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PFG's Chairman Was Forging Bank Documents For Years Even As The CFTC Gave An "All Clear"

Tyler Durden's picture





 

If there is an event that should cost Gary Gensler his job as head regulator at the CFTC, it is this. According to a just released Reuters report, the head of MFG(lobal) part 2, PFG, whose story we broke yesterday, Russell Wasendorf Sr. "intercepted and forged bank documents for more than two years to cover up hundreds of millions of dollars in missing money, a person close to the situation." Once Wasendorf realized he was caught, and knew the implications of his actions would be exposed for the whole world to see, he tried to commit suicide, and failed. "Wasendorf, 64, is reported to be in a coma after a suicide attempt Monday morning, according to a complaint filed by the Commodity Futures Trading Commission on Tuesday that accuses Wasendorf and Peregrine of fraud." And while crime happens all the time, what is truly stunning is that as we reported previously, the CFTC gave the firm a clean bill of health in its January inspection of Peregrine Financial Group. That's 6 months ago. The CFTC, as a reminder, was it regulator. The entity whose sole charge is to make sure that firms at least have real, not rehypothecated, cash in their segregated client bank accounts. PFG never did for the past two years. And somehow the CFTC missed this. MF Global was a warning shot, and the CFTC missed it entirely. And not only that but 2 months later ir pronounced PFG clean. For this Gensler has to be fired immediately, and with prejudice.

More from Reuters:

The source offered new details on how Wasendorf allegedly carried out the deceit, which involved the forging of confidential documents that the NFA uses to verify a broker's cash balance with its depository institution.

 

Wasendorf intercepted these documents after they were mailed by the NFA, the broker's first-line regulator, to U.S. Bank, where PFGBest had said it had well over $200 million on deposit, the person said. The NFA has said the account actually held just $5 million this week.

 

Wasendorf had set up a post office box in Cedar Falls, Iowa, according to a second person involved in the matter. It was to that post office box that NFA sent the documents, which were addressed to the bank.

 

The post office box was neither in Wasendorf's name nor registered to the bank, the second person said.

 

Wasendorf then forged signatures and fabricated bank balances on the documents and simply mailed them back to the Chicago-based NFA, the person said.

 

Calls to spokespeople for PFGBest and NFA were not returned. A woman who answered the phone at the home of Wasendorf declined to comment.

If anyone deserves some credit here, it is the NFA:

The scheme apparently began to unravel after the NFA began to press Wasendorf, who was an early advocate of electronic trading, to allow the regulator to confirm balances electronically and directly with the bank, rather than in a hard copy via mail, the person said.

 

NFA "started getting suspicious. He was resisting this new way of confirming the balance," the source said.

 

Wasendorf only recently signed the authorization, a decision that would quickly have led regulators to uncover the discrepancy, the person said. PFGBest's total segregated funds requirement was around $400 million, meaning more than half is missing.

Finally the spin: PFG is not MFG, it is Madoff.

While news that a second broker in less than a year appears to have misappropriated customer funds drew immediate comparisons to the MF Global failure in October, the source said the prolonged nature of the apparent deceit drew a more fitting parallel to the Ponzi scheme run by Bernard Madoff, though the size of the funds missing from PFGBest is tiny by comparison.

Well thank god for that: the farmers whose money is now forever gone can sleep much better knowing their cash was not Corzined, it was merely Made-off.

Of course, the real problem is that since there was only $5 million in the "client fund", there never likely was more than $5 million in real cash terms to begin with.

And this is what the CFTC signed off on.

Cur Congressional banana hearings, witch trials, and more fingerpointing which will result in more of the same: a former Goldmanite in charge of the CFTC, and virtually no hope that anything in these broken capital markets will ever be fixed until the big reset finally sweeps all this toxic garbage away.

 


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Tue, 07/10/2012 - 18:01 | Link to Comment francis_sawyer
francis_sawyer's picture

His 'Luis Dega' life awaits on PAPILLION ISLAND...

Tue, 07/10/2012 - 18:02 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Captain Edward J. Smith of the Titanic.......all clear. 

Tue, 07/10/2012 - 18:14 | Link to Comment CrazyCooter
CrazyCooter's picture

For this Gensler has to be fired immediately, and with prejudice.

Unfortunately this must mean he will be the next Treasury Secretary. Gotta hit a high bat average to warm that seat!

Regards,

Cooter

Tue, 07/10/2012 - 18:38 | Link to Comment NotApplicable
NotApplicable's picture

Outraged Tyler is outraged.

Tue, 07/10/2012 - 18:43 | Link to Comment HoofHearted
HoofHearted's picture

I nominate Turd Feguson for Gensler's seat. Thumbs up if you agree. Down if I'm an idiot. Maybe you should be able to hit both buttons...

Tue, 07/10/2012 - 19:02 | Link to Comment Pegasus Muse
Pegasus Muse's picture

William K Black

Tue, 07/10/2012 - 19:06 | Link to Comment cossack55
cossack55's picture

Good fuckin' call, PM. +15.8 trillion

Tue, 07/10/2012 - 20:14 | Link to Comment Thomas
Thomas's picture

Death by Bongo. 

Tue, 07/10/2012 - 23:08 | Link to Comment merizobeach
merizobeach's picture

"Wasendorf, 64, is reported to be in a coma"  ...in the Cayman Islands?

Tue, 07/10/2012 - 20:03 | Link to Comment cougar_w
cougar_w's picture

Good choice if only because Charles Keating wanted him dead.

Tue, 07/10/2012 - 20:30 | Link to Comment Vegamma
Vegamma's picture

Totally agree PM. I think Black is our last chance...and therefore TPTB will never let it happen. Sigh.

Tue, 07/10/2012 - 19:09 | Link to Comment laughing_swordfish
laughing_swordfish's picture

I nominate Chumbawamba.

If he declines, then Cognitive Dissonance/

Tue, 07/10/2012 - 20:25 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Chumbawumba. Oh yeah, baby.

The Carnage. The Carnage. 

Tue, 07/10/2012 - 21:25 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

If nominated I will not run. If elected I will not serve.

(BTW what does the position pay.........just in case...........you know.............ummm............never mind.:>)

<humor tag for the humor impaired>

Tue, 07/10/2012 - 20:09 | Link to Comment El Oregonian
El Oregonian's picture

"The LORD detests the use of dishonest scales, but he delights in accurate weights."

-Proverbs 11:1

New living Translation

Everyone either is rewarded or, pays in the end.

Tue, 07/10/2012 - 19:01 | Link to Comment Al Huxley
Al Huxley's picture

I thought Tyler understood how the system work.  Overlooking this kind of shit is exactly why Gensler has his job.  To think otherwise would be to believe that the regulatorly bodies are actually there to prevent fraud in the system, which is akin to believing in unicorns, fairies and wizards.

Tue, 07/10/2012 - 21:47 | Link to Comment JLee2027
JLee2027's picture

Yes, until caught and then the Genz is the fall guy is my take.

Tue, 07/10/2012 - 22:08 | Link to Comment disabledvet
disabledvet's picture

"The Chicago Way." Surprised anyone things any different in these here parts. Hell the President was even in Iowa "asking for your vote!" How about he start by having his AG arrested and taken to Gitmo? I know I wouldn't be too happy to know the "you know who" are up to it again! How 'bout that healthcare bill Mr. President! Shall we talk War in Syria! No? Really? Hmmmm. Go figure. Oh, look! It's Angela Merkel on Line One sir! i wonder what she wants!???

Wed, 07/11/2012 - 00:48 | Link to Comment Rasna
Rasna's picture

Wasendorf would have been in the clear if he had continued to use magic markers and crayons on yellow legal pad on those intercepted mail docs.  He probably could have enlisted Gensler's help.

It was only when he began substituting typed (air quotes) official looking (close air quotes) fraudulent docs, that looked real, that the NFA and CFTC became suspicious.  "Somethin jus didn't luk rit," claimed an unnamed CFTC source to FT. (You fuck with the mail... You go to jail),

As for the $200M?  That's "Weekend at Bernies" money for Jaime.  Holder doesn't even answer the phone for that.

And I'm also guessing that the PFG traders weren't looking at their monthly statements.  Oh, wait... 

Wasendorf was intercepting those also!

Tue, 07/10/2012 - 19:18 | Link to Comment newworldorder
newworldorder's picture

This is America - CrazyCooter,

No one with a title of Manager or Above gets fired with prejudice. Its just not done. It would brand a person as incomptent and delelict in his duties. Cant have that especially for an ex Goldmanite favorate son.

Wed, 07/11/2012 - 00:29 | Link to Comment Dr. Sandi
Dr. Sandi's picture

 

For this Gensler has to be fired immediately, and with prejudice.

Gensler's not going anywhere. But the guy who cleans his office is looking at 20 years of hard time for his involvement.

Tue, 07/10/2012 - 18:55 | Link to Comment Gringo Viejo
Gringo Viejo's picture

With all due respect to gays, (including my brother) I'm an old ex-marine and I mean only an expletive of stress in a combat situation.

YOU COCKSUCKING, MOTHERFUCKING, PIECES OF SHIT, CUNT, MOTHERFUCKING PIECES OF SHIT!

Tue, 07/10/2012 - 18:56 | Link to Comment Rainman
Rainman's picture

Semper fi , bro !

Tue, 07/10/2012 - 19:02 | Link to Comment francis_sawyer
francis_sawyer's picture

The NAVY invented sex...

MARINES invented sex with women...

Tue, 07/10/2012 - 19:11 | Link to Comment Gringo Viejo
Gringo Viejo's picture

As per Sid, in Ken Burns' movie "The War"...about WWII: The Marine recruiter told him "you can't enlist in the Navy anyway......because your parents are married."

Tue, 07/10/2012 - 19:21 | Link to Comment knukles
knukles's picture

Marines.
Why the Navy doesn't need goats aboard ships.

   Olde US Navy adage.

Semen
Naval personnel

   USMC knowledge.

Tue, 07/10/2012 - 22:01 | Link to Comment post turtle saver
post turtle saver's picture

My Ass Rides In Navy Equipment

Tue, 07/10/2012 - 19:47 | Link to Comment unemployed
unemployed's picture

 The Guadacanal Seabees told me that to be an Army Ranger you had to be an orphan....   Probably something about not having to write letters to the survivors etc.

Tue, 07/10/2012 - 19:48 | Link to Comment stormsailor
stormsailor's picture

hey now 

Tue, 07/10/2012 - 21:21 | Link to Comment HungrySeagull
HungrySeagull's picture

No no no.

The Marines invented sex by the Buddy System.

Two by two...

Tue, 07/10/2012 - 18:20 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Can we have his fucking waterboy, Bart Chilton, handcuffed to Gary's ankle when the boat sails? I don't want to see that CUNT even trying to stand tall as he goes.

Just in case you didn't get the emphasis Bart: CUUUUUUUUNT!

Tue, 07/10/2012 - 18:54 | Link to Comment nmewn
nmewn's picture

Saaay...isn't Chilton a "regulator"?

This won't go over well with the regulate first ask questions later crowd ;-)

Tue, 07/10/2012 - 20:30 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

He's a storefront manequin with a loop recorded message.

Tue, 07/10/2012 - 20:34 | Link to Comment nmewn
nmewn's picture

lol...touche'

Tue, 07/10/2012 - 20:32 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Saaaay... isn't PFG's Chairman a "private businessman?"

This won't go over well with the free market first ask questions later crowd.  ;-(

Tue, 07/10/2012 - 20:36 | Link to Comment nmewn
nmewn's picture

;-)

You're a private business "man" aren't you?

Tue, 07/10/2012 - 20:46 | Link to Comment LetThemEatRand
LetThemEatRand's picture

I am.   Do you think I should be eliminated because the PFG private businessman was corrupt?

Tue, 07/10/2012 - 20:50 | Link to Comment tmosley
tmosley's picture

Clearly you need more regulation because of him.

Tue, 07/10/2012 - 20:54 | Link to Comment LetThemEatRand
LetThemEatRand's picture

I am heavily regulated and doing just fine.  And I am a small business.  The problem as I see it is the large corporations and banks which are regulated on the books but not in practice due to capture of our government.       

Tue, 07/10/2012 - 21:24 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Tmosley

I finally figured you out.  You work for a big company and in advocating the elimination of regulation, you are talking your book.  Tell me I'm wrong.  What do you do?

Tue, 07/10/2012 - 21:06 | Link to Comment nmewn
nmewn's picture

"Do you think I should be eliminated because the PFG private businessman was corrupt?"

No, the question is, do you think other private business men should be eliminated because one private business man was corrupt?

That is what happens to "marginal" businesses just starting out when over regulated. Regulation can also act as the friend of the monopoly...that is, large corps, as it cuts down on the competition who do not have the staff to comply with the complexity and expense of compliance.

Think about it.

Tue, 07/10/2012 - 21:12 | Link to Comment LetThemEatRand
LetThemEatRand's picture

Of course I don't think that one private business man's corruption should end business.  I am in business, unlike you.  I have been advocating for a long time that we need to gut our regulatory system and take money out of govenment because regulation is a friend of big business.  You, on the other hand, have been advocating getting rid of government regulation almost completely.  Have you come around to my point of view?  

Tue, 07/10/2012 - 21:51 | Link to Comment nmewn
nmewn's picture

"I am in business, unlike you."

I was introduced to what my accountant called an intangible tax...when I had my own business. 

A curious contrivance of the state that says once one buys a piece of equipment or fixed asset they must continue to pay a tax yearly. I said no, shove it...it was the principle of the thing.

Point being, you're wrong again...I've been a private actor twice (legally) ;-)

"I have been advocating for a long time that we need to gut our regulatory system and take money out of govenment because regulation is a friend of big business."

Well, thats news to me, I don't read every one of your comments.

"You, on the other hand, have been advocating getting rid of government regulation almost completely."

I've already told you I'm not an anarchist...you can't possibly be confusing me with anyone else...so I'll take "almost" as it was intended?

"Have you come around to my point of view?"

Doubtful...but I do hold out "hope" for you...lol...your first reaction last night was more regulation and regulators...mine was jail on the regs we already have on the books.

A distinct difference.

Tue, 07/10/2012 - 21:59 | Link to Comment LetThemEatRand
LetThemEatRand's picture

You can depreciate the equipment etc.  And my guess is you never had enough personal property to trigger intangible.  

Putting that aside, you misunderstand me.  I advocate for more effective regulation and elmination of entire arms of captured government.  I want more regulation and less fake regulation.  Absent taking our government back from the big corporations who you believe should run the world, we are all screwed.

Wed, 07/11/2012 - 06:52 | Link to Comment nmewn
nmewn's picture

"You can depreciate the equipment etc.  And my guess is you never had enough personal property to trigger intangible."

lol...my accountant would be shocked, shocked I say, to learn that and wrong guess again. But lets not get side tracked.

My point is...laws, regulation and taxes are a burden on business always. Small business bears a higher burden by virtue of their size. Regulation is more easily borne by a large corp...not a small one. The more regulation you have, the less small biz, the more monopoly status of the large...less competition against the large.

If you can't see that this is a "hopeless" exchange.

"I advocate for more effective regulation and elmination of entire arms of captured government."

Well,so do I. Dept of Ed...DHS...Energy...HHS...its a very long list.

"Absent taking our government back from the big corporations who you believe should run the world, we are all screwed."

You do realize governments are nothing but a variation of a big corporation don't you?

The only real difference is a government can legally take your life or property by force and you have no recourse except to meet it with force. The shareholders (us) are the ones who give it that power for one reason and one reason alone...that they use that power sparingly to enforce law evenly and fairly across the board. When it doesn't, we dissolve the corporation.

Think about it, right down to the "letters of incorporation"...or as is commonly known...a constitution.

Tue, 07/10/2012 - 18:31 | Link to Comment westboundnup
westboundnup's picture

We never separate old friends.  Book them on the next transport.

Tue, 07/10/2012 - 18:59 | Link to Comment Dugald
Dugald's picture

Don't they jump out of windows anymore???

Tue, 07/10/2012 - 20:45 | Link to Comment nmewn
nmewn's picture

No.

Many have no shame anymore...no guilt...no honor...no pride...no integrity...no ethics...no morals...no values.

Nothing but hollow shells.

They are bereft of what makes them recognizable as human beings...and its not just in "high finance" either.

Wed, 07/11/2012 - 10:17 | Link to Comment StychoKiller
StychoKiller's picture

Most modern skyscrapers don't have windows that open (easily).

Wed, 07/11/2012 - 07:29 | Link to Comment Mr Kurtz
Mr Kurtz's picture

No, they become Governors and Senators for the state of New Jersey.

Tue, 07/10/2012 - 19:12 | Link to Comment laughing_swordfish
laughing_swordfish's picture

Road Camp 13. Both of them.

Tue, 07/10/2012 - 19:04 | Link to Comment FL_Conservative
FL_Conservative's picture

"Boss, the plane!"

Tue, 07/10/2012 - 19:34 | Link to Comment Peter Pan
Peter Pan's picture

A financial system to be operating as honestly as possible requires three components. Firstly some degree of conscience. Secondly some level of safeguards. And thirdly if the above fail, there has to be swift and effective punishment.

Given that all three components are severely lacking, one is forced to rely on previous metals which are immune to theft by the above.

Tue, 07/10/2012 - 20:15 | Link to Comment Jay Gould Esq.
Jay Gould Esq.'s picture

Devil's Island indeed.

Tue, 07/10/2012 - 20:12 | Link to Comment TeMpTeK
TeMpTeK's picture

To Our Valued Clients: 

We at R.J. O’Brien (RJO) recognize that you may have questions about how we safeguard your 

assets and ensure the financial stability of our firm.  I assure you that we remain committed to earning 

your business and confidence day after day.  We have always taken extraordinary pride in the service 

and breadth of offerings we provide for our clients.  And our clients have always taken comfort in our 

strength, stability and focus on risk management. To that end, I’ll remind you of some important points 

about our firm: 

? RJO has no relationship with or exposure to Peregrine Financial Group, the firm that is the subject 

of recent news reports. 

? RJO is a privately held entity with a nearly 100-year track record of success, the cornerstone of 

which is our integrity and a profound commitment to our long-term client relationships.  Testament 

to this, we have never experienced a material regulatory issue or loss of any customer funds. 

? RJO’s position in the marketplace remains very strong, with a regulatory capital base of over $188 

million -- $47 million more than is required by the Commodity Exchange Act. 

? We do not engage in proprietary trading.  We choose to operate as an agency model brokerage 

company that does not trade for our own account, thus focusing all of our resources squarely on 

our customers. 

? Through our entire history, we have maintained proper segregation of client assets.  At RJO, we 

consider this customer segregation rule to be a sacred, inviolable bond between our firm and our 

clients.  In fact, we currently carry $140 million in excess of what is required by the Commodity 

Exchange Act

? We use a straightforward method of reporting our segregated client assets, and we believe in full 

transparency in regard to these assets.  

? We invest customer assets within the guidelines of CFTC Rule 1.25.  However, we do not invest in 

European or other foreign sovereign debt, municipal  securities or asset backed securities.  We 

also do not engage in internal repo. 

? When customer segregated funds are deposited with a banking institution, the bank signs a 

written acknowledgement stating it will not use  the funds for anyone other than the customer.  

RJO’s segregated customer funds are deposited principally at Harris Bank, Wells Fargo, Fifth 

Third Bank, JPMorgan and the various exchanges on which RJO transacts business. We take 

great care on a daily basis in validating that the bank figures match up with what is reported to the 

regulators.  

We believe that prudent risk management, in addition to a strong capital structure, is the most 

effective means of providing a safety net for clients.  The combination of quality clients, brokers and 

staff, along with an active and experienced risk management team, ensures the safety of your assets 

and the capital base of the firm.  RJO will continue to hold ourselves accountable to the highest 

standards which have earned our clients’ trust and confidence for nearly 100 years.  We are ever 

grateful for your business and look forward to serving you for years to come. 

Tue, 07/10/2012 - 20:34 | Link to Comment Al Gorerhythm
Al Gorerhythm's picture

Promises, promises.

Tue, 07/10/2012 - 20:51 | Link to Comment THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

God HELP US..This video shows this man pulled over and asked if he was a "citizen". If this happens, follow him..

Welcome to the Police State!

http://economicaldepression.blogspot.ca/

Tue, 07/10/2012 - 17:58 | Link to Comment midgetrannyporn
midgetrannyporn's picture

The Allstate guard dog commercial comes to mind:

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

Tue, 07/10/2012 - 17:59 | Link to Comment barliman
barliman's picture

 

The SCOAMF has to go first. ...

... then we can worry about the other vermin.

barliman

Tue, 07/10/2012 - 18:00 | Link to Comment Harvey Lee Oswald
Harvey Lee Oswald's picture

Cue progressive noise that we need more regulatory oversight

Tue, 07/10/2012 - 18:10 | Link to Comment cougar_w
cougar_w's picture

we needz moar reguritory overseas.

Tue, 07/10/2012 - 18:27 | Link to Comment francis_sawyer
francis_sawyer's picture

 (+1)... lol ~ only COUGAR could be so succinct!... :-)

~~~

Wait... shuld ida mizspeled dat?

Tue, 07/10/2012 - 18:39 | Link to Comment NotApplicable
NotApplicable's picture

It's LOLcat.

Tue, 07/10/2012 - 18:39 | Link to Comment JohnnyBriefcase
JohnnyBriefcase's picture

cooger pls

Tue, 07/10/2012 - 18:11 | Link to Comment Rusticus
Rusticus's picture

If it leads to more bankers in comas, why not ?

Tue, 07/10/2012 - 19:22 | Link to Comment knukles
knukles's picture

, bankers , bankers , bankers ,

Tue, 07/10/2012 - 18:13 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

I prefer the sentiment that these agencies are merely understaffed and underfunded. If we just make them BIGGER and give them MORE MONEY with MORE STAFF with the right people in place the whole world will rejoice and every man gets a handjob and orgasms for the ladies. Unicorns shitting skittles baby.

Tue, 07/10/2012 - 18:30 | Link to Comment youngman
youngman's picture

We would get better Porno Channels if they got bigger...

Tue, 07/10/2012 - 18:32 | Link to Comment Dr. Richard Head
Dr. Richard Head's picture

Free subscription to YouPorn for all regulators. That is the ticket.

Tue, 07/10/2012 - 19:04 | Link to Comment NotApplicable
NotApplicable's picture

Well, there goes the fuggin budget.

Tue, 07/10/2012 - 22:25 | Link to Comment Tijuana Donkey Show
Tijuana Donkey Show's picture

Quanitative skeezing....

Tue, 07/10/2012 - 18:14 | Link to Comment surf0766
surf0766's picture

progressive = marxist

Tue, 07/10/2012 - 20:59 | Link to Comment Blankenstein
Blankenstein's picture

There is no reason to have new laws if we don't enforce the ones that are already on the books.  New laws are nothing more than dangling carrots for the sheep.  

 

Tue, 07/10/2012 - 18:09 | Link to Comment TruthInSunshine
TruthInSunshine's picture

Dear Sirs,

 

This is outrageous!

Both Mr. Russell Wasendorf Sr. & Gary Gensler must be dealt with harshly and promptly!

I demand a full and impartial investigation of this egregious matter that, quite frankly, shocks the conscience of those of us who "play by the rules."

The financial system, the American People, and account holders at PFG deserve justice and relief.

 

Sincerely,

 

Jon S. Corzine

 

Former United States Senator (D-NJ), Former Governor of New Jersey, Former CEO of Goldman Sachs, Former CEO of MF Global (a former Primary Dealer), and prominent Obama Bundler

Tue, 07/10/2012 - 18:24 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

Sincerely, 

Honorable Jon S. Corzine

fixed it for ya. 

Tue, 07/10/2012 - 19:24 | Link to Comment knukles
knukles's picture

Honorable "fucking laughing all the way to the bank you can't touch me, motherfucker, LOL" Jon S. Corzine

Tue, 07/10/2012 - 19:41 | Link to Comment cougar_w
cougar_w's picture

Yes he signs off every letter exactly like that -- exactly -- giggling the whole time.

Except his personal secretary makes him clean it up before she'll send anything he's written.

Wed, 07/11/2012 - 00:25 | Link to Comment knukles
knukles's picture

LOL

Tue, 07/10/2012 - 18:36 | Link to Comment blueridgeviews
blueridgeviews's picture

Best comment ever! Thanks for BIG laugh.

Tue, 07/10/2012 - 18:01 | Link to Comment realtick
realtick's picture

The big deflationary reset.

Tue, 07/10/2012 - 18:01 | Link to Comment sunnydays
sunnydays's picture

CFTC  needs to be sued by all account holders of both the M****** F*****s!  People can actually sue them too.

 

enough is enough of the stealing of people's money.  It seems there is not one broker or bank that can be trusted at all.  You certainly can't trust the govt. agencies that are suppose to be regulating them.

 

 

Tue, 07/10/2012 - 18:05 | Link to Comment lakecity55
lakecity55's picture

Hang 'em all! Let God sort 'em out!

Tue, 07/10/2012 - 18:13 | Link to Comment cranky-old-geezer
cranky-old-geezer's picture

 

 

enough is enough of the stealing of people's money.

You ain't seen notin yet.  Wait till they grab your 401k's.

Tue, 07/10/2012 - 18:16 | Link to Comment john39
john39's picture

in reality, this has probably already happened...

Tue, 07/10/2012 - 18:54 | Link to Comment MsCreant
MsCreant's picture

I think the geezer is talking about when congress does it formally out in the open, but yeah.

Tue, 07/10/2012 - 20:48 | Link to Comment Quisat_Sadarak
Quisat_Sadarak's picture

Think about this for a just second.
The "Bush tax cuts for rich" end 2013. Dividends and Capital gains get taxed a 39% and 28% (plus additional 3.9% with recent court O-care ruling) above $250K ("The Rich").

With imminent inflation (pending the next FED QE installment(s)) your $5 dollars left in your 401K after inflation will be worth $5 million nominal eventually... thus you are now scumbag millionaire when you cash in your whole $5MM 401K to buy a single can of cat food for a last meal when you retire and report to the death panel, you then owe anywhere form 32%-to-43% on your windfall sale for a gain of $4.99MM. Pay up and kindly die.

That is how it is done "in the open".
The mechanism is already in place ;-)

Tue, 07/10/2012 - 21:05 | Link to Comment DeadFred
DeadFred's picture

When it's done it will seem to many as a proper and patriotic thing to do help the good old USofA prevail against China/Iran/whatever boogeyman they create. It will seem especially proper to those who don't have a 401K. The theft can't be done just outright so real people will die to give them the excuse.

Tue, 07/10/2012 - 18:23 | Link to Comment Ratscam
Ratscam's picture

as the visionary comedian George Carlin predicted back in the 90 is

Tue, 07/10/2012 - 21:25 | Link to Comment Bunga Bunga
Bunga Bunga's picture

It's theit own fault, nobody is forced to save in a 401k.

 

Tue, 07/10/2012 - 18:04 | Link to Comment Josh Randall
Josh Randall's picture

"It's not a lie, if you believe it..."  George Costanza

http://www.youtube.com/watch?v=vn_PSJsl0LQ

 

Tue, 07/10/2012 - 19:37 | Link to Comment ZeroAvatar
ZeroAvatar's picture

"This wine is the blood of Christ, and this bread is the body................."

Tue, 07/10/2012 - 18:04 | Link to Comment Rainman
Rainman's picture

A Squid disciple is commanding general at CFTC....he busy with other more important 'chores' than penny-ante embezzelment.... we should all know this by now.

Tue, 07/10/2012 - 19:39 | Link to Comment ZeroAvatar
ZeroAvatar's picture

Two.Hundred.Million.Mother.Fucking.Dollars!

Tue, 07/10/2012 - 18:08 | Link to Comment cougar_w
cougar_w's picture

Gensler: "PFG is down? Excellent news! The war in the east is proceeding splendidly."

Tue, 07/10/2012 - 18:09 | Link to Comment buzzsaw99
buzzsaw99's picture

the sec, cftc, etc., aid and abet the big fraudsters. the fbi, doj, etc., work for the squid. there is no law and order going on in high places.

Tue, 07/10/2012 - 18:10 | Link to Comment Turin Turambar
Turin Turambar's picture

Cost him his job?  PUHLEEEEEZ!  Most bureaucrats get a PROMOTION after something like this.

Tue, 07/10/2012 - 18:10 | Link to Comment tekhneek
tekhneek's picture

Oh my lucky stripes, a ponzi scheme!

Tue, 07/10/2012 - 18:26 | Link to Comment MsCreant
MsCreant's picture

The entire e-con-a-me is a Ponzi scheme!

It's so funny, we need to label the kind of con properly. Nevermind all of it is taking money from unsuspecting people and using it the way the thief wants to use it, instead of the intended purpose. Stolen funds are funds that have been comingled with the thief's wallet and bank account. But we must make a distinction here...

Tue, 07/10/2012 - 19:15 | Link to Comment laughing_swordfish
laughing_swordfish's picture

US Economy = Control Fraud married to a Ponzi Scheme

Tue, 07/10/2012 - 18:11 | Link to Comment fonzannoon
fonzannoon's picture

What about those other firms Tyler said to watch out for earlier? Is anyone going to check if the regulars are also sending hard copy statements?

Tue, 07/10/2012 - 18:11 | Link to Comment tlnzz
tlnzz's picture

"he tried to commit suicide, and failed."

Apparently, this guy can’t do anything right.

Tue, 07/10/2012 - 19:04 | Link to Comment Silver Alert
Silver Alert's picture

If the crooks never get punished why did he try to kill himself?  Could it be to keep embarrassing details of "arrangements" from being exposed?  Maybe he was suicided instead like that BOE official who had multiple stab wounds to the chest and defensive wounds on his arms. 

Tue, 07/10/2012 - 20:12 | Link to Comment Miss Expectations
Miss Expectations's picture

Since we don't know, I'd venture that he merely succumbed to a fatal exposure of trichloroethane contained in correction fluids, including Liquid Paper.  Just how do you fake bank statements?  I would LOVE to see the paperwork that he was submitting...sounds like a job for Willliam Banzai.  I'm sure it's more complicated that crossing out $5,000,000.00 and typing in $208,300,198.16.  AND he wasn't doing this alone in his basement, either.

Tue, 07/10/2012 - 22:29 | Link to Comment TheFourthStooge-ing
TheFourthStooge-ing's picture

Miss Expectations said:

I'm sure it's more complicated that crossing out $5,000,000.00 and typing in $208,300,198.16.  AND he wasn't doing this alone in his basement, either.

He had help from Linda Green.

Tue, 07/10/2012 - 18:12 | Link to Comment Shizzmoney
Shizzmoney's picture

You gotta be fucking kidding me!

For this Gensler has to be fired immediately, and with prejudice.

Instead, he'll either a) get a raise or b) get a comfy new job with some investment firm

Let's see if Santelli talks about this.

Tue, 07/10/2012 - 18:18 | Link to Comment Normalcy Bias
Normalcy Bias's picture

If you will just sign this, Mr. CFTC. Right here.
Yes, yes. What the hell is it?
Well, under the provisions of this bill, we would snatch two hundred thousand acres of Indian land, which we have deemed unsuitable for their use at this time. They're such children.
Two hundred thousand acres? Two hundred thousand acres? What'll it cost, man, what'll it cost?
[brings out a carton of paddleballs] A box of these.
Are you crazy? They'll never go for it. And then again they might. Those little red devils... they love toys!

Tue, 07/10/2012 - 19:47 | Link to Comment Real Estate Geek
Real Estate Geek's picture

"The region is home to no one, save the Red Indian, and these heathen savages may be either exterminated or relocated to less valuable land, such as the so-called oil-fields of Oklahoma, where noisome substances bubble out of the Earth."

 

http://www.theonion.com/articles/strom-thurmond-calls-for-construction-o...

 

Tue, 07/10/2012 - 18:15 | Link to Comment tony wilson
tony wilson's picture

if i was running the hospital i would say.

ok doc keep him alive give him the min amount of medication for life but take away the pain killers.

let him feel the tortures of the damned.

let him plead for mercy.

make him reject his money grasping thieving  zionist racist belief system in the hope of relief.

when he does carry on regardless.

only through the  pain torture and perpetual agony of the banksta's within a gitmo style torture facility will the human race get any payback

Tue, 07/10/2012 - 18:21 | Link to Comment Cursive
Cursive's picture

@tony wilson

I want him alive so he can turn state's evidence on his bankster buddies.

Tue, 07/10/2012 - 18:56 | Link to Comment Mentaliusanything
Mentaliusanything's picture

Alive,you want him alive to spill da beans.

We are Talking the Chicago Mob here .. "Legitimate Numbers"Mob

That one is not long for this World.

He will have "vistors"

Tue, 07/10/2012 - 18:21 | Link to Comment cougar_w
cougar_w's picture

I think you might enjoy this one:

http://madscienceunlimited.com/fiction/aTearForTheSinner.html

And so, to become cat food. I don't suppose it gets any lower than that.

No there is one more that's worse: To be unmade entirely. Leaves a wonderful large stain, however it doesn't hurt quite as badly.

Tue, 07/10/2012 - 23:25 | Link to Comment TerraHertz
TerraHertz's picture

That was a very enjoyable read. Thank you.

In return: http://everist.org/texts/Fermis_Urbex_Paradox.htm

 

Hey, your website pipes-frontage looks a lot like mine. everist.org

Tue, 07/10/2012 - 18:14 | Link to Comment Bugsquasher
Bugsquasher's picture

Can't we just find him a lamp post instead?

Tue, 07/10/2012 - 18:37 | Link to Comment MsCreant
MsCreant's picture

Save some money and resources, now you're talking...

Tue, 07/10/2012 - 19:10 | Link to Comment Killtruck
Killtruck's picture

Speak of efficiency, you could reuse the noose!

Tue, 07/10/2012 - 19:34 | Link to Comment knukles
knukles's picture

In the good olde days of the Roman Empire, when somebody screwed up thereby affording the peasantry a glimpse of the depth and breadth of the theft and depravity, violating the unwritten rule of the powers that be (similar to the first two rules of Fight Club, BTW) they were publicly crucified along the Apian Way to great spectacle, fanfare and public celebration.

Tue, 07/10/2012 - 20:23 | Link to Comment Miss Expectations
Miss Expectations's picture

But, it was the slaves who were crucified that time.

Tue, 07/10/2012 - 21:22 | Link to Comment Miffed Microbio...
Miffed Microbiologist's picture

If my history serves me correctly, after the crucification the body was released to the public to abuse as they wish (head used as a football etc) and then what ever was left was hooked and thrown into the Tiber river. Them was the good 'ol days! Now the worst that could happen to a bankster is club fed. Pitchforks are to good for these people.

Miffed:-)

Tue, 07/10/2012 - 18:16 | Link to Comment ghengis86
ghengis86's picture

Leave nothing in any bank account, brokerage, fund, etc. save for your monthly bills. Buy PMs, guns, ammo, rice, beans, supplies, alcohol, porn, whatever. JUST DON'T GIVE THESE FUCKS ANY MORE MONEY TO STEAL FROM YOU!!!

When bankers hanging from lamp posts is a regularly occurring event, then you can reevaluate returning you cash to a financial institution. Even the it may take a few more years.

Tue, 07/10/2012 - 19:44 | Link to Comment cougar_w
cougar_w's picture

That's fine.

However whatever we don't lend them the Fed will.

Just say'n.

Tue, 07/10/2012 - 21:40 | Link to Comment ghengis86
ghengis86's picture

The Fed already does lend to them.  To the tune of $16 trillion so far. 

Just say'n

Tue, 07/10/2012 - 18:16 | Link to Comment JackT
JackT's picture

I'm sure Morgan has just misplaced the funds and Wasendorf accidentially slipped and suicided himself. All this fuss over nothing.

Tue, 07/10/2012 - 18:18 | Link to Comment Ted Baker
Tue, 07/10/2012 - 18:32 | Link to Comment Whiner
Whiner's picture

Correction to disclaimer at bottom: There is a substantial risk of THEFT in trading options that an investor (or regulator) may not discover until published in th media.

Tue, 07/10/2012 - 18:42 | Link to Comment NotApplicable
NotApplicable's picture

Wait, he's 64? Just how old is that picture?

Tue, 07/10/2012 - 21:31 | Link to Comment smiler03
smiler03's picture

The WSJ has a slightly more up-to-date photo @

http://online.wsj.com/article/SB10001424052702304022004577518680956762826.html

 

Tue, 07/10/2012 - 18:19 | Link to Comment Cursive
Cursive's picture

Just a damn minute.  The NFA was sending balance confirmations for U.S. Bank to an unverified post office box?  I wouldn't give the NFA any credit here.  Where did they get the post office box from?  Who literally typed this address into the NFA database?  That was the problem.  Sure, electronic confirmation would be great, but the NFA was doing a poor job from the start and electronic confirms can be intercepted/spoofed as well.

Tue, 07/10/2012 - 18:19 | Link to Comment AnonymousMonetarist
AnonymousMonetarist's picture

So the smurf-regualted NFA is the hero because they didn't even know what the proper submission address for US BANK was.... for years?

 

Seriously?

Tue, 07/10/2012 - 18:21 | Link to Comment sangell
sangell's picture

Gensler should commit suicide not Wasendorf. We also need a Federal 'SuperMax prison for these high dollar thieves. Solitary cells, 23 hours per day with web cams installed so the world can watch them do time.

Tue, 07/10/2012 - 18:21 | Link to Comment SheepDog-One
SheepDog-One's picture

Nah! Gensler has only capped off a star level resume to be Fed Chairman!

Tue, 07/10/2012 - 18:22 | Link to Comment yrad
yrad's picture

When are people going to jail? Iceland did it!!!

http://www.greenewave.com/other-countries-bailout-bankers-iceland-jails-them/

This country is sooooo lost. We all know this is just the tip of the Titanic

Tue, 07/10/2012 - 18:22 | Link to Comment Ms. Erable
Ms. Erable's picture

Coma? Fucker shoulda jumped.

Tue, 07/10/2012 - 18:36 | Link to Comment NotApplicable
NotApplicable's picture

It's Iowa. Corn only grows so tall.

Tue, 07/10/2012 - 21:26 | Link to Comment Miffed Microbio...
Miffed Microbiologist's picture

Ha ha! I've got that " Jump you Fuckers" song now stuck in my head.

Miffed:-)

Tue, 07/10/2012 - 18:24 | Link to Comment mick68
mick68's picture

I understand the cynicism, since we've watched fraudster after fraudster get caught, only to also watch nothing happen to them. And although we are not the elite, we can bitch loudly and en masse, which if nothing else, will increase the chance these dirtbags pay for their crimes.

So, howabout less cynicism and more activism? After all, these people are one way or another, paid by us.

Tue, 07/10/2012 - 18:34 | Link to Comment Ms. Erable
Ms. Erable's picture

Activism? Surely you jest - unless your idea of activism involves trees, lampposts, lengths of rope, and/or tying subhuman (i.e., bankster) limbs to quarter horses prior to the starting gun, that is.

Tue, 07/10/2012 - 18:42 | Link to Comment fuu
fuu's picture

Oooo drawing and quartering ftw!

Tue, 07/10/2012 - 18:27 | Link to Comment Meesohaawnee
Meesohaawnee's picture

if you want to know whats gonna happen to Gensler just redo Corzine. Find out  how much the check was to Obummers campaign fund. Then youll know the answer. Hell be on some tropical island with 5 gay cabanna boyz just like JC. The daily police blotter in Wall Street is just getting comical. Every day i ask myself what will be the scam discovered of the day. Good thing Obama got right on all that corruption like he promised. Whew. or else..

Tue, 07/10/2012 - 20:07 | Link to Comment lotsoffun
lotsoffun's picture

gensler worked for corzine.

"Gary Gensler joined Goldman Sachs in 1988 and spent 18 years there. He became a partner at the age of 30, youngest in Goldman Sachs history. He later became head of the company’s fixed income and currency trading operations in Tokyo by the mid-’90s, and eventually the company’s co-head of finance"

In early November, 2011, Gensler stepped aside from the CFTC's investigation of the giant derivatives broker MF Global because of his longstanding ties to Jon Corzine, the CEO of MF Global, for whom Gensler had worked while both were at Goldman Sachs.

nothing happens.  ever.  learn to love these guys.  they figured it out.  no guns need be involved.  you were robbed.  deal with it.

 

 

Tue, 07/10/2012 - 18:32 | Link to Comment HMFIC
HMFIC's picture

Well I'm done waiting for 'authorities' to put ANY credibility back into the system.  Nothing will change regardless of which version of OBAMNY gets bought...I mean elected. 

Therefore I plan to cash out all other accounts (before they all get MFG/PFG'd) and investing in only deliverable precious metals.  That is physical gold, silver, and lead.

 

 

Tue, 07/10/2012 - 18:41 | Link to Comment MsCreant
MsCreant's picture

Welcome to fight club.

Tue, 07/10/2012 - 18:44 | Link to Comment cougar_w
cougar_w's picture

Wait. Don't you have to hit someone?

Tue, 07/10/2012 - 18:33 | Link to Comment blueridgeviews
blueridgeviews's picture

I couldn't agree more Tyler. It sickens me to think the regulatprs are worthless. SEC with Madoff and now this.  What else is lurking behind closed/manipulated accounting books.

Tue, 07/10/2012 - 18:33 | Link to Comment rufusbird
rufusbird's picture

When I read some of the comments after a post, I save the film recommendations and request them from the library. When they come in, like the two I picked up today, I bring them home with the full intention to watch them in what time I have left over for entertainment etc after my daily projects. I usually don't get to watch them because the developments in the US financial system are way more facinating than fiction and movies and I spend more time reading this stuff on ZH.

I feel kind of like Woody Harrel's character in the Movie 2012 when he goes to the edge of the volcano to get front row seat of The Great Cataclysm.

Tue, 07/10/2012 - 18:33 | Link to Comment michael_engineer
michael_engineer's picture

Here is the trend :

MFG
PFG
SFG
VFG
YFG

Tue, 07/10/2012 - 19:55 | Link to Comment ZeroAvatar
ZeroAvatar's picture

Agreed, next one to go:  'SFG'.  (?)

Tue, 07/10/2012 - 18:35 | Link to Comment Downtoolong
Downtoolong's picture

 PFG is not MFG, it is Madoff

Funny how the same dichotomy keeps absurdly getting tossed up in these incidents like some sort of justification for what transpired.

We just can’t be sure, they say, whether a) he was a crook or b) just incredibly f^%$!ing stupid. Maybe one day they’ll get around to considering the possibility it was both.

Tue, 07/10/2012 - 18:43 | Link to Comment MsCreant
MsCreant's picture

No offense meant by this-- there is no stupid going on here, except maybe us...

Tue, 07/10/2012 - 18:53 | Link to Comment cougar_w
cougar_w's picture

However I did once hear an interesting account, and I keep it in mind.

Someone with insider understanding of finances once remarked that these people pulling their frauds and larceny are like infants. They really have no idea what they are doing, no idea how it is wrong, toss terrible fits when anyone gets in their grill, and basically destroy everyone and everything they touch without the least understanding of how that is a problem.

It's a fairly close description for a sociopath, but I think the truth is more interesting.

They are spoiled.

Rich and spoiled. Nobody as ever held any of them to any account, for anything, even murders. Their money buys them both protection and friends, and if need be, protection from their friends. They never do without a single thing that they want or desire, even for 5 seconds. They think they are immortal, that the laws apply only to others, and they live on another planet.

They might not even be all that intelligent. Just rich. When you are stupid but rich you cannot make mistakes which money cannot later correct. So you never learn. So you remain ignorant and child-like.

I think the stupid rich people have done well in the run-up to the end of the world. Now I suppose not knowing how to save themselves they will just suffer and die. They will no more understand this than they understood anything else about the real world, never actually having experienced it.

Tue, 07/10/2012 - 20:23 | Link to Comment MsCreant
MsCreant's picture

Good insight and my experience says you are correct. I just wanted to put in check the idea that it was mere incompetence that got us here.

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