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Someone Is Going To Jail For This: MF Global Caught Stealing Hundreds Of Millions From Customers?

Submitted by Tyler Durden on 10/31/2011 21:06 -0400

Say you are the head back office guy at MF Global, it is the close of trading on Thursday, the firm has already completely drawn down on its revolver, and all the resulting cash in addition to all the firm's cash at your disposal in affiliated bank accounts, up to and including petty cash, has been used to satisfy margin demands due to declining collateral value, yet the collateral calls just won't stop, and impatient voices on the other side of the phone line demand you transfer even more cash over immediately or else risk default proceedings commenced against you within minutes. What do you do? Do you go ahead and tell your superior that the firm is broke even though the co-opted media is trumpeting every 5 minutes that "MF Global is fine", knowing full well you will be immediately fired for being the bearer of bad news, or do you assume that courtesy of your uber-boss being the former head of the Vampire Squid, and thanks to infinite moral hazard which after Lehman made sure nobody would ever fail ever again, that there is simply no way that you will be left without some miraculous rescue, if only you can last one more day, and as a result proceed to "commingle" some client funds with the firm's cash. It turns out that at MF Global you do the latter... over and over... until you have literally stolen hundreds of millions from the firm's client accounts in hopes that the miracle rescue will come on Friday... then over the weekend... and then you realize no miracle is coming, partly because your actions have been exposed, partly because miracles only exist in fairy tales. The next thing you know, your firm is bankrupt and hundreds of clients are about to learn that all their money is gone. Poof. This is not a fictional tale. This is precisely what very likely happened at MF Global in the past 72 hours. And someone has to go to jail. That someone, if indeed this criminal act is proven to have taken place, should be none other than Jon Corzine himself.

The sad truth of just how low Wall Street has fallen comes to us courtesy of the New York Times:

Federal regulators have discovered that hundreds of millions of dollars in customer money have gone missing from MF Global in recent days, prompting an investigation into the company’s operations as it filed for bankruptcy on Monday, according to several people briefed on the matter.

The revelation of the missing money scuttled an 11th hour deal for MF Global to sell a major part of itself to a rival brokerage firm. MF Global, the powerhouse commodities brokerage run by Jon S. Corzine, had staked its survival on completing the deal.

As for the details:

What began as nearly $1 billion missing had dropped to less than $700 million by late Monday. It is unclear where the money went, and some money is expected to trickle in over the coming days as the firm sorts through the bankruptcy process, the people said.

But regulators are examining whether MF Global diverted some customer money to support its own trades as the firm teetered on the brink of collapse. If that was the case, it could violate a fundamental tenet of Wall Street regulation: Customers’ money must be kept separate from company money.

And just like in the Lehman collapse where tens if not hundreds of international prime brokerage hedge fund clients, due to no fault of their own, found themselves insolvent after their cash ended up being caught at the London Lehman office (the details of how that money was illegally transferred from London to the US is a different topic entirely) and never to be seen again except to satisfy general unsecured claims, so thousands of MF clients are about to realize that money they thought they had, even if completely unencumbered with other assets, read pure cash, read money not at risk, is now gone forever, and they will have to wait years until the bankruptcy process determines if the claim deserves priority status to the unsecured bondholders. Best case: assume a 70% haircut on the money, if it is every to be seen again at all.

So who can be sued? Who can be blamed for this malicious and purposeful criminal act? Why everyone from the back office clerk presented in the thought experiment above, all the way up to the man at the very top, Jon himself, who, like in every other act of Wall Street impropriety will plead stupidity and deny he ever knew of this crime. Unfortunately, our criminal regulators, who will be just as complicit in clearing him of all wrongdoing, will aid and abet this latest destruction of faith in US capitalism.

What happens next? Why customers at all other brokerages, all other exchanges, afraid that their money will suffer the same fate as MF, even if they transact with perfect solvent clearers and agents, will proceed to pull their money, as they know they have nobody to trust but their own prudent and forward looking actions. Which in turn will start the kind of liquidity drain that killed not only Lehman, but froze money markets, and with that brought the complete capital markets to a standstill, only to be thawed after the Fed pledged multiples of the US GDP to rescue Wall Street in October of 2008.

And that, dear reader, is called unintended consequences, and how the bankruptcy of a small exchange can avalanche into a crippling Ice Nine of what is left of capital markets all over again, courtesy of crony capitalism, rampant criminality and a regulator and enforcement body that is more fascinated with midget porn than any regulating or enforcing of the very firms it hopes to get an assistant general counsel job from in a few short years.

- advertisements -

Mon, 10/31/2011 - 22:05 | 1830524 lieutenantjohnchard

so said the 'tard yesterday: "I guarantee you that millions of hedge fund managers will be scanning furiously the "Top Percentage Gainers" list every morning in order to start dryhumping all kinds of "bargains"..."

Mon, 10/31/2011 - 21:53 | 1830393 Outlaw Of The W...

ah yes. jon corzine, the "unitarian" who spells his name without an "h", looks more jewish than any rabbi ive ever seen, and dates only jewesses.

Hitler was right. this is a race of nation wrecking scoundrels.

jews are a crime syndicate. a race cult masquerading as a religion.

Mon, 10/31/2011 - 23:07 | 1830584 Rynak

Erm, i think you forgot to change your username :-)

Aren't you supposed to post those copypaste nazi posts (literarily down to every single letter) under that other sockpuppet name, called "somethingOfCrap" (too lazy to lookup exact username right now)? Or were you banned after i posted your most recent 20 posts, and needed a new account?

For those who don't remember: He's that guy who in OWS threads called for the execution of all those muslims, blacks, jews, communists, "inbreds", "misfits", babykillers and a bunch of other groups. Exactly the same copypasted phrases.

Mon, 10/31/2011 - 23:08 | 1830700 Outlaw Of The W...

learn to spell and I might give a wet shit about you for more than 1/2 a second, jew.

Tue, 11/01/2011 - 00:00 | 1830801 Rynak

Whops, i just found your "other nick" again, lol.... appears that i was wrong - you're actually posting under the same account as back then.

Anyways, shall we revisit some of your post history? How about those:

Hitler was right.

---

he's a nation wrecking jew. the bane of the world.

---

you're a jew. you should have no say until we come to burn down your house and shoot your family.

---

you missed the typical scatalogical reference favored by khazarian "jews" such as yourself.

---

he's a fuckin jew

---

russian/pollack jew

---

Ironic comment seeing as how most inbred kikes look as if they were put together with spare parts.

---

you jew

---

not marching with michael moore, cornell west, and lawrence o'donnell.

I'll root for mass beatings and arrests of the unwashed amalgam of misfits demokratik party(blacks, jews, homos, communists, muslims, illegals, baby killers).

"What EXACTLY are you turds protesting"?

mumbles. "ummmm.....capitalism, fascism, racism, corporatism........you know real communism has never been tried".

uh huh

Hitler was right all along.

----

Free speech for idiots, too. Fixed it for you.

---

and you for your rabble rousing jew led marxist meeting?

or how about those?

Hitler was right.

---

Hitler was right.

---
LIESman, cramer, faber, greenberg, kaminsky, rovell, finerman.

A smattering of script reading chinks, blacks, and effeminate males.

cnbc.....this exposed example of the protocols of the learned elders of zion may as well be broadcast from the bowels of 85 broad street or tel aviv for what it is, and who and what it serves.

---

sarkozy is a dwarf hungarian jew, is he not? about as French as velveeta. odd, that.

---

go take your rebbi's bumpy pickle in your pasty, sloppy ass, you fucking kike.

---

We've been out of BAC for two years. Most folks will stay with them if the branch is 'convenient' out of laziness.

---

gw.

communist sympathizer/operative

trying desperately to join the Tea Party with the flea party (blacks, jews, homos, illegals, communists, muslims, baby killers).

---

h yes. The Nazis. The gift that never stops giving.

No business like shoah business, hey jew?

---

How this rabble is covered by the fellow travelers of the Fifth Column media will be telling.

As of now, I am assuming this impotent nonsense to be state sponsored unrest.

If the normal assortment of communists on kaballavision offer encouraement and support, then I will have been proven correct.

To anyone thinking that i'm just selectively picking posts of him - he's posting almost nothing else then this stuff - there are almost no posts that are not like the above. Check it yourself:

http://www.zerohedge.com/users/outlaw-wasteland/track

Tue, 11/01/2011 - 07:08 | 1831083 Hephasteus

You're a lazy ass troll. You don't work on weekends.

Tue, 11/01/2011 - 00:33 | 1830857 Civil Shepard

Outlaw, Lets see, you are arrogant, obnoxious, a religious zealot, always misdirecting. Hmmm? I think we all can see your true persuasion and your infantile intentions. You failed to read the ZH "suggested reading" on how to post without prompting black helicopters. Heres a parting tip, under Internet Options - Advanced, consider disabling "Enable DOM storage". Check it out.

Mon, 10/31/2011 - 21:29 | 1830394 vegas

Barry Soetero will not prosecute his bundler ass buddy Jon Corzine. Some drivel dick in accounting will take the fall.

Mon, 10/31/2011 - 21:37 | 1830430 JLee2027

True, but the public outcry will demand it and Zero will probably cave in.

Tue, 11/01/2011 - 02:17 | 1830952 Freddie

Nah. Corzine has a Gold Ex-Goldman Get Out of Jail Card. He also has a big Democrat get out of jail card. He will probably get an ambassadorship or Fed job.

Mon, 10/31/2011 - 21:38 | 1830434 TwelfthVulture

I blame the short sellers and speculators.

Mon, 10/31/2011 - 21:43 | 1830448 bob_dabolina

I blame Bush. This is all Bushs fault!

Mon, 10/31/2011 - 21:48 | 1830464 El Hosel

If we can't have Hank Paulson or Geithner jailed for all that is still wrong after all we have seen for all of these years Corzine is at least a suitable replacement given his former "stature" in the world of crony capitolism.

Mon, 10/31/2011 - 21:30 | 1830397 Sizzurp

Funny how this crap never comes to the surface until some company fails. Then it's open season for the politicians. One has to wonder how many crimes would have been uncovered had all the TBTF banks been allowed to fail in 08. There are only crimes if you fail, but if you are bailed out by taxpayers and continue paying off the politicos then apparently no crimes were committed? Celente is right, these guys make the mob look like a bunch of amateurs.

Mon, 10/31/2011 - 21:30 | 1830399 YesWeKahn

Repeat after me, nobody will be in jail; QE3 is coming; Print and print.

Mon, 10/31/2011 - 21:30 | 1830400 virgilcaine

Canary in the coalmine...

Mon, 10/31/2011 - 21:46 | 1830406 devo

The stock was halted today. Will it open ever again? I've never watched a stock go to 0...I'd be morbidly curious.

Mon, 10/31/2011 - 22:17 | 1830560 Pure Evil

You haven't seen the two asian losers I have in my brokerage account.

One is at zero, the other is at $0.20 and tanking with the Hang Seng.

Mon, 10/31/2011 - 22:31 | 1830604 SaveTheBales

I saw a quote on Finviz, I think it was, for -0.23. I've never seen a negative quote before, and certainly not on a Primary Dealer.

So I bought the whole thing about at what it was worth (-.25, but who's quibbling?)

Now I own the firm, and Corzine owes me $780 million for my purchase. The way everyone is talking, it sounds like that could run into issues.

Interesting to see how enthusiastically the 1% is eating its own.

Mon, 10/31/2011 - 21:33 | 1830410 SovietCong

This is a see-through email hoax. No such case in the SCOTUS. Stop spamming the ZH forum with this kind of sh*t.

Mon, 10/31/2011 - 21:33 | 1830413 jcaz

LOL- remember Rick Santelli this morning, assuring Wolfman that his money was safe?

Whoops- sorry Wolfman, guess I was wrong.

Better luck next time with your new career.

Mon, 10/31/2011 - 23:32 | 1830755 Goldtoothchimp09

http://www.businessinsider.com/eric-wilkinson-interview-on-mf-global-2011-10

wolfman speaks -- i think this was before hundred of millions appeared to be missing

Tue, 11/01/2011 - 06:56 | 1831076 jcaz

Yep- they assumed their money was still there- I wanna hear them TODAY. $700M missing and counting.....

Mon, 10/31/2011 - 21:34 | 1830416 AndrewJackson

I wonder how good the sources are for wall street journal's claim? If true, I would be flipping if I had anything tied up with these guys.

Tue, 11/01/2011 - 02:24 | 1830958 Freddie

Can anyone here remember a brokerage firm where they took client's money? Not BS scam hedge fund like Bayou or Bernie's non brokerage investment company - a brokerage firm. It NEVER happens because people know that they will go to jail. They file their quarterly reports with the SEC and you never ever touch the clients money ever. I cannot believe Corzine or these idiots grabbed $700 million of CLIENT'S MONEY to try to bail out their trade??!!

No one would be that stupid. This is not some mistake you can cover up either unless the Fed or Treasury cover it up or Goldman or Buffett come to the rescue. Interactive Brokers ran away like a scalded cat from MF. NY Post appears to be working the story tonight.

http://www.nypost.com/p/news/business/political_suicide_qCVtUTzdyDpn6Ndsb070zM

Mon, 10/31/2011 - 21:35 | 1830418 Blagio

Quick queue the Senate committee, drag Corzine in front of the panel to have his hand slapped and everything will blow over.

Someone's going to jail... HA! YGTBFKM!

Mon, 10/31/2011 - 22:28 | 1830591 XitSam

Corzine was last seen boarding a plane for "any country without an extradition treaty."

Mon, 10/31/2011 - 21:35 | 1830419 kito

NOVEMBER 6TH----INVESTMENT BANK/BROKER TRANSFER DAY!!!!!!

Mon, 10/31/2011 - 21:36 | 1830423 Bob

Jail, what's that?

Mon, 10/31/2011 - 21:45 | 1830456 seek

It's a place for Occupy Wall Street protestors. If you mainly follow financial news, I'm not surprised you've never heard of it.

Tue, 11/01/2011 - 01:38 | 1830924 dwdollar

So fucking true... How common people still believe in the system (and why they still play by the rules) is a mystery suitable for the X-files.

Mon, 10/31/2011 - 21:38 | 1830433 boiltherich

How many more market making primary dealers are in this same position and who are they?

Mon, 10/31/2011 - 22:00 | 1830504 Rynak

Mon, 10/31/2011 - 21:40 | 1830438 boiltherich

And how much money did they get from the taxpayers that is now gone forever?

Mon, 10/31/2011 - 22:03 | 1830518 Rynak

More than your mind can imagine.

Though, it appears there are some people making unimaginable things imaginable... even though it still is kinda "Oh.... oh my....."

Like for example:

http://usdebt.kleptocracy.us/

Mon, 10/31/2011 - 21:40 | 1830439 Darth Silver

now under the best case above of 70% haircut; should be consider that a "credit event" as well?

Mon, 10/31/2011 - 21:44 | 1830450 SlipStitchPass

TBTJ - To Big To Jail

Mon, 10/31/2011 - 21:48 | 1830460 TheAkashicRecord

//If that was the case, it could violate a fundamental tenet of Wall Street regulation: Customers’ money must be kept separate from company money//

After GLB, there is no legal firewall to prevent this though, right? Where is that tenant found specifically in law?

I am not condoning this activity, only I was under the impression that one of the arguments for repealing GLB would be to have the firewall back between investment banking and commercial banking.

Correct me if I am wrong, I am but an egg.

Mon, 10/31/2011 - 21:48 | 1830465 Shizzmoney

If that was the case, it could violate a fundamental tenet of Wall Street regulation: Customers’ money must be kept separate from company money.

We thought that was the case with Full Tilt Poker, too.

Watch Corzine get a pardon from Obama

Mon, 10/31/2011 - 22:11 | 1830544 penisouraus erecti

welcome to the kleptocracy

Mon, 10/31/2011 - 21:49 | 1830469 Nostradumbass

Love It!:

"Without fraud and war, America has NO business model!"

BUMPER STICKER MATERIAL!

Mon, 10/31/2011 - 21:49 | 1830470 ACP

For some strange reason, Airplane comes to mind:

http://www.youtube.com/watch?v=aZdp46Jen_wu

Mon, 10/31/2011 - 21:50 | 1830472 Freewheelin Franklin

Jail? HAHAHA. If Dick Fuld ain't in jail, then there sure-as-shit ain't nobody going to jail. You can bet your asses on that, bitchez.

Mon, 10/31/2011 - 21:50 | 1830473 penisouraus erecti

No jail time - his beard is too nice, much like the Bernanks - can't put a suave guy like that in jail

Mon, 10/31/2011 - 21:52 | 1830476 f16hoser

For a Laugh! Before they take-down the website:

Awards & Recognition

MF Global has received industry recognition for the leading role we’ve achieved in the markets—from our actionable insights to the access we deliver to major pools of liquidity.

2011

Ranking: #2 Overall Macro-Washington Research Category

Rated best in: Accessibility and Responsiveness

Rated best in: Useful and Timely Calls and Visits

Institutional Investor All-American Research Team Poll 2011

Ranking: #1 Exchange Traded Crude Oil and Refined Products Broker

Ranking: #1 Copper Broker

Ranking: #2 OTC Crude Oil and Refined Products Broker

Ranking: #3 Base Metal Options Broker

Ranking: #3 Nickel Broker

Asia Risk Commodity Rankings 2011
(rankings based on online survey)

Winner: Best Futures Broker 2011

Finalist: Best Forex Provider 2011

Finalist: Best CFD Provider 2011

TheBull.com.au

2010

Ranking: #2 Overall Macro-Washington Research Category

Rated best in: Accessibility and Responsiveness

Rated best in: Useful and Timely Calls and Visits

Rated best in: Written Reports

Institutional Investor All-American Research Team Poll 2010

Winner: Excellence in Trading, Risk and Portfolio Management, Industrial Metal Markets

Winner: Excellence in Trading, Risk and Portfolio Management, Traded Commodity Markets (all products)

Commodities Now

Ranking: #1 Overall Broker

Asia Risk Commodity Rankings 2010

Click here to learn more.

Ranking: #8 Overall Broker

Futures Magazine Top 50 Brokers 2010

Mon, 10/31/2011 - 22:32 | 1830607 Blagio

*cough* ENRON *cough*

Mon, 10/31/2011 - 22:35 | 1830611 penisouraus erecti

Benefits of working at MF Global

A culture of ownership where highly driven and motivated employees can thrive
Outstanding opportunities for advancement at a growing firm
Global presence, with offices in major financial centers, including New York, Chicago, London, Toronto, Dubai, Hong Kong, Mumbai, Tokyo, Singapore, and Sydney
Excellent benefits, including medical, dental, and vision coverage plans, 401(k) retirement savings plan, and an employee stock purchase plan

Apparently they left out the raiding of clients funds from the bennies.

Tue, 11/01/2011 - 07:28 | 1831105 Schmuck Raker

Here's Corzine's resume, ala Mish:

Corzine's Achievement Sheet

Mon, 10/31/2011 - 23:50 | 1830784 NumberNone

Some of the collapse may be my fault. I was on their site earlier today and there was an opportunity to do a live chat with an advisor...the options were 'Yes', 'No', and 'Never Again'. I chose 'Never Again'.

Mon, 10/31/2011 - 21:54 | 1830479 Rynak

Those clinging oh so strongly to the assumption, that no one will go to jail.... as if guarding one's own secret heroes (after all WHAT would some people do with their worldview, if they were robbed of their favorite antagonists? Or heck, even just if they became mortals?)..... what you folks are forgetting is something very simple.....

...you can bring up past evidence as much as you want. The past is not the now, and it certainly isn't the future. Do you really believe this global financial meltdown will go on, without at least some high profile "scapegoats"?

Important people will go to jail...... on the other hand, if it is enough of them, or even the right ones, is another question.

Mon, 10/31/2011 - 21:53 | 1830480 lynnybee

GOLDMAN !! bunch of money-changer criminals !

Mon, 10/31/2011 - 21:54 | 1830481 f16hoser

Careers at MF Global:

Benefits of working at MF Global

A culture of ownership where highly driven and motivated employees can thrive
Outstanding opportunities for advancement at a growing firm
Global presence, with offices in major financial centers, including New York, Chicago, London, Toronto, Dubai, Hong Kong, Mumbai, Tokyo, Singapore, and Sydney
Excellent benefits, including medical, dental, and vision coverage plans, 401(k) retirement savings plan, and an employee stock purchase plan

For more information on job openings available at MF Global, please click here to browse through current openings.

Even if you do not apply for a position currently listed, we still encourage you to create a profile on OneWire in order to be considered for future opportunities. To create your profile, click on the MF Global Careers graphic on this page.

Mon, 10/31/2011 - 21:56 | 1830484 f16hoser

Oh Well; you gotta addmit, this is some funny sh!t.....

MF Global: A Monkey fucking a Football

Mon, 10/31/2011 - 22:01 | 1830510 Big Corked Boots

Unless, of course, you had money with MF.

Or, you have money with another investment banker.

Or, you have money.

Or, you live in New Jersey.

Mon, 10/31/2011 - 22:04 | 1830523 penisouraus erecti

or, you live in the modern day lawless US of A

Mon, 10/31/2011 - 22:25 | 1830579 wearef_ckedwith...

As much as I abhored George W. Bush and feel betrayed by Obama -

A lot of this stuff germinated under Bill Clinton.

As far as giving credence to the killer philosophies of Robert Rubin and Larry Summers

regarding new financial products and trust in the ability of free markets to self govern.

Mon, 10/31/2011 - 22:57 | 1830658 Flakmeister

Try the S&L crisis or Miliken..... it started in the '80s... Rmember when "Greed is Good" became a mantra, and I am talking about Milton F. being channeled by Gordon G.

All that being said, Rubin and Gramm should both hang in a bipartisan public lynching....The Rosenbergs fried for treason and the damage they did to the Union is dwarfed by those two.

Mon, 10/31/2011 - 21:57 | 1830495 XitSam

Couldn't Corzine just have made a cocaine deal like Delorean?

Tue, 11/01/2011 - 00:18 | 1830834 surfer433

Couldn't Corzine just have made a cocaine deal like Delorean?

Ahh, those were the days brother.

Mon, 10/31/2011 - 22:01 | 1830498 virgilcaine

This is the tip of the iceberg re.. missing client funds in an unregulated hedge fund economy.

Why no criminal investigations? they know the epic fraud involved or don't want to know.

Mon, 10/31/2011 - 23:11 | 1830707 Rick64

Next on the political agenda. Regulation of Hedgefunds. Senate hearing show otherwise known as dog and pony show coming soon.

Mon, 10/31/2011 - 22:00 | 1830506 penisouraus erecti

So, does this move him to the top, or to the bottom, of the short list to replace Geithner? Hard to say.........

Mon, 10/31/2011 - 22:01 | 1830511 Wannabee

Next act in the play: Corzine, et al will successfully agrue they qualify for millions in compensation for sucking it up and staying behind to ensure an orderly bankruptcy process. Else, they could move on and make MILLIONS elsewhere.

Mon, 10/31/2011 - 22:01 | 1830512 KKAOSS

...in the name of the father , the son & the HOLY GHOST

40:1 leverage,,,crazy what were you smokin' Corzine ----WOW!

more midget porn for the masses...

hussa, let the bodies hit the floor

I want to see the perp walk

bastards...Golden Slacks

Mon, 10/31/2011 - 22:34 | 1830610 disabledvet

President's poll numbers are super low. Cain is tearin' it up in the Super South. And "that's a juicy target."

Tue, 11/01/2011 - 02:29 | 1830964 Freddie

Cain is ex Federal Reserve. Ron Paul with Santorum as plan B.

Mon, 10/31/2011 - 22:02 | 1830516 Jumbotron

Someone Is Going To Jail For This: MF Global Caught Stealing Hundreds Of Millions From Customers?

Bullshit ! 10's of TRILLIONS have been stolen from the people to save the world and nobody has gone to jail.

Mon, 10/31/2011 - 22:03 | 1830517 Cult_of_Reason

Corzine is too politically connected to go to jail.

Mon, 10/31/2011 - 22:57 | 1830666 earleflorida

not when your radioactive!

Mon, 10/31/2011 - 22:03 | 1830519 Cangaroo.TNT

So, does this make John Corzine Moe Green, or Fredo Corleone? Too early to tell?

Mon, 10/31/2011 - 22:03 | 1830521 Downtoolong

That someone, if indeed this criminal act is proven to have taken place, should be none other than Jon Corzine himself.

But, we all know it will be pinned on some rogue trader, junior accountant, or back office clerk who coincidentally and conveniently was hired from a competing firm just three weeks ago.

Mon, 10/31/2011 - 23:03 | 1830690 azusgm

And where is The Fab when needed?

Mon, 10/31/2011 - 22:05 | 1830525 penisouraus erecti

Maybe that bastion of integrity, and fellow Illinoisian like the prez, , Bill Daley, will take Corzines spot on the replace Geithner list.....

Mon, 10/31/2011 - 22:18 | 1830559 Rynak

Hint, don't spam too much and don't copy paste too many small posts, and don't pick "that" kind of usernames.... else people may think you're just "that guy" again.

Have a nice day!

Mon, 10/31/2011 - 23:01 | 1830685 dexter_morgan

Let me guess, you are a school teacher? Only they would be so condescending for no apparent reason.

Mon, 10/31/2011 - 23:19 | 1830713 Rynak

I have only one thing to say to you:

Idiot.

Okay, i'll say a bit more: Which longterm troll in this community, has a habbit of registering a dozen usernames, always posting only short posts in rapid-fire, often repeating himself, not being very creative, always picking unusual usernames and having a preference for roleplaying them?

Do i need to spell it out?

WilliamTheBastard.

Oh, and this "arrogant school teacher" over here, one page back also recognized someone who apparently forgot to change his username, and was copypasting nazi phrases from another account.

But yup, i'm sure there is no substance at all behind my allegations. No track record of revealing trolls too.

Mon, 10/31/2011 - 23:20 | 1830729 dexter_morgan

What in the fuck are you talking about? a LITTLE THERAPY MAY GO A LONG WAY FOR YOU MY FRIEND.

Mon, 10/31/2011 - 23:31 | 1830738 Rynak

You've got "The Axe" too in this thread by the way :) Another older account by him. The Axe according to himself, is working at "walstreet" (his repeated spelling, not mine) and is a millionare. That account of him became active at about the same time, as when he also posted under "wirtschaftswunder"..... in which he suddenly lived in germany being the boss of a company - also a millionare of course.

Tue, 11/01/2011 - 00:46 | 1830864 Rynak

Oh, and by the way - as for your confusion about how i could accuse him, even though what he is spamming in this thread isn't that different popular ZH opinion....

....i've got news for you:

You see, since you're a veteran on ZH, you know that the sockpuppets tend to recycle the same accounts over and over. And once you notice some username repeatedly doing it, well, you know its one of them.

You may in recent time not have kept track of them.

I did.

And this thread is full of them.

However, they are not argueing against ZH opinion here. What they are doing instead, is reinforcing the popular view: Nothing will happen. You are powerless.

At this point, you could start to think, look at the article and its contents... and then consider that the psyops feel the need to reinforce an opinion, that is already popular anyways!

Shit is hitting the fan.

Mon, 10/31/2011 - 22:06 | 1830529 euphoria

Isn't this what the FDIC is supposed to be used for?

Mon, 10/31/2011 - 22:42 | 1830626 bobert

Even if it were, they only have $3.9B in reserves.

Mon, 10/31/2011 - 22:10 | 1830540 redarrow

Some one going to jail? That day will never come unless the head of MF is either asian or some gupta or some marginal name like that. What the hell...moral hazard?....take that and smoke it. The Fed will see to that. If they can oversee the largest theft of sound money from its people, whats this? chump change.

Mon, 10/31/2011 - 22:11 | 1830543 JLee2027

CNBC today - Oct 31, 2011: MF Global is not a systemic threat to the financial system. 1:45 in

http://www.msnbc.msn.com/id/21134540/vp/45106865#45106865

Tue, 11/01/2011 - 05:32 | 1831044 TheFourthStooge-ing

CNBC internal memo:

Those MFers still owe us almost $900,000, so nobody is to utter a single negative word about them. Their stock is a great buy as soon as it resumes trading. Understand?

Mon, 10/31/2011 - 22:12 | 1830548 Town Crier

A more riveting piece of writing won't be found tonight.

Mon, 10/31/2011 - 22:15 | 1830556 TradingJoe

Former NJ Governor will walk away unharmed, hedge funds ala MFG will face gynormous, read bankrupting, redemptions, after that market will have the best Santa rally ever, or maybe not?!?!?

Mon, 10/31/2011 - 22:46 | 1830638 surf0766

No one could have foreseen this. Please pass the jellybeans

Mon, 10/31/2011 - 22:21 | 1830558 Cat On A Ledge

Aha! Not even the stark can resist the artistic bug!

Let's see a jailbirdy 'ere we get too uppity

Mon, 10/31/2011 - 22:18 | 1830564 BanksterSlayer

I smell a sequel to Margin Call .....

Mon, 10/31/2011 - 22:19 | 1830566 The Axe

Kill them alll..then let the Lord sort it out!

Mon, 10/31/2011 - 22:19 | 1830567 Schmuck Raker

Paging Mr. Bove...

Paging Mr. 'DICK' Bove.

Mon, 10/31/2011 - 22:24 | 1830581 Kiss My Iceland...

" ... until you have literally stolen hundreds of millions from the firm's client accounts"

No disrespect, but any client who was dumb enough to leave their money at MF Global over the weekend deserves to be wiped out.

Mon, 10/31/2011 - 22:27 | 1830571 virgilcaine

It must be the start of a major credit contraction . dick bovee was on blmbrg today sayng he could care less about mf..what a toolbag that guy is. He was stroking Blankfein and co like a champ.

Mon, 10/31/2011 - 22:30 | 1830598 disabledvet

"Dick"?

Mon, 10/31/2011 - 22:21 | 1830573 Catullus

"This is obviously an example of the racsist republican conspiracy to cause a run on the banks via deregulation and hyperventilation over inflation because of Obama inadequate stimulus program." -- Paul Krugman's macro for "moral hazzard" responses.

Mon, 10/31/2011 - 22:25 | 1830580 nothing can go wrogn

Nice writing TD! Those last two paragraphs were right on the money...er...wait? Where's the money? Why isn't Corzine answering his cell phone? Something's not right here. I can't login to my MF global account?

Mon, 10/31/2011 - 22:36 | 1830612 disabledvet

wasn't there a guy just on this site talkin' about "i've got money in that thing"? i think the response was "there's no co-mingling so you're good" as i recall.

Mon, 10/31/2011 - 22:36 | 1830583 KIPPY KAPPSLOCK

Fuck Jail. Put this fucking maggots head in a noose. I'd like to make him suck my dick while his family looks on. Perhaps shine my shoes with the ropes of saliva dripping off his chin. Would that make me gay? Thank the goodness that I've been stacking for so long, otherwise I'd be really pissed.

Mon, 10/31/2011 - 22:25 | 1830585 hadriansnightmare

Great article- right up to the point where somone has to go to jail- Corzine is the worst- I think he needs to be promoted to Sec of the Treasury.

Mon, 10/31/2011 - 22:27 | 1830586 Cameli

Yup....it's gotta be one of these fuckin clients. Can you believe these vicious bastards gave a lot of dough to MF and tempted Corzine to loot it? It's not right I tell you...spare a thought for poor Jon.

Mon, 10/31/2011 - 22:27 | 1830588 Van Halen

How do they move against Corzine? After all, he's one of the biggest bundlers for Obama. Not being sarcastic here. Think about this. Will be interesting to watch. Most likely, it will be buried beneath news of Kim Kardashian's divorce.

Mon, 10/31/2011 - 22:29 | 1830595 Van Halen

Let me try to answer my own question. Right now the Left are frantically searching for any Republican they can find who might have ties to this disaster. It won't take long.

Mon, 10/31/2011 - 23:18 | 1830723 dexter_morgan

Herman Cain did it...yeah, thats the ticket.

Tue, 11/01/2011 - 02:35 | 1830970 Freddie

This is a BIG deal and I hear you. Supposedly Corzine grabbed client money ($700 million) to try to save his big trade. This NEVER happens. Bear Stearns, Lehman, Merrill - they went down in flames but they never touched client money. It is never done by a brokerage firm. Pre-2008 and Obama when we had some form of laws - it was go directly to jail for 20 years if you did what it sounds like what Corzine did.

http://www.nypost.com/p/news/business/political_suicide_qCVtUTzdyDpn6Ndsb070zM

Mon, 10/31/2011 - 22:29 | 1830596 dizzyfingers

MF Global...

M effer?

M effing?

something else?

Mon, 10/31/2011 - 22:30 | 1830599 rawsienna

Inside scoop on Corzine was that he is not that bright who happened to be in the right place at the right time.

Mon, 10/31/2011 - 22:37 | 1830614 Bansters-in-my-...

So does this mean Jon's bonus gets increased...?

Mon, 10/31/2011 - 22:38 | 1830619 gwar5

Things that make you go Hmmm.....

The apparatus of the State is subduing the populous with TSA groping, internet monitoring, GPS tracking, and snitch sites, while the MSM is giving us lullabies. Meanwhile, the Wall Street cops are helping TPTB loot the banks in plain sight.

Think about all that for a second.... Obama is covering for these people so they can strip mine everything. Pretty strange, since the Chairman of the Joint Chiefs has already said, on two separate occassions, that the greatest security risk to the USA is our economic condition. We won't make it to the next election.

Tue, 11/01/2011 - 02:37 | 1830971 Freddie

Blame idiots who watch TV who enable these people. If everyone yanked the plug on TV - they would lose their power. The public is stupid.

Mon, 10/31/2011 - 22:39 | 1830622 zeroman

Tyler;

To answer your question as to whether someone will go to jail. I think you know the answer. A low level dork will get indicted and that is all we will see. the elite hold the cards, period

Mon, 10/31/2011 - 22:44 | 1830634 gwar5

Just wanted to take the time to thank all the Tylers and ZH. There have been many zig and zags with the ongoing Euro drama but ZH has been two steps ahead of each and every one of them. That really takes some doing. I don't know how you do it.

Thank you from what is left of the free world for your service to humanity!

Mon, 10/31/2011 - 22:45 | 1830635 Atomizer

The mailroom clerk will take the fall.. Honestly, it all comes back to the DOE solar loans. Grab your popcorn.

Mon, 10/31/2011 - 22:49 | 1830644 Poule Mouillee

Nobody needs to go to jail if the clients agree that it's a voluntary haircut.

Tue, 11/01/2011 - 02:10 | 1830943 plantigrade

and they could get free aftershave too

Mon, 10/31/2011 - 22:50 | 1830647 ISEEIT

I'll tell you Corzines deal. He was the ultimate 'prettyboy' of the modern left. He was the insiders insider. The guy was connected to the hilt. A Keynesian player who truly believed he was magic.

He had a cult following going into the 08 election that he against reasonable odds lost.

He trashed N.J. for the sake of 'progressive' causes and after getting his ass kicked decided in hubris to 'play the game' at another level.

Piece of shit is flushed now but what he knows is dangerous.

This guy gets Wedding invites from the top mafia of the progressive movement.

Taking him down will be hilarious.

Suicide is likely.

Mon, 10/31/2011 - 23:20 | 1830728 azusgm

...or he could have his children call the FBI and turn him in. Until his court date, he could be at home under house arrest with .gov and private armed guards. Then he could go before the judge and plead guilty so that he never would have to talk. He could then live out the rest of his life in Club Fed protected from the disgruntled 1% at the taxpayers' expense.

Tue, 11/01/2011 - 02:49 | 1830977 Uber Vandal

....or, he could pull a "Kenny Lay".

Dies before sentencing while on vacation in a remote area, is cremated (no body), ashes scattered / hidden in a "secret location", and his conviction is vacated.

Tue, 11/01/2011 - 05:21 | 1831040 Raging Debate

That is my guess as well. An unfortunate smelting accident will befall him.

Mon, 10/31/2011 - 22:51 | 1830653 quacker

Forget not Dodd-Frank in all this. It is the wild card that did not exist last time. If the senario you paint of customers pulling out of other houses causes a chain effect, that is a huge risk to the ponzi, and Timmy can snatch them up with no due process and pump them full of benocide bucks.

Totally different than last time.

Mon, 10/31/2011 - 22:55 | 1830661 bsdetector

I don't know if Corzine is dirty or whether there are humans responsible for the failures at MF but my mind is creating images of lots of government employees in blue windbreakers with big yellow lettering on the back going in and out of MF Global offices, carting boxes full of evidence to waiting trucks. Then there is the image of the warehouse in one of those Harrison Ford movies where they stored the Arc of the Covenant. Yep, that is where the MF Global materials will go. Too bad too because if our government really wanted to restore some faith in the financial system it would be out there making the perps walk. And the prosecutions would be open and public, not shielded from view as they usually are. But those are just visions, no reality there.

Mon, 10/31/2011 - 22:57 | 1830668 penisouraus erecti

evidence? wouldn't most of it have been shredded by now?

Mon, 10/31/2011 - 22:55 | 1830663 israhole

Jews gone wild!

Mon, 10/31/2011 - 22:57 | 1830664 awkward squad

Meanwhile, not a word of all this trouble in the Hebrew press. It's boomtime in the Land of Milk and Honey. Smart move by the Jews to position themselves so close to all that oil. Nobody's gonna get hurt in Israel when the missiles start flying. So long, dumb goyim:)

Mon, 10/31/2011 - 23:16 | 1830712 dolph9

Good luck Israel when they have to contend with 300 million pissed off Arabs.

Message to the Jews out there: you aren't going to get this gentile to fight for Israel, no fucking way.

Mon, 10/31/2011 - 23:35 | 1830757 awkward squad

The Arabs will roll over like the goyim did, satiated on a rich diet of pornography and credit. Don't worry about the Arabs. They're our cousins; we know what makes them tick

Mon, 10/31/2011 - 23:22 | 1830734 quacker

The first known mention of Israel outside the Bible is from some Eqyptian records dating about 1200 B.C.E. That first nation existed until the first cenury A.D. (disbanded by the Romans) though a small contingent of Jews remained

So it's a very long and ancient history on that land. Doesn't sound plausible that prior to 1200 B.C.E they had the foresight to pick that spot because of oil.

Maybe they picked it just to piss you off. Seems to have worked.

Mon, 10/31/2011 - 23:29 | 1830747 awkward squad

But by 1947 they had a pretty shrewd idea about the future of energy/resources, I'd guess. Otherwise they could have accepted the Madagascaar option, or Russia, or somewhere.

Tue, 11/01/2011 - 00:05 | 1830815 quacker

Jews in Madagascar? You'll never get Armageddon off the ground that way.

Mon, 10/31/2011 - 23:58 | 1830799 Outlaw Of The W...

and now they are a sociopathic race cult of converted outcast atheist russians and pollock scum.

everyone knows.

jews are a crime syndicate masquerading as a religion.

hitler was right

Mon, 10/31/2011 - 23:00 | 1830680 Malachi Constant

Someone is going to jail

Not really, if they shared with all the right people.

Mon, 10/31/2011 - 23:01 | 1830683 Westcoastliberal

Right now on KC's Coast to coast, claiming the number seven spot on the all-time bankruptcy countdown is MF Global with their big hit "Ain't gonna pay no more". Let's hear it!

Really guys, this may be the Lehman event we Bears have been expecting. Haven't heard about and CDS exposure directly on this; anyone got a clue?

Anyway I'm sure Bernanke is up late tonight greasing the helicopter.

If you agree with me that collapse is becoming unavoidable, don't despair, prepare! http://www.collapsenet.com/262.html

Mon, 10/31/2011 - 23:44 | 1830772 c'mon man

Is this MCR?

Mon, 10/31/2011 - 23:01 | 1830686 Fix It Again Timmy

Corzine's only crime - getting caught; and that's a misdemeanor in today's environment. But will that change and what would change it?

Mon, 10/31/2011 - 23:06 | 1830694 dexter_morgan

So what's the timeline for all this shaking out in anyones opinion? Or will it get buried somehow?

Mon, 10/31/2011 - 23:07 | 1830701 dark pools of soros

any remaining regulations are just transitory

Mon, 10/31/2011 - 23:09 | 1830704 Forgiven

The SEC really can't be bothered with these acts of blatant theft. Can't you see they're too busy visiting this site between jacking to porn on the .gov PCs?!

Mon, 10/31/2011 - 23:10 | 1830706 ziggy59

A Squids head= a horses head. This seems to be a warning, IMO, by the leaders of the PACK that more heads will roll, unless, and like all previous handshakes signed deals(think Saddam, Osama, and Ghadafi) with the Devil, your contract can be cancelled when they say so.

Mon, 10/31/2011 - 23:17 | 1830720 awkward squad

What we need is some kind of World Court, perhaps based in Jerusalem, where all this sort of nonsense could be thrashed out by earnest, rational Jews. After all, they are your Mom and Dad. It's their house and as long as you're under their roof you're gonna abide by their rules.....seriously though, I think at this point the only solution is for all the World's non-jews to commit suicide, leaving a note to the Chosen that says: 'It's your World. You can have it.' That would put them in a bind.

Mon, 10/31/2011 - 23:20 | 1830730 Rob Jones

Has anyone tried looking under the sofa cushions?

That seemed to work pretty well for Hypo Real Estate in Germany. They just found 78 bn euro.

Mon, 10/31/2011 - 23:23 | 1830735 williambanzai7

This artist still has his professional nose for corporate horse shit and the needle fell off the meter on Saturday.

Mon, 10/31/2011 - 23:23 | 1830736 bill1102inf

HAHAHHAHAHAHAHAHAHAAHHAHAHA

HAHAHAHAHAHAHHAHaHAHahhAHAHAHAHAHAHA

AHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAHA

AHAHAHAAHAHHAHAHAAHAHAHHAHAHAHAHAHAHAHAHAhAH

AHAHAHAHAAHAHHAHAHAHAHAAHHHAAHAHAHHAAHAHHAHAHHAAHAHHAHAHA

Mon, 10/31/2011 - 23:32 | 1830753 lizzy36

Corzine made a leveraged bet on TBTF.

And then got desperate.

But we all know consequences are for little people.

Confidence in the system. What an oxymoronic thought!

Mon, 10/31/2011 - 23:37 | 1830760 honestann

Hang all perps.
Hang all regulators (perp collaborators).
Hang all executives in large financial organizations.

That's just a very modest start on what needs to happen.

Mon, 10/31/2011 - 23:38 | 1830762 caerus

GMCR will go to 40...

trick or treat

Mon, 10/31/2011 - 23:38 | 1830763 prophet

Wall Street has not fallen to a new low it started out there.

Mon, 10/31/2011 - 23:41 | 1830766 blindman

October 31, 2011, 11:33 AM ET
.
MF Global: History From IPO to Bankruptcy
.
By Jacob Bunge

Financial firm MF Global today filed for bankruptcy protection, after a failed weekend effort to find a buyer. The Chapter 11 filing puts an embarrassing capstone on the company’s short history, which started as a spinoff of U.K. hedge-fund firm Man Financial.

Here is a look at MF Global’s history:

July 2007: Man Financial, the brokerage division of U.K. hedge fund manager Man Group plc, is spun off in an initial public offering at the height of the boom in derivatives trading and renamed MF Global.

February 2008: A trader in MF Global’s Memphis, Tenn. office sustains a $141.5 million loss after making unauthorized wheat trades, sending shares down 28%.

May 2008: Private equity firm J.C. Flowers gained a position in the firm when it agreed to help MF Global refinance its debt, and received two seats on the firm’s board.

October 2008: Bernard Dan, former CEO of the Chicago Board of Trade, takes over as MF Global’s CEO, vowing to rebuild the way it manages risk.

November 2009: MF Global relocates its corporate base to the U.S. from Bermuda as Washington planned an overhaul of the domestic derivatives industry.

March 2010: Jon Corzine is named Chairman and CEO, two months after leaving office as governor of New Jersey, as Dan departs for personal reasons.

August 2010: Corzine steers MF Global to its first profit in 18 months thanks to cost cutting and an overall rise in trading activity.

August 2011: Regulators ordered MF Global to boost its net capital amid their concerns about the company’s exposure to European debt.

February 2011: Corzine lays out plan to evolve MF Global into an investment bank within five years.

Oct. 24, 2011: Moody’s cut its debt rating on MF Global to own notch above junk-bond status. Moody’s cited MF Global’s appetite for risk and concerns about its exposure to European government debt.

Oct. 25, 2011: MF Global reports a wider loss for its fiscal second quarter ended Sept. 30. The disclosure of the financial results, which were pushed out early in the wake of the Moody’s downgrade, helped spark a 48% stock drop that day. By the end of the week, MF Global had lost more than two-thirds of its market value.

Oct. 31, 2011: MF Global filed for bankruptcy protection, after a weekend of negotiations failed to lead to a sale of at least part of the company.

Mon, 10/31/2011 - 23:42 | 1830768 Ralph Spoilsport

The disinfo media machine is programming the right wing talking heads to deflect all blame from the Banksters and onto Obama. If you can stand it, check out that annoying and whiny Mark Levin asshole who won't let any caller say anything about his CronyCap heroes. Reading from his freshly faxed talking points from the GOP, anyone who says anything bad about the TBTF banks is automagically a commie and a Marxist. Somehow it's all the fault of the demoncrats. Both parties have engineered this mess but listening to Levin is like a stereo that only has a functional "right" channel. This kind of noise on the signal is hiding the real program material which the public needs to hear if we're ever going to get anywhere towards jailing these fucktards.

I can't wait to hear how these drones try and spin this latest fucking disaster involving a Primary Dealer. They'll defend the Squid and the Goldfinger Sacks crowd to the end because their capitalists and that was good enough for their hero Ronny Raygun.

It's morning in America all over again . Jesus jumping Keerist!!!

Tue, 11/01/2011 - 00:44 | 1830875 Bazza McKenzie

Yeh and that Corzine, wasn't he the Republican Governor of New Jersey? . . . wait, that can't be right, Christie is now NJ Governor and he's a Republican and he beat Corzine. So that makes Corzine, what, a Democrat? Oh my God! A Democrat mixed up in ripping off customers. It can't be. I thought Maddoff was a fluke and now we've got another one.

Geez, and wasn't Obama considering him to replace TurboTax Timmy? Probably a bit harder in this climate to brush over illegally ripping off your customers for $700million than just being TurboTax-challenged, even if you are a big wheel Democrat.

Tue, 11/01/2011 - 02:48 | 1830976 Freddie

I really cannot believe this story. A brokerage firm in a hugely bad trade, initiated suppoedly by Corzine, steals $700 million in client money to "save" the trade?? This never happens because the second you touch client funds with a brokerage - it is game over. Well it was pre-2008 when we still have some laws. Corzine would get 20 years if we still had laws that were enforced. Amazing.

Mon, 10/31/2011 - 23:49 | 1830783 prophet

Four days prior to the biggest G-20 yet. How convenient. Corzine should get the Nobel in Physics. At least the money went missing and did not get lost. Expect both a prod and a wink and a nod from the fed to the G-20.

Someone Is Going To Jail For This: MF Global Caught Stealing Hundreds Of Millions From Customers?

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