliff and Howard Siegel.

    6 p.m.: MFGI forwards to CME a draft press release announcing deal with IB.

  • Approx. 6 p.m. and into the evening: Procajlo and Taylor engage in a series of phone calls with Ferber, Bolan and/or O'Brien.  Initially, Ferber and Bolan explain that there is an apparent deficiency, which they believe is an accounting error. At some point, MFG representatives state that they believe they found the error and it is on the liability side.

    Procajlo calls Ramirez and Ouch, who are at MFGI's offices in Chicago, to confirm that the accounting error has been identified.  Ramirez and Ouch inform Procajlo that MFGI has not found the error.

    Procajlo asks Bolan to explain what the error is in an in-person meeting with Malcolm (CME) and Jerry Nudge (CFTC), who are in MFGI's New York office.

  • 30 minutes or so later, Malcolm calls Procajlo and tells him that Bolan says the accounting error is based on a $450M mis-posting. The error Bolan described to Malcolm is not on the liability side.

    Procajlo again calls Ramirez and Guch to confirm that the accounting error has been identified. Ramirez and Guch again inform Procajlo that they are with MFGI individuals working on the reconciliation, and they are not aware of anyone having found the error.

    Taylor and others at CME have calls with O'Brien regarding the potential error.

  • Approx. 6 p.m. - 7 p.m.: O'Brien, MFGI's treasurer, calls a meeting with the CFTC, CME, and MFGI employees present at MFGI's Chicago office and confirms that MFGI has a potentially huge deficiency in the segregated account due to what MFGI states is an unidentified accounting mistake, such as a mis-booking.

    Later that evening, while at MFGI, CFTC's Marlow gives Guch and Ramirez a disc containing documents the CFTC received from MFGI supporting the 10/26 seg. statement. At this time, however, Ramirez and Guch are assisting with trying to locate the accounting error and therefore do not look at the documents to tie out the rest of the 10/26 seg. statement at this time.

  • 8:30 p.m.: Radhakrishnan talks to Gill.
  • 8:40 p.m.: Procajlo sends an email to Bagan and Debbie Kokal ("Kokal") stating that MFGI's "explanation of the $900 million  shortfall proved to be unsubstantiated."
  • 8 p.m. - 9 p.m.: Procajlo arrives at MFGI. He speaks to CFTC's Hendrickson and gets a status update.
  • Christine Serwinski arrives at MFGI.
  • 9 p.m. - 10 p.m.: Procajlo speaks with Serwinski and O'Brien, who repeat the explanation that the deficiency must be an accounting error and make statements to the effect that it is too big to be anything else.
  • 10 p.m.: Procajlo meets with Serwinski and O'Brien again and asks if MFGI has tried to locate funds MFGI can transfer into segregation first thing in the morning as a contingency in the event that they cannot locate the accounting error.
  • 10:50 p.m.: CME requests via email that "MF not add any further exposure to your house account." CME does not request MFGI to "liquidate the positions that you have in place, but that you not add to them at this point."
  • 11:30 p.m.: The CFTC leaves MFGI's Chicago offices.
  • 11:40 p.m.: Procajlo emails Bagan and Kokal, stating that he is now at MFGI's offices and the shortfall, of approximately $950 million in segregation, is still a "huge issue." No one has found the error, but the belief is still that there is an error. Serwinski is looking into coming up with additional funds to transfer into segregation as a contingency in the event that they cannot locate the accounting error.
  • Procajlo also states that he understands IB is now aware of the potential shortfall.

October 31, 2011

  • 12 a.m.: Ferber emails Taylor, stating only: "we may have it."
  • Approx. 12:30 a.m.: At this time: (1) The IB deal is ready to go — apparently including regulatory signoffs; (2) there is still a $900M apparent segregation shortfall and MFGI says it is an accounting error; (3) the transfer cannot happen until it is clear there is no segregation shortfall; (4) MFGI is starting to identify sources of funds available to top up segregation — and the latest report from MFGI is that they may have sufficient funds; (5) IB and MFGI have spoken to CME and both seem aligned on the importance of the transfer occurring promptly, and state they are open to the suggestion of having MFGI top up segregation and TB making corresponding adjustments to the deal economics.
  • Approx. 1 a.m. —2 a.m.: CME learns the deficiency is real: Serwinski and O'Brien call Procajlo into Serwinski's office and tell him there is an actual shortfall; about $700M was moved to the broker-dealer side of the business to meet liquidity issues in a series of transactions on Thursday, Friday, and possibly Wednesday. Additionally, Procajlo is told there was a loan of $175M of segregated funds to MF UK.
  • CME stops its efforts to look for the accounting error. CME understands that MFGI is attempting to find available funds and get Fedwire to open early so they can start transferring money into the segregated account.
  • 2 a.m.: Taylor emails the FSA and CFTC to let them know that IB has gone home to get some sleep, but may still be interested in the transaction.
  • 2 a.m.: Procajlo communicates via email with Thelma Diaz from the CFTC Washington D.C. office, who is on a regulatory call at the time, and discusses whether Fedwire can open early so MFGI can start transferring funds into segregation.
  • 3 a.m.: Ramirez and Guch leave MFGI for the night. Procajlo stays until 8 p.m. the following day.

    During the night, Procaljo also participated in a phone call with senior MFG employees wherein one employee indicated that Corzine knew about loans that had been made from the customer segregated accounts. CME Group has provided information about this call and related conversations, and the names of the individuals who participated, to the Department of Justice and the CFTC who are investigating these matters.

  • 4 a.m.: Taylor and Gill participate in a call with MF Global and the regulators.
  • 4:37 a.m.: Procajlo emails others at CME with a list of potential assets MFGI has identified that it could move into segregation.
  • The deal with IB to buy MFGI collapses.
  • 6:45 a.m.: Taylor emails CME senior management to inform them that the deal has collapsed, the shortfall is real, and there will likely be a bankruptcy.
  • 7:30 a.m.: Procajlo, Ramirez and Guch are on site at MFGI while MFGI attempts to make transfers of funds back into segregation. The CFTC is also present.
  • 8:30 a.m.: Taylor and Radhalcrishnan communicate via email regarding MFGI bulk transfers.
  • 9 a.m.: MFGH files for bankruptcy.
  • 10 a.m.: Taylor and Radhakrishnan communicate via email regarding the amount of shortfall.
  • 10:30 a.m.: CME's Emergency Financial Committee orders that all trading of MFGI and its customers be for liquidation only. Taylor's assistant emails a letter from Taylor to Dennis Klejna ("Klejna"), Assistant General Counsel of MFGI, stating the Committee's order. The letter further states that CME will no longer permit floor trading to be guaranteed by MF Global, and that CME will process account transfers at the Friday settlement price but that customers will need to re-margin transferred positions.

    Moody's further downgrades MFGI.

    S&P and Fitch downgrade MFGH to default following MFGH's filing for bankruptcy protection.

  • 11 a.m.: A SEPA proceeding is filed for the liquidation of MFGI and a SIPC Trustee is appointed.
  • 12:15 p.m.: CME's Emergency Financial Committee orders that MFGI liquidate its house proprietary positions. Taylor's assistant  subsequently emails a letter to this effect to Klejna and Serwinski. The Committee also authorizes CME to liquidate securities held as house and customer collateral under the control of the Clearing House to cash.

    Throughout the day, Ramirez and CME staff— Guch, Jared Jarvis ("Jarvis"), Procajlo, and Mudassir Arby ("Arby") — attempt to tie out the 10/28 seg. statement.

  • 7 p.m.: CME's Emergency Financial Committee approves a rule change releasing members qualified by MFGI, such that those members could become qualified and guaranteed by another clearing member in order to resume trading.
  • 7:46 p.m.: CME receives the amended MFGI seg. statement for 10/27 showing a segregation deficiency of $213,062,967.
  • 7:55 p.m.: CME's Emergency Financial Committee (i) authorizes the Clearing House to conduct an auction of MFGI's house positions in order to transfer the positions to another clearing member, and (ii) authorizes the Clearing House to accept certain deliveries from MFGI customers through Friday November 4 in order to minimize disruption to the markets.
  • 8 p.m.: CME notifies MFGI that it is suspended as a clearing member on all CME Group exchanges. Taylor's assistant subsequently emails a letter from Taylor to Klejna and Serwinski confirming the suspension.
  • 8:06 p.m.: CME receives MFGI's seg. statement for 10/28 showing a segregation deficiency of $891,465,650.

Source: CME


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Thu, 12/15/2011 - 20:00 | 1985550 Cheesy Bastard
Cheesy Bastard's picture

Corzine was told directly by Soros that his ass would be covered.  Soros doesn't care, he won't have to do the time.

Thu, 12/15/2011 - 19:55 | 1985521 Everybodys All ...
Everybodys All American's picture

What this tells me is that there are plenty of other broker dealers who likely have the same repo issues and are only a downgrade away from the same scenario unfolding. Having said that I hope I'm wrong.

Thu, 12/15/2011 - 19:55 | 1985523 nmewn
nmewn's picture
  • October 26, 2011

  • 7:45 p.m.: Taylor emails Ferber regarding CME helping "to ensure a good outcome for MF and your customers. You and your clients are important to us, and the clients' continued protection is paramount."

    Middle managers catch wind of it and now begin to liquidate as well, before calling their friends and distant

    Thu, 12/15/2011 - 20:00 | 1985545 Jumbotron
    Jumbotron's picture

    That's your own fucking skin before letting your peeps on the friends and family plan that .....oops...due to cell phone congestion you couldn't quite make that phone call in time.

    Memo to need to write up a 10th Circle of Hell for these bastards,

    Thu, 12/15/2011 - 20:57 | 1985677 nmewn
    nmewn's picture

    Note the conjectured "shadow timeline" I presented...the big dogs had already cashed out at the first wiff.

    What I really want is an Italian implosion, then the vulture who picked up these "assets" (thats a whole nuther discussion) for around ninety four cents on the dollar gets a chicken bone stuck in his throat and croaks it up for fiddy cents.

    I think we all know who I'm talkin about ;-)

    Thu, 12/15/2011 - 19:55 | 1985524 Glass Steagall
    Glass Steagall's picture

    I suspect that the implosion of MF Global was engineered as a way to undermine world confidence in the US dollar and start a run on a global scale – thereby forcing what is no doubt the real agenda: WW3. We have no other card to play and without an engineered financial collapse, epic war would be rejected outright and squashed by the likes of China and Russia. With a financial collapse, it’s every man for himself and the bullets can fly without much finger pointing and self- preservation the only protocol.

    Fri, 12/16/2011 - 03:52 | 1986230 Bringin It
    Bringin It's picture

    Default was engineered to avoid futures default IMO.

    Thu, 12/15/2011 - 19:56 | 1985525 Cone of Uncertainty
    Cone of Uncertainty's picture

    • Approx. 1 a.m. —2 a.m.: CME learns the deficiency is real: Serwinski and O'Brien call Procajlo into Serwinski's office and tell him there is an actual shortfall; about $700M was moved to the broker-dealer side of the business to meet liquidity issues in a series of transactions on Thursday, Friday, and possibly Wednesday. Additionally, Procajlo is told there was a loan of $175M of segregated funds to MF UK.

    THIS  ^

    Thu, 12/15/2011 - 19:57 | 1985530 jcaz
    jcaz's picture

    Go ahead and make them whole, Jon- you got that sort of spare cash, right?

    The phrase "I take full responsibility" should begin with his checkbook on the table.....

    Thu, 12/15/2011 - 19:57 | 1985533 Jumbotron
    Jumbotron's picture

    Hello Mr. Corzine's arm....

    I'd like you to meet Mr Syringe Full of Potassium Chloride

    Thu, 12/15/2011 - 19:58 | 1985538 IndicaTive
    IndicaTive's picture

  • 11 a.m.: Taylor, Donohue, and Duffy seek and obtain Jon Corzine's phone number. They do not recall speaking with Corzine.
  • Long TracFone

    ?And...Procaljo sure does "indicate" well.

    Thu, 12/15/2011 - 20:00 | 1985551 Waterfallsparkles
    Waterfallsparkles's picture

    Keep thinking about it is a Wonerfull Life where the absent minded Uncle left an $8,000. deposit in a newspaper on Potters desk.

    Poter never admited having the deposit.  And Baileys S&L almost went down.

    Somehow I think it all leads to JPM.  I may be wrong but just maybe they should check JPM books to see if there was a large "deposit" of a few Billion on the day the funds went missing.  With all of those Millions and Billions flying around, with the liquidations and customer withdraws (most of which were reversed) who really can say?

    Thu, 12/15/2011 - 20:06 | 1985571 Jumbotron
    Jumbotron's picture

    +1000 Jingling Bells signifying angels getting their wings.

    That's right Zuzu, that's right.

    Thu, 12/15/2011 - 22:07 | 1985822 SillySalesmanQu...
    SillySalesmanQuestion's picture

    So bye, bye MuthaFuckin Global Pie

    Corzine drove to Chase, but Chase said he was dry

    Jamie and the boys were drinking whiskey in Rye

    Singin' this will be the day that you die

    This will be the day that you die...


    Thu, 12/15/2011 - 20:24 | 1985615 Strut
    Strut's picture

    Do a little research in CMX registered silver as this went down. I think it was to the tune of ~1.3M oz! Word is that it was done to prevent a default of COMEX.

    Fri, 12/16/2011 - 01:55 | 1986116 JR
    JR's picture

    And with all these Millions and Billions flying around in this paper money tyranny with its immoral computer entries to only God knows where, it has become so easy to bandy a billion or a trillion about…but to really think about it for those who work for the $1.2 billion, it’s 100 million, 200 million, 300 million, 400 million, 500 million, 600 million, 700 million, 800 million, 900 million, 1000 million 1100 million, 1200 m i l l I o n dollars! Twelve hundred million dollars of purchasing power!

    Thu, 12/15/2011 - 20:01 | 1985559 bill40
    bill40's picture

    Normally I would argue that such things could not possibley happen, it simply wouldn't be allowed.


    But it just did.


    Thu, 12/15/2011 - 20:03 | 1985565 tony bonn
    tony bonn's picture

    corzine is a total bankster tool who has been assigned to various tasks by the's destruction was a massive hit job...

    Thu, 12/15/2011 - 20:09 | 1985578 Jumbotron
    Jumbotron's picture

    Let's see....

    Corzine was at one time the CEO of Goldman Sachs

    CEO of MF Global

    Governor AND Senator of one of the most corrupt states ever known..,. New Jersey.


    Nah.....he's not a tool.....he's not that connected.....not a surprise he doesn't know where the money went.

    Thu, 12/15/2011 - 20:09 | 1985580 Infinite QE
    Infinite QE's picture

    Bingo. They needed a place to park a lot of euro debt, game it as long as they could, then implode it.

    Thu, 12/15/2011 - 20:25 | 1985616 Papasmurf
    Papasmurf's picture

    1) defatult metals exchange while not admitting the metals vault is empty

    2) crash the price of gold & silver

    3) steal $1.2B, transfer wealth to Soros.


    Triple words score, scrabble, x2 if you start on the correct square on the board.

    Thu, 12/15/2011 - 21:16 | 1985731 divide_by_zero
    divide_by_zero's picture

    Plus they transferred some bonds "still on books" to UK just before BK, who else but Soros waiting to buy at fire-sale prices


    Thu, 12/15/2011 - 22:26 | 1985862 StychoKiller
    StychoKiller's picture

    That word would be:  Swindle.  (Figuring the score, left as an exercise for the reader!)

    Thu, 12/15/2011 - 21:11 | 1985709 MsCreant
    MsCreant's picture

    If you look at the other documents Tylere referenced, I think it is worse than that. Way worse.

    If we look deep enough, I think there is a smoking gun paper trail here to how the Central Banking system is operating in the market to prop shit up. This one got "seen" and now the cost is to make this one go away by killing it and letting it go bankrupt.

    I am no expert, but that is what I put together out of all this.

    THEY CAN DO ANYTHING, create funds, close them down, make up purposes and rules, THEY HAVE ABSOLUTE POWER, ABSOLUTELY.

    They could have created a "Fairy Fund" to save this shit if they wanted to.

    Maiden Lane. Come on, DON'T YOU SEE? We are being choked with jokes and scams. Laughed at as they rape us all. AND THEY ARE GETTING AWAY WITH IT!!!!!!

    Fuck me.

    Thu, 12/15/2011 - 21:12 | 1985715 MsCreant
    MsCreant's picture

    The Matrix is Real.

    Thu, 12/15/2011 - 21:55 | 1985797 mrgneiss
    mrgneiss's picture

    You'll love this one on creditors starting to have debtors thrown in jail in Illinois:,b=facebook

    Thu, 12/15/2011 - 23:15 | 1985917 hedgeless_horseman
    hedgeless_horseman's picture




    Come on, don't you think you are being a little hysterical?  

    It's not like they can just create money out of thin air.  

    Oh...ummm...scratch that.

    Thu, 12/15/2011 - 22:50 | 1985891 nmewn
    nmewn's picture

    Yes, it is.

    Still waiting for the jingoist proclamation to spend our savings "for the good of the country" though.

    Oh, wait ;-)

    Thu, 12/15/2011 - 22:52 | 1985893 Mr Lennon Hendrix
    Mr Lennon Hendrix's picture

    It's your fucking duty!

    Now sit down, shut up, and eat your peas.

    Thu, 12/15/2011 - 22:51 | 1985892 Mr Lennon Hendrix
    Mr Lennon Hendrix's picture

    I'll tell you what, Ms, the Matrix is real.  Real as it gets.  More real than real life, for many anyway.  Living pop and bubble gum dreams, we lie in are graves, while the dance music plays above our heads. 

    Laughing to the bank they are, and what to make of it.  So, to the bank; the bank; like when one stands on a side of the water.  And what happens on the other side?  Nirvana.

    So these bankster fuckers, they have played a game.  Their game is to pillage society, and thus to rape our culture, so they can make it to their dream of...welll, I won't pretend to understand the mind of a sociopath, but they have sinister dreams, and they think they can achieve them with this matrix.

    This, the Fiat Ponzi Matrix

    Fri, 12/16/2011 - 06:26 | 1986296 Calmyourself
    Calmyourself's picture

    The rulebook is gone these financial demons will do anything and I mean anything to keep this ponzi going.  There has been massive preparation for the eventual collapse and the most recent NDAA provision is simply the door closing behind us.  Buckle up Dorothy, Kansas is going Bye-bye..


    Thu, 12/15/2011 - 20:07 | 1985573 maxw3st
    maxw3st's picture

    I'm going to assume that "Ouch" referred to on the 30th Oct is Guch from CME mentioned previously in the timeline. If not, who is "Ouch", aside from a poor sap that had the misfortune of having an account with MFG?

    Scary thing is, there's probably not a bank in the system that isn't playing the same game with their customer account funds. It's like borrowing to gamble. Sooner or later it's going to bite you in the ass.


    Thu, 12/15/2011 - 20:23 | 1985612 MsCreant
    MsCreant's picture

    Shouldn't the term be embezzlement? 

    Thu, 12/15/2011 - 21:21 | 1985743 Papasmurf
    Papasmurf's picture

    It's only embezzlement if you do it.  If they do it, it's an honest mistake.

    Thu, 12/15/2011 - 22:22 | 1985856 Jumbotron
    Jumbotron's picture

    +1000 my bads.

    Thu, 12/15/2011 - 23:02 | 1985901 Mr Lennon Hendrix
    Mr Lennon Hendrix's picture

    As the Senator whoeverthefuck kept saying today, "It appears what was done was legal."  Although what Mother Fucking Global did was not legal, that which he was referring to, the Fiat Ponz, has certain legalities that justifies stealing. 

    Yes, that's right, stealing.  Robbing.  Pillaging.  The system makes it easy for certain practices to happen.  Such examples of these practices start with fractional reserve lending, move into rehypothecation, and run down the list of loanership means of transacting business.

    You are not your job, you're not how much money you have in the bank.  You are not the car you drive.  You're not the contents of your wallet.  You are not your fucking khakis.

    Thu, 12/15/2011 - 20:10 | 1985585 Waterfallsparkles
    Waterfallsparkles's picture

    Maybe we should look at who had the most Credit Default Swaps on MF Golbal failing.  That may be where the answer lies.

    Thu, 12/15/2011 - 20:10 | 1985587 PulauHantu29
    PulauHantu29's picture

    "You got the wrong guy."

    "I've been framed."

    "I  have no idea...."

    "I never gave permission....."

    Anyone else (i.e., the average person) who gives these lines in this situation would be in a 6x6 to help thier memory.


    Thu, 12/15/2011 - 20:22 | 1985611 Papasmurf
    Papasmurf's picture

    These are not "loans made from customer accounts".  These are outright thefts from customer accounts.

    Thu, 12/15/2011 - 20:29 | 1985626 Clearly_Irrational
    Clearly_Irrational's picture

    How can anyone think that 37x leverage is smart or rational?  At that rate if a moth sneezes in asia your NAV fluctuates 50%.

    Thu, 12/15/2011 - 20:45 | 1985659 lizzy36
    lizzy36's picture

    Well don't look at the EU banks which are generally leveraged at about 33x.

    Neither smart nor rational and likely insolvent.

    Thu, 12/15/2011 - 21:16 | 1985730 Cheesy Bastard
    Cheesy Bastard's picture

    And someone just threw some pepper at the moth.

    Thu, 12/15/2011 - 20:29 | 1985627 Clearly_Irrational
    Clearly_Irrational's picture

    How can anyone think that 37x leverage is smart or rational?  At that rate if a moth sneezes in asia your NAV fluctuates 50%.

    Thu, 12/15/2011 - 20:31 | 1985628 Miss Expectations
    Miss Expectations's picture

    So, just how do things like sweep accounts work?  Is it possible that programming was in place so that the accounts were being swept all the time?  At the point were everyone was looking to reconcile, the sweep was turned off and the funds were not returned (kept by JPM).

    Thu, 12/15/2011 - 22:05 | 1985824 Arkadaba
    Arkadaba's picture

    Funny how JPM kept getting referenced but no accusations.


    Thu, 12/15/2011 - 23:12 | 1985908 jelyfish
    jelyfish's picture

    Tyler is referring to tri-party repos (JPM) in other posts. It looks like what JPM did was legal. And it is starting to look like CME might be holding the litigation bag.

    Thu, 12/15/2011 - 20:40 | 1985639 Waterfallsparkles
    Waterfallsparkles's picture

    Another thought is that People that requested their money thru a funds transfeer Wire, that the Money was put into the Customers outside Checking Account but was then withdrawn thru a reverse wire.

    Is it possible that all of the Funds wired to Customers Personal Checking Accounts and then reversed after the reversal went into the main MF Global account and were not re segregated into their personal accounts with MF Global.

    If that is the case it is possible for JPM to come in and take what they though was MF global funds for their Margin Call over night which would then cause a shortage in Customer accounts as there was not time to re segregate the money back to the Customer.  As the Money had been withdrawn overnight before the start of the Business day. Still think JPM played a major roll in the missing money.

    Fri, 12/16/2011 - 08:28 | 1986386 Waterfallsparkles
    Waterfallsparkles's picture

    So many people requested their Money from MF Global.  Some people had the money wired to their Bank account and some people were issued Checks for the Money in their account before the Bankruptcy.

    The funds that were wired were taken out of Customers Accounts and wired them to the Customers outside Bank account, but then the wires were reversed.  The people that were given checks, when the checks were deposited bounced or if they cleared the money for the checks was reversed.

    What happened to that Money?  The Books would clearly show the Money withdrawn from the Customer's accounts and authorized for return to the Customer.  Yet, when the withdraws were reversed, where did that Money go?  Who, authorized the reversal of that Money wired into Customers outside Banks Accounts or thru Checks to Customers?

    How much Money did Customers request to withdraw that was reversed?  Is that where the missing Money is?  Where did the Money that was reversed go?  Did it go back into MF Globals Bank account or somewhere else?

    Thu, 12/15/2011 - 20:37 | 1985644 lemosbrasil
    lemosbrasil's picture

    In dec-2007, there wasnt a santa claus rally !

    From 12-31-2007 until 01-22-2008, DOW JONES, fell 12% !


    see here:

    Thu, 12/15/2011 - 20:43 | 1985653 WTF2
    WTF2's picture

    Did you see Corzine sweating today?  "slippery when dry" was what senator said.

    Thu, 12/15/2011 - 20:45 | 1985658 Milton Waddams
    Milton Waddams's picture

    Famous Last Words:  "I don't know".

    3 a.m.: Ramirez and Guch leave MFGI for the night. Procajlo stays until 8 p.m. the following day. During the night, Procaljo also participated in a phone call with senior MFG employees wherein one employee indicated that Corzine knew about loans that had been made from the customer segregated accounts. CME Group has provided information about this call and related conversations, and the names of the individuals who participated, to the Department of Justice and the CFTC who are investigating these matters.

    Thu, 12/15/2011 - 21:20 | 1985740 divide_by_zero
    divide_by_zero's picture

    Eric "the bagman" Holder's DOJ will sit on this, CFTC likely not much better but may get prodded by Congress. We'll see.

    Thu, 12/15/2011 - 20:51 | 1985668 Pancho Villa
    Pancho Villa's picture

    What is remarkable about this transcript is that Corzine doesn't seem to be involved at all, What was he doing? Golfing? Contemplating his navel?

    If I were the head of a company where a $891M shortfall had just been discovered, I would be in there screaming, yelling, and demanding that people trace the cause of the shortfall. But maybe that's just me.

    I guess for someone who is accustomed to working in government, a $1B shortfall is just pocket change. Nothing to get upset over.

    Thu, 12/15/2011 - 21:02 | 1985688 Cone of Uncertainty
    Cone of Uncertainty's picture

    What, you think his lawyer isn't in on the shell company sham?

    He was prepared for this from a legal standpoint from the minute they concocted the idea to blow up the company until it officially filed.

    His hands will be completely washed of all this--remember we are dealing with career frauds that have scammed the fucking system their entire life.

    Thu, 12/15/2011 - 21:48 | 1985782 El Hosel
    El Hosel's picture

     Sure looks like Corzine was brought in to lobby the Fed to make MF a primary dealer, that worked out well for MF. Corzine was allowed to trade for MF, that did not work out so well for MF or their customers and partners. That he had "no knowledge of daily operations" is not that hard to believe, that he was allowed to trade is.

    Thu, 12/15/2011 - 20:57 | 1985676 Paul Thomason
    Paul Thomason's picture

    This post appears anti-government activity - sorry website banned.

    Fri, 12/16/2011 - 01:02 | 1986070 dwdollar
    dwdollar's picture

    Zerohedge and the people who read it are nothing but rebel scum. Off to GITMO with all of you!

    Thu, 12/15/2011 - 20:58 | 1985678 suk mai freedum...
    suk mai freedumb stik's picture

    Mr. Whorezine spoke at my 2008 commencement ceremony and stressed how important it is to be educated and give back to your community.  I didn't really catch any more because I wasn't listening to a word the slimy bastard was saying.  Meanwhile the president of my school was busy embezzling funds from students for personal "loans" that ended up being mysteriously forgiven.  Here are all the students left holding the bag with 9.5% loans that can't be refinanced and tax deductions only counting for up to $2000 interest/yr if you make less than 72K.  Go Stevens Institute of Technology in Hoboken, NJ.  Really setting a good example for the future aren't we?

    Thu, 12/15/2011 - 20:59 | 1985680 JLee2027
    JLee2027's picture

    First class work, Bravo

    Thu, 12/15/2011 - 20:59 | 1985682 Cone of Uncertainty
    Cone of Uncertainty's picture

    I want one of those cocksucker congressmen to ask Cuntzine who was on the other side of the losses accrued by MF Global.

    "Who runs the fucking shell company with you Cuntzine?"

    Thu, 12/15/2011 - 21:06 | 1985699 luna_man
    luna_man's picture



    Oh boy, this is getting good...Can barely contol my twitching!

    First, the little CRIMINALS, on the way to the biggest CRIMINALS!   

    Requires a team effort by the 99%...RIGHT?


    Thu, 12/15/2011 - 21:08 | 1985701 wattsnotsaid
    wattsnotsaid's picture
    UK police seize computers of climate skeptic blogger in England

    The first blogger to break the Climategate2 story has had a visit from the police and has had his computers seized.

    TPTB strike back  US Dept of Justice driving it.

    Thu, 12/15/2011 - 21:08 | 1985702 wattsnotsaid
    wattsnotsaid's picture
    UK police seize computers of climate skeptic blogger in England

    The first blogger to break the Climategate2 story has had a visit from the police and has had his computers seized.

    TPTB strike back  US Dept of Justice driving it.

    Thu, 12/15/2011 - 21:14 | 1985723 Atomizer
    Atomizer's picture

    Blythe Masters is going to get fucked 7 days to Sunday. The rest of her direct/indirect pyramid workers will either go on strike or cop as a whistleblower for a large settlement. LOL

    Thu, 12/15/2011 - 21:21 | 1985744 vegas
    vegas's picture

    The major players in this clusterfark are nowhere to be found. Where's Jon-Jon? Duffy is doing what, besides partying and playing golf? Send the midgets in and if anything goes wrong, we don't know nuttin'.

    Sorry accounts, there was an "accounting error". Hope this doesn't cause you any inconvenience. What a bunch of shit from the worlds largest criminal organization.


    Thu, 12/15/2011 - 21:30 | 1985753 PLove
    PLove's picture

    When did CTFC obstruction of CME happen? 

    Or did I miss it on timeline?

    Thu, 12/15/2011 - 21:34 | 1985759 JR
    JR's picture

    “I simply do not know where the money is…” (my notes from video…)

    Capital Account: Gerald Celente on his Missing MF Global Money and the COMEX Gold Ponzi (12/13/11)

    That Senate hearing is nothing more than a whitewash, that the white shoe boys get a free ride once again. How come this guy hasn’t been indicted? Who, Who, could get away with a line like “I don’t know what happen to $1.2 billion,” and it’s a month and a half later.

    I just read that they sent in a predator drone up in Wyoming or North Dakota or someplace because they claim that this guy stole six cows. They brought in the swap teams, you know, a whole big deal. This guy, Jon Corzine., can’t find $1.2 billion and he gets a free ride from his senator friends with all these soft ball sophomoric questions. Anybody in the business knows what the deal is. And I know people in the business and they’ll tell you right away they know what’s going on.

    These funds don’t disappear, you have to listen to the language; listen to what Corzine says. Quote: I never gave any instructions to misuse customers’ funds. Oh, of course he didn’t say go steal the cat’s money, you know he just said go use it because we need it. So this is just a whitewash…

    Again, you see this isn’t the forum to do it; he should have been indicted. They should have had pros on this job really grilling and questioning him. And that’s not what’s going on. So regardless of what questions you ask, under this forum without an indictment, nothing is going to happen. The guy is free to do as he pleases.

    And there’s another bunch of information out here that’s not being put out. For example, it was only until a month before the company crashed that Moody’s downgraded their rating. Where was Moody’s all along before this, the company that used to rate junk AAA? They’re at it again.  

    And then you look at the CME group, the Chicago Mercantile Exchange, or as I like to say, the Chicago Mafia Enterprise. I heard that guy Clarence Duffy, who talked today as well, say a year ago that the CME group was a guarantor and they had a $100 billion (that’s with a capital B), a hundred billion dollars to cover losses like mine. I’ll tell you what’s going on, I don’t believe anybody has the money; I don’t believe the CME has the money to back it; I don’t think they have the gold to deliver. And that’s why I didn’t get mine and other customers. There’s a whole lot more going on than they’re putting out in public…

    Q: Do you trust your money as a retail investor anymore to be safe; do you trust it in the financial system?

    A: Not at all. Not at all. And that’s why, btw, I had a contract to pick up gold in Decembernow. This is the first time in history that the exchange has ever done this and let customers go bankrupt.  NO. That’s why I always recommend gold and silver. If you don’t have it in your pocket, your money… why do you think they came up with those stories all over the years of people putting their money in mattresses? Because of the corrupt system! Look what’s going on in Lithuania, look what’s going on in Greece and Italy - runs on banks. People are pulling it out, knowing that this is coming down.

     And on by the way, it’s very important with these guys, these front men for MF talking today, mark my words, they’re going to come up with a fall guy, somebody way down the line and probably with a name like Raamaanuj or…, some Indian, it’s easy not to like an Indian, they’ll come up with a fall guy to take the hit and Corzine and his buddies will walk free…

    I can only speak for myself; I only have operating expenses in the banks and nothing more. We are forecasting (we are coming out with our Top trends for 2012) economic marshall law of some sort in 2012; the systems are collapsing and there’s no way of saving them.”


    Thu, 12/15/2011 - 22:27 | 1985863 Miss Expectations
    Miss Expectations's picture

    Couldn't Gerald, with his resources, reach out to everyone who was robbed  by MF Global and compile a "data base" of all the stolen property.  I'd be especially interested in the gold subtotal. 

    Fri, 12/16/2011 - 01:27 | 1986102 JR
    JR's picture

    Maybe he will; he is a patriotic, passionate man. I intend to start a subscription to his newsletter. And not to do Gerald a disservice, I see I wrote swap team for swat and marshall for martial law and failed to catch them while proofing. The interview is quite powerful and dramatic, much more so than just putting it in on screen like this. When all's said and done, Celente, like ZH, will have played a major role in bringing this corrupt "system" down.

    Thu, 12/15/2011 - 21:35 | 1985761 Rob Jones
    Rob Jones's picture

    During the night, Procaljo also participated in a phone call with senior MFG employees wherein one employee indicated that Corzine knew about loans that had been made from the customer segregated accounts.

    I would really like to know who this employee is and what he or she has to say!

    Fri, 12/16/2011 - 01:56 | 1986130 Clay Hill
    Clay Hill's picture

    Watch the obituaries.

    Thu, 12/15/2011 - 21:37 | 1985763 Heyoka Bianco
    Heyoka Bianco's picture

    "CME senior management, including Kim Taylor ("Taylor"), Terry Duffy ("Duffy"), and Craig Donohue ("Donohue") are in Florida at the Global Financial Leadership Conference."

    Ironic? Cynical? Good old fashioned arrogance? Perrenial winner: just plain clueless? WHo could not see those two item linked in the same sentence and not sense the incongruity, the flat-out hilarity of the juxtaposition?

    Thu, 12/15/2011 - 22:13 | 1985838 Miss Expectations
    Miss Expectations's picture

    Check it out here:

    See the Agenda, too...After Party featuring The Beach Boys.

    Thu, 12/15/2011 - 21:45 | 1985776 kevinearick
    kevinearick's picture

    ...and Mr. Soros takes one more bite of the apple.

    Empire Contracts

    Empire building has been going on for a very long time; during normalized static operations, the denizens accepting its authority assume it is all powerful, which is the point of its education system. Bad assumption.

    The universe is quantum by nature. The empire is not; empires are incremental proprietors, operating a positive feedback loop between geographic control, through government misdirection, and the resulting scarce resources, created by the nonperforming output relative to planetary design. The empire seeks scale; the planet seeks diversity.

    From the perspective of the empire, human life is transitory, without individual value. From the perspective of the planet and universe, the empire is transitory. Quantum adaptation is the resulting distillation process.

    Because the universe is a balanced timer, it can and does anticipate collapse of sub-fulcrum gears into smaller, more flexible gears, which provide the same function at much more economical cost to the universe, in a negative feedback loop, which keeps time. The minute hand moves the hour hand and the process repeats.

    The beginner chemist is impatient relative to the titration process. All the action happens in the last drop and the objective is to make that drop as small as possible to increase precision (relativity circuit).

    The empire is an impatient procrastinator, as are its followers, which is why it busies itself with busy-work, expanding its positive anxiety feedback loop, and narrowing the exit straits, right up until its momentum carries it over the energy of catalysis cliff. The universe is not.

    If you think about it, your ladder, the sun, and all other processes work the same way. You beat your brains out trying to learn, and, once the picture becomes clear, you realize you worked a thousand times harder than necessary to replicate, which is why very few want to make pie (economic growth), and the vast majority prefer to compete for slots at the resulting trough.

    The objective is not to encourage anyone to enter into a real marriage. There is nothing on this planet more difficult. It’s a calling. The objective is to provide both a basic understanding of physics and the resulting socioeconomic outcomes, with little to no math, which the empire always outlaws in its death spiral.

    Universities increase complexity through specialization so that losses may be deemed profits in the obfuscation. To make that happen, math must be replaced by event horizon groupthink, in K-12, and, ultimately, from the womb, which brings us to breeding.

    The cattle are not going to feel secure unless tomorrow promises to look like yesterday, and they will be bored if successful, unless the profit, the amount of nonperforming assets hoarded in their closets, increases. If they should accidently happen upon happiness, a system unknown, they would immediately become anxious about how they destroyed yesterday’s happiness as the means to avoiding the same outcome in the future, ensuring that they are never happy, because the empire rewards increasing anxiety oscillation with nonperforming assets, as the imprinted need. That’s the proprietary civil marriage contract in a nutshell.

    Stimulus does have a multiplier effect, a negative one, which has passed the tipping point, creating credit/equity VIX. At some point, no amount of heroin will get the zombie up off the gurney again. The external symptoms are an aggregate function of the internal thinking process, and the American Enterprise System Constitution is brain-dead. The only difference between it and its predecessors is a few event horizons, which is why it is devolving into socialism and tyranny. It doesn’t pay to take the children of empire builders for the purpose of ransom.

    Empires are not evil; they are stupid. Hard-wired fiscal discipline… and the insanity of the false reserve assumption continues. Space travel is a function of timing; power is the derivative.

    Thu, 12/15/2011 - 23:20 | 1985925 acrabbe
    acrabbe's picture

    kevin. did you write this? if not, where did you get it from? i'd like to read more extra-terrestrial literature...

    Thu, 12/15/2011 - 21:49 | 1985783 gwar5
    gwar5's picture

    So, MFGlobal went from $200 million excess seg funds 26th(?) to $800+ million in missing seg funds reported to CME on Oct 31st. Those were the same days MFG was stalling and delaying the seg statements. They were stealing and transferring money under the CME noses while they were distracted looking for an accounting error. Oldest trick in the book.


    Simultaneously, MFG was also deep into their $1.2 Billion line of credit with JPM the last week of October. JPM got alll their money back before the MFG bankruptcy filing by receiving the client account money. MFG was otherwise illiquid. 

    Looks like Max Keiser was right in his interview today with InfoWars, Jami Dimon actually called Corzine that week and threatened to have him killed if he didn't make good on the 1.2 Billlion line of credit.

    BTW, who wouldn't love to be able to make a phone call like that to Corzine right now? I wish it were that easy for all the clients.






    Fri, 12/16/2011 - 03:22 | 1986216 hooligan2009
    hooligan2009's picture


    missed this when i posted mine..i recommend you to run the team of 4 at $1,500 an hour to spot the method (you can pay them $200 an hour) and become a fat cat, with freshly printed fed dollars! 

    Fri, 12/16/2011 - 04:32 | 1986249 rosethorn
    rosethorn's picture

    Missed your comment the first time through, but yes, claiming accounting error is nothing but a smokescreen to buy time.


    " the deficiency must be an accounting error and make statements to the effect that it is too big to be anything else."


    Thu, 12/15/2011 - 21:54 | 1985789 Atomizer
    Atomizer's picture

    Tyler, great job in connecting names associated with the MF fraud. It will get better as the story unfolds. Do you remember my posts about unknown people rearing their ugly heads in a media forum protecting themselves? We are just about there, but not tomorrow.

    If these fucksticks really needed to know where the money is. Corzine would have had all assets frozen. Then, keystone cop's monitoring the bank accounts would watch someone giving him cash to live on. Instead, we watch the WH circus pretending. At the end of the day, the monies exchanging hands to a kangaroo committee to protect Corzine have been caught. Several days ago, I posted that something will be leaked on the blogosphere. Be patient and enjoy the show.

    Keep up your great work Tyler!

    I just picked a random story for example.


    Thu, 12/15/2011 - 22:02 | 1985818 gookempucky
    gookempucky's picture

    Thanks TD for posting the white pages link. Below just about covers ---well---everything. Every asset can be and is currently being rehypothecated                                           EVERYTHING



    Tri?Party Repo Infrastructure
    Task Force Report
    6. Definition of asset groups
    Asset group Definition
    Asset?Backed Securities
    (Investment Grade and
    Non?Investment Grade)
    Securities that are secured by cash flows of a discrete pool of receivables or
    other financial assets, further divided by the following, if the 1% threshold*
    is met:
    ? ABS Investment grade securities and
    ? ABS Non?Investment grade securities.
    Agency CMO
    (Collateralized Mortgage
    REMIC and CMO securities issued by GSEs supporting the housing market –
    FNMA, FMAC, and GNMA.
    Agency MBS (Mortgage?
    Backed Securities)
    MBSs issued by Government Sponsored Enterprises (GSEs) that support the
    housing market – FNMA, FMAC, and GNMA.
    Agency Debentures and
    Agency Strips
    Debt securities issued by federal agencies or GSEs. These agencies and GSEs
    FMHA, FAMC, FCFAC, and FLBB, further divided by the following, if the 1%
    threshold is met:
    ? Agency Debentures excluding Strips and
    ? Agency Strips.
    Private Label
    Collateralized Mortgage
    Obligations (CMOs),
    (Investment Grade and
    Non?Investment Grade.
    CMOs issued by corporations or private institutions, further divided by the
    following, if the 1% threshold is met:
    ? CMOs Private Label Investment grade and
    ? CMOs Private Label Non?Investment grade.
    Corporate Securities
    (Investment Grade and
    Non?Investment Grade
    Unsecured debt securities issued and guaranteed by a corporation, further
    divided by the following, if the 1% threshold is met:
    ? Corporate Investment grade and
    ? Corporate Non?Investment grade.
    Equities Common and Preferred Stock, ETFs, ADRs, UITs, Mutual Funds, Warrants &
    Rights, and Convertible Bonds.
    Money Market CP, CDs, BAs, and Bank Notes.
    US Treasuries excluding
    Strips and US Treasury
    Bills, bonds, and notes issued by the U.S. Treasury, including TIPS, further
    divided by:
    ? US Treasuries excluding Strips and
    ? US Treasury Strips.
    * Please see explanatory note 7 for additional detail regarding the 1% threshold.

    Thu, 12/15/2011 - 22:03 | 1985819 Mr Lennon Hendrix
    Mr Lennon Hendrix's picture

    Now if only we had the block boxes from the planes that hit the towers.

    Thu, 12/15/2011 - 22:55 | 1985897 Money 4 Nothing
    Money 4 Nothing's picture

    That will never be released to the public and you know that. But we did happen to retrieve one pristine passport from one of the bankers.. err I mean terrorists from one of the impact flights, through the impact and fire, found early in the afternoon and submitted to the SEC.. I mean Authorities as proof a Muslim terrorist from Saudi Arabia... err, I mean Afghanistan hit the towers.

    Thu, 12/15/2011 - 23:12 | 1985913 indio007
    indio007's picture

    Not to derail the thread but the fact that carbon nanotubes where found in the lungs of WTC workers is a smoking gun.

    Case Report: Lung Disease in World Trade Center Responders ?Exposed to Dust and Smoke: Carbon Nanotubes Found in the Lungs ?of World Trade Center Patients and Dust Samples



    There is no natural process to make nanotubes.


    Thu, 12/15/2011 - 23:17 | 1985922 nmewn
    nmewn's picture

    Its not enough that 77 & 93 were though.

    Of course, the ones that were not "useable" are the ones to focus on for conspiratorialists. Even though 77 was strapped to "the missile" that hit the Pentagon for some reason...and 93 was "heard" loud and clear as well.

    Its not enough of a reality that bankers are raping the world. No.we have to discount the fact that there really are other evil people in the world as well...shape shifting reptilians and Keynesian Martians with

    Fri, 12/16/2011 - 04:23 | 1986244 Bringin It
    Bringin It's picture

    FYI, The conflicted preceding poster believes the official 9-11 tale, including the part about Bldg.#7.

    Fri, 12/16/2011 - 07:12 | 1986325 Money 4 Nothing
    Money 4 Nothing's picture

    Building 7 feel in sympathy of the twin towers. end of story.

    Fri, 12/16/2011 - 07:58 | 1986355 nmewn
    nmewn's picture

    What I believe, is my own eyes and confirmed evidence BI.

    There have been many crashes where black boxes were not recovered. Its not like they glided into the sea wheels up and sank.

    And to conclude (again) our running disagreement...I don't have a problem with another investigation. A proper one will uncover the incompetence at the highest levels that allowed this to happen and then the coverup in the last investigation to keep that hidden from view.

    Just like "subprime loans" there are unintended consequences for every action taken by government. Some people are just destined to be what are called renters, because they refuse the discipline to save or take a second job. Now, thanks to government programs, they have ruined credit and shattered dreams to go along with being a renter.

    Another investigation will show there are limits/conditions to living in an open society. The Gorelick Wall was something the government should not have extended to foreign nationals. And the student visa policy, as constructed by them, is a breach of trust with the natural citizen.

    It all points to gross incompetence not some grand murderous plot.

    Fri, 12/16/2011 - 01:56 | 1985954 jomama
    jomama's picture

    they got the 'one' from the drone, erm, 757 (lol).

    too bad it wasn't up to snuff when actual pilots audited it.

    This altitude has been determined to reflect Pressure altitude as set by 29.92 inHg on the Altimeter. The actual local pressure for DCA at impact time was 30.22 inHg. The error for this discrepancy is 300 feet. Meaning, the actual aircraft altitude was 300 feet higher than indicated at that moment in time. Which means aircraft altitude was 480 feet above sea level (MSL, 75 foot margin for error according to Federal Aviation Regulations). You can clearly see the highway in the below screenshot directly under the aircraft. The elevation for that highway is ~40 feet above sea level according to the US Geological Survey. The light poles would have had to been 440 feet tall (+/- 75 feet) for this aircraft to bring them down. Which you can clearly see in the below picture, the aircraft is too high, even for the official released video of the 5 frames where you see something cross the Pentagon Lawn at level attitude. The 5 frames of video captured by the parking gate cam is in direct conflict with the Aircraft Flight Data Recorder information released by the NTSB. More information will be forthcoming as we come to our conclusions on each issue. We have contacted the NTSB regarding the conflict between the official story and the FDR. They refuse to comment.

    Thu, 12/15/2011 - 22:09 | 1985831 mt paul
    mt paul's picture


    his father must be so proud...

    Thu, 12/15/2011 - 22:33 | 1985876 Jumbotron
    Jumbotron's picture

    Thanks, I most certainly am.



    Thu, 12/15/2011 - 22:13 | 1985835 Mr_Wonderful
    Mr_Wonderful's picture

    Heh, according to Max Keiser the Wall St. mob told Corzine you come up with the money somehow or it´s cement boots for you. If you play ball you don´t have to worry about a thing, our SEC lapdogs and other govt. assets will rubberstamp everything.

    Thu, 12/15/2011 - 22:15 | 1985844 Atomizer
    Atomizer's picture

    Looks like we may need to defund this worthless Government Agency

    FinCEN’s mission is to enhance U.S. national security, deter and detect criminal activity, and safeguard financial systems from abuse by promoting transparency in the U.S. and international financial systems.

    Thu, 12/15/2011 - 22:16 | 1985846 slewie the pi-rat
    slewie the pi-rat's picture


    hi!  we're banksters, and

    we rob banks!

    any questions, please refer to our enablers, the CME-Stone KopZ, k?

    Thu, 12/15/2011 - 22:26 | 1985864 rittter
    rittter's picture

    Did you notice that the CEO was not involved or mentioned in any of these transactions.  I guess you don't bother the CEO when the ship is sinking.  There is further proof that he really doesn't know what happened to the money.  If only they would have called him, he could have fixed everything. 

    Thu, 12/15/2011 - 22:28 | 1985868 chump666
    chump666's picture

    ZH, China has gone all metal on their Yuan ala Japan BoJ style.  Intervention panic.

    Thu, 12/15/2011 - 22:30 | 1985874 omniversling
    omniversling's picture

    Kock Bros cashed out weeks before...and where in that timeline was Corzine's interview for Geitner's job?

    Fri, 12/16/2011 - 01:13 | 1986080 slewie the pi-rat
    slewie the pi-rat's picture

    well, we know it had to be before the MFGlobal bonds were issued with the change in coupon contingent on him becoming US Treasury Sec'y

    isn't that the best part of this story? except for not being a client, of course

    the historical value of these fuking MFGlobal bonds will far outweigh any market value, forever

    someone should put one of these corzine-augmented MF bonds in the smithsonian with this article and string w/ tyler's picture and all our moronic comments and avatars

    maybe near stephen colbert's portrait, if that's not too controversial

    americana, BiCheZ! 

    Thu, 12/15/2011 - 22:51 | 1985888 earleflorida
    earleflorida's picture

    must read : done

    indigestion after reading : just beginning

    worth the heartache : absolutely

    thankyou tyler

    ps. your 2009 article did speak about the "RACER's"[?] that jpmc ate,... still in litigation with barclays?

    diamond [dual citizenship - uk/us] vs dimon is a classical death-match, if ya know what i mean,...  

    Thu, 12/15/2011 - 23:07 | 1985909 CapitalistRock
    CapitalistRock's picture

    This is absolutely freakin' awesome. I listened to most of Corzine's testimoy today. There is no way in a million years he could have been sitting in MF Global while it was literally on fire and known nothing of it. He damn well better spend decades in jail.

    If you didn't read the timeline carefully then I highly recommend it. Entertainment and drama doesn't get much better.

    Fri, 12/16/2011 - 00:48 | 1986054 JGambolputty
    JGambolputty's picture

    I'm waiting until Corzine's story suddenly changes from "I didn't know customer funds were being diverted . . ." to "JP Morgan forced me to do it."  Maybe he'll claim that they were both true, in that, with that big gun pointed at his head, he really didn't know what he was being told to do.

    Thu, 12/15/2011 - 23:26 | 1985935 Peter Pan
    Peter Pan's picture

    Corzine should only be released from jail after his cremation.

    Am I presuming too much in saying he will go to jail?


    Fri, 12/16/2011 - 00:44 | 1986046 Jumbotron
    Jumbotron's picture

    Go long presumptions and short the hell out of urns.

    Thu, 12/15/2011 - 23:29 | 1985944 Use of Weapons
    Use of Weapons's picture

    For all of you US people...

    DoD has, for the last year, been issuing training manuals that state that "terrorism" is defined by a number of actions, one of which being... "protesting".


    Do your own research. Heck, even Reddit, that swarm of young, dumb and naive consumers has it down:


    The Black Box is a whole lot bigger than you think....

    Thu, 12/15/2011 - 23:59 | 1985992 earleflorida
    earleflorida's picture

    "GOD Bless you - Julian Assange",... and fuck the black box - it looks red to me! 

    Thu, 12/15/2011 - 23:39 | 1985964 Eireann go Brach
    Eireann go Brach's picture

    Someone needs to kidnap Bernanke, hold a fucking man eating Rottweiler near his balls and get him to talk about what he knows about the banking system right now and to spill all the beans! Otherwise one ball comes off!..ok Ben you want to speak now....

    Thu, 12/15/2011 - 23:45 | 1985975 hmmmstrange
    hmmmstrange's picture

    Will this be the next Bears video?

    Thu, 12/15/2011 - 23:55 | 1985985 High Plains Drifter
    High Plains Drifter's picture


    look at all of those paperweights.  


    what would jesse and bert think about all of this?  


     When asked what his father Bert Seligman and legendary trader Jesse Livermore, who were business partners, would be thinking on a day like today, Sinclair replied, “If this isn’t a sign of capitulation, I’ve never seen one.  Today I think that’s just what you’ve seen.



    Thu, 12/15/2011 - 23:55 | 1985987 High Plains Drifter
    High Plains Drifter's picture


    look at all of those paperweights.  


    what would jesse and bert think about all of this?  


     When asked what his father Bert Seligman and legendary trader Jesse Livermore, who were business partners, would be thinking on a day like today, Sinclair replied, “If this isn’t a sign of capitulation, I’ve never seen one.  Today I think that’s just what you’ve seen.



    Fri, 12/16/2011 - 00:10 | 1986005 ebworthen
    ebworthen's picture

    How many more of these are out there?

    That is the question.

    And...will the FED and Treasury open up the taxpayer coffers (coffins) to bail them out again?

    My bet is yes, unless there are some healthy riots and hangings.

    Fri, 12/16/2011 - 00:14 | 1986009 cosmictrainwreck
    cosmictrainwreck's picture

    futures market LOVIN' it.......looks like the standard TO DA MOON Friday

    Fri, 12/16/2011 - 00:24 | 1986019 Monedas
    Monedas's picture

    Miscreant....I'd like to count the pleats in your skirt ! Anonymous

    Fri, 12/16/2011 - 00:54 | 1986058 indio007
    indio007's picture

    good stuff up in here.....


    FIAIISDA, CME, MF Global/Newedge and MorganStanlcy rccommended that

    thc Commission allow FCMs to engage in in-house transactions. FIAIISDA and CME

    suggested that the current terms of Regulation 1.25(e) should be more than sufficient to

    assure that the customer segregated account and the foreign futures and foreign options

    secured amount are protected in the event of an FCM bankruptcy.



    Someone has foot-in-mouth disease....


    More goodies.... 



    Global/Newedge wrotc that removing in-house transactions would not reduce FCM risk,

    "since FCMs would be unable to enter into and execute such transactions with and

    through entities and personnel with whom they have created an effective, efficient and

    liquid settlement framework.'


    someone saw this coming


    However, RJO stated that in-house transactions currently do not provide

    "protection to the capital base of the FCM arm of a dually registered entity.,,94 Without

    "ring fencing the capital associated with the separately regulated business lines," RJO

    does not consider in-house transactions to be satisfactory substitutes for separately

    capitalized affiliates or third parties.


    Fri, 12/16/2011 - 01:25 | 1986090 AssFire
    AssFire's picture

    Off topic; something local dealing with the continued anger and hatred that is building. I have no comment on the matter and my only disclosure is that I am long Remington Typewriters.

    Oh, and seeing the people they would propose to make my "Whataburger" ensures I will never buy anything from these TSA types.



    Fri, 12/16/2011 - 01:42 | 1986114 Hoody Who
    Hoody Who's picture

    Oh by the way, don't forget to dump your precious metals.  As Bubba told Forest on the bus, Can U Belee Dat?

    Gold Sheds 'Can't Lose' Status: Now, No One Wants It

    Fri, 12/16/2011 - 02:29 | 1986164 cranky-old-geezer
    cranky-old-geezer's picture



    The number of purely emotional comments here ("hang 'em", etc) is flat out disgusting. 

    The operational lesson learned from this MFG scandal is remove all unemcumbered funds and other assets from any brokerage account and close the account if possible ...and do it NOW.

    Fri, 12/16/2011 - 11:00 | 1986757 JGambolputty
    JGambolputty's picture

    The other operational lesson here is never allow a former trader to run anything other than a trading desk. Yes, Dick Fuld, I'm talking about you, too.  Sorry, what was that, Lloyd?

    Fri, 12/16/2011 - 03:17 | 1986208 hooligan2009
    hooligan2009's picture

    ummm...there looks to be a fraud in reporting of liabilities and assets that began to be discovered from october 28th ($220m in client assets) and october 30th (mistake on the assets side). this looks like it is a general practise within MF global (and other prime brokers?). the telephone calls ebtween all the interested parties MF + regulators has oviously relied on reports that were false for a very long time. the transactions that make up the $200m surplus have to be reconciled, if these are valied and not a fabrication, then the transactions that reduced this to an "unknown loss of customer assets" can be reconciled via MF Global and its custodian on a per trade basis. These transactions may have been unknown to the "marzipan layer" of mf global, but will have been entered into by those authorised within mf global and approved by staff at the custodian/settlement agent. It is clear that the reports in use and investigated/checked do not reconcile to the underlying transactions being put through the books. The books have to be reconciled from the bottom up and rebuilt, then compared to the actual reported numbers going backwards, each day, until they do reconcile to client assets. There, fixed who is going to earn $1,500 an hour for the three to six months this will take for a team of 4, crime busters.

    Fri, 12/16/2011 - 03:47 | 1986228 JR
    JR's picture

    The Establishment media continues its efforts to protect Goldman central control. From The LRC Blog:

    Limbaugh Calls Iowa Republicans 'Uninformed' Waco Nut Jobs . . .

    Posted by Thomas DiLorenzo on December 15, 2011 04:47 PM

    . . . because Ron Paul is tied for the lead in the polling in Iowa just weeks before the Iowa Caucuses. Like all their neocons today, Limbaugh is completely unhinged over Ron's tremendous popularity. He said today that Ron's supporters are "uninformed TEA Party conservatives" who support Ron's "Waco nut job things" he says about foreign policy (i.e., a foreign policy that defends Americans and not foreigners). And of course Rush repeated the Neocon Lie of the Day that Ron Paul has said that 9/11 was "an inside job." Of course, Ron never said any such thing. Rush is lying, just like his buddy Blackjack Bill Bennett did last night with Hannity.

    If Ron Paul wins Iowa, said Limbaugh, it will "discredit Iowa." How dare Iowa Republicans even CONSIDER voting for a man who stands for peace, free enterprise, and constitutionalism, as opposed to the Limbaughs of the world who stand for perpetual unconstitutional and non-defensive war, economic fascism, and PATRIOT Act demolitions of civil liberties. Fascism, in a word.

    Fri, 12/16/2011 - 04:29 | 1986250 Bringin It
    Bringin It's picture

    The media is powerful.  They don't belong to us.  They don't work for us.

    Fri, 12/16/2011 - 04:25 | 1986246 rosethorn
    rosethorn's picture

    $450 million accounting error...that's a steaming pile of horse manure.  Claiming accounting errors is just a smokescreen to buy time.

    Fri, 12/16/2011 - 04:50 | 1986247 Setarcos
    Setarcos's picture

    Black Box?  Unfortunate analogy methinks.  Or else most apt?

    Hark back to 9/11, which can be considered as the pivotal set of events that got us to where we are today, e.g. government and financialist cover-ups/collusion on an unprecedented scale.

    For the first time in aviation history - at least since Black Boxes were fitted to commercial aircraft - none have been recovered and/or examined.  And, for the first time in modern aviation history, no attempt was made to recover wreckage and try to establish what really happened.

    Nothing is going to come of the hypothetical "black box" hidden in MFG, J P Morgan and whatever entities have "crashed" into such world trade centres as Wall Str and the City of London.

    Anyone who has kept track of 9/11 knows that massive financial fraud was involved, e.g. the insurance taken out by Larry Silverstein on the WTCs ... and the destruction of financial records kept at WTC7 and the particular wing of the Pentagon, neither of which were hit by aircraft.

    Too late now.  FAR too many US citizens automatically believed what their gobermint told them to believe:

    Pete Seeger:

    Everything has gone too far, despite warnings as far back as Smedley-Butler and even some writers of the Constitution.

    Actually Plato was writing about all the kinds of shit we are now in nearly 2,500 years ago ... read his "Republic" if you can and dare to.

    The only significant difference is that our psychotic rulers have nuclear weapons at their disposal and much more convoluted economic weapons of mass destruction.

    Might as well add:

    And in the light of what is going on with Syria and Iran, I might as well add another song which runs even truer today than it did some forty years ago:



    Fri, 12/16/2011 - 09:27 | 1986410 Money 4 Nothing
    Money 4 Nothing's picture

    Black box or not, it depends on who's delivering it.

    Yes, a balck box was walked out of the Pentagon at 4:00 AM on Sept. 14th by the NTSB. Problem upon forensic retrieval of data, it recorded flight 77 at 124' AGL, not good but passed muster.

    Here is the press story:

    Not accurate, cause only one was retrieved.

    The seemingly weaponised flight hit the first floor dead center, weird for a 40' + tall aircraft that didn't touch the lawn don't ya think? Well do you?

    Left a 7' diameter hole through every ring.

    Where did the FBI store the ENRON investigation records?

    Who testified in front of the House Committe that the GAO couldn't account for 2.6 Trillion dollars missing from the Defense Dept. on 9-10-01. Rummy said he will get back to them with the answer.. and how!

    Although 2 unrelated events, are we talking about the same black box forenic information retrieval?

    I don't believe in coinicidences.. sorry.


    Fri, 12/16/2011 - 04:27 | 1986248 Clay Hill
    Clay Hill's picture

    Thank you TD for posting not only this, but also the "rare glimpse" link. WOW.

    Even though I've been reading this site for well over a year and a half now, (and struggling to understand much that is posted here re the banking system) that was a real eye opener.

    Fri, 12/16/2011 - 05:43 | 1986274 trx
    trx's picture

    Time for a showdown?

    Fri, 12/16/2011 - 06:44 | 1986308 goldenbuddha454
    goldenbuddha454's picture

    A 1.3billion dollar snafu.  This story is the template for all financial institutions now and in the future.  If the financial institution you invest with is rumored to be heading for a downgrade, then CYA mode has probably already been initiated beginning a month before the rumor even hits your ears, IMO.  It will be interesting to see if the democrats will ultimately drop Corzine in the grease fryer.  Elections coming up, would they want to be seen aiding and abetting a friend who's being seen as the latest Madoff? 

    Fri, 12/16/2011 - 07:19 | 1986331 WakeyWakey
    WakeyWakey's picture

    Corzine comes up twice in this breakdown.

    Oct 25th 11 a.m.: Taylor, Donohue, and Duffy seek and obtain Jon Corzine's phone number. They do not recall speaking with Corzine.

    Oct 31st During the night, Procaljo also participated in a phone call with senior MFG employees wherein one employee indicated that Corzine knew about loans that had been made from the customer segregated accounts.


    How the fuck is the CEO of a company that is in meltdown not at any meetings, in any conference calls or apparently making any decisions at all. Something stinks and he is being protected.

    These mother fuckers want all the reward and none of the risk, even when the reward is blatant theft.




    Fri, 12/16/2011 - 07:52 | 1986348 Orange Pekoe
    Orange Pekoe's picture

    Corzine is mentally ill. I think he needs to go to Gamblers Anonymous. Gambling with other people's money without them knowing it. Sick! He's like Tiger Woods when he got caught--it's a high.

    Sat, 12/17/2011 - 01:44 | 1989492 Setarcos
    Setarcos's picture

    Hi Orange, I used to go with the view that people without conscience - sociopaths like Corzine - are mentally ill and are as they are because of being abused as children, perhaps.  But I can no longer believe that.

    I have arrived at thinking that such people are born like it, even if environmental/upbringing factors may bring out the worst.

    I have little time for religion, but myths carried by religions often allude to important insights ... likewise parables, fables, legends, etc..

    I am inclined to now think that the story of Cain and Abel points to the possibility that half of our species is born to be "total bastard", whilst the other half is born to be "nice" (or naive?).

    When Carl Jung developed his "personality types" - e.g. extravert vs introvert - he cautioned NOT to take distinctions as absolute ... just as guidance in trying to understand where people are coming from.

    In this context the likes of Corzine would have some flashes of insight ... but that is all.

    He and his ilk can never have empathy for those they destroy ... and they get away with what they do, because Abel/insightful types can never quite believe that the "Cains" of this world (including females of the same personality type) would deliberately cause death, destruction and chaos.

    I am an "Abel-type" person who always tried to give "benefit of doubt" to those who ruined me personally, but who thrive themselves.

    Yes I have personal insight; but my general message is to anyone who trusted such as MFG and all other financial institutions.

    Without trust, nothing survives, not even for the currently successful "Cains" of this world.

    Rant over, but I hope that some of you get the gist of what I have briefly tried to convey.  Try watching:

    It is VERY hard to perceive reality (the video is the "Cave Analogy" of Plato/Socrates.

    I would rather that you read the "Republic", but this video is very good.



    Fri, 12/16/2011 - 08:58 | 1986425 RiverRoad
    RiverRoad's picture

    And through it all Corzine knew Nothing....Nothing......Nothing.... about any of this.

    Fri, 12/16/2011 - 10:33 | 1986687 GMadScientist
    GMadScientist's picture

    "11 a.m.: Taylor, Donohue, and Duffy seek and obtain Jon Corzine's phone number. They do not recall speaking with Corzine."

    They'll have a sudden rush of memory when it's time to turn state's on him though.

    Sat, 12/17/2011 - 15:25 | 1990126 Papasmurf
    Papasmurf's picture

    I contacted TD Ameritrade and requested delivery of a small portion of my cash account equities delivered in certificates.  I only get excuses.  I think the jig is up for all those who think they have any paper assets.

    I escallated the request  by demanding delivery of more shares of other stocks.  They babbled on about they couldn't do that due to new SEC regulations. 

    Mine is a cash account and terms said I could keep certificates in street name or have delivery for an additional expense.  This is my property they decline to return. 

    Is TDA the next MFG or bernie?  

    Mon, 12/19/2011 - 14:27 | 1994813 SmittyinLA
    SmittyinLA's picture

    looks like they bought enough time to short their own fraud and short everybody that's covering them.

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