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Who Gave Permission To A Bankrupt MF Global To Sell Italian Bonds To JPM At A 5% Discount To Market Value?

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Tue, 12/13/2011 - 15:05 | 1975087 Catullus
Catullus's picture

Will a couple of "i'm sorry" and "I'm not an expert on bankruptcy law" make this all go away? Because I know just the CEO to slick back his hair and arrogantly blow hot air up your ass

Tue, 12/13/2011 - 15:08 | 1975105 Silver Bug
Silver Bug's picture

The corruption runs deep, they have infiltrated almost every element of governement, the day will come although where they are held accountable for what they have done. Sadly I believe it is still a few years away.



Tue, 12/13/2011 - 15:19 | 1975154 Popo
Popo's picture

There's a word for misappropriating funds from a company (or estate) you work for:  EMBEZZLEMENT.

That's what this is.  Plain and simple EMBEZZLEMENT.

The co-mingling funds argument absolutely does not stand up post-bankruptcy.   This was theft.


Tue, 12/13/2011 - 15:23 | 1975206 Poetic injustice
Poetic injustice's picture

Please, please. Don't mix up laws written for serfs and laws written for those who have ascended.
Simple "I am sorry" is maximum sentence that those holy beings should be punished with.

Tue, 12/13/2011 - 15:32 | 1975249 King_of_simpletons
King_of_simpletons's picture

// who gave permission ..... ? //

This is Wall Street. They are doing God's work and they are above petty things like government and rule of law. They can plead the "FIF" and get away with murder. All they need to make sure is the current president's coffers is flush with election dollahs.

Tue, 12/13/2011 - 15:47 | 1975330 redpill
redpill's picture

I've listened to a good amount of these hearings, and I'm surprised none of the Senators ask them how many people in the company would even have the ability to transfer that much money in client funds.  It can't be that big of a list.

Tue, 12/13/2011 - 17:29 | 1975854 hannah
hannah's picture

i know for a FACT that the night janitor transfered $5bil from an account.....corzine is innocent!

Tue, 12/13/2011 - 18:21 | 1976176 hidingfromhelis
hidingfromhelis's picture

The way this is being whitwashed and delayed, and the fact that real crimes aren't being seriously investigated, I don't even think it's going to get to the point where we get the "few bad apples" excuse.  It won't even be necessary.

Tue, 12/13/2011 - 23:04 | 1977155 Real Money Wins
Real Money Wins's picture

As Captain Jack Sparrow would say "I'm having a thought Here!"

"What if they did a clawback on the purchase of the Italian bonds from JPM at a fair market value of say 96 cents!

 Sounds Fair to me."

And Barbossa says "Ah But Jack thats what lost ye yer money in the first place.

Companies are easier to steal from when their dead!"

Tue, 12/13/2011 - 15:35 | 1975277 narnia
narnia's picture

Fraudulent Conveyance: a transfer of property that is made to swindle, hinder, or delay a creditor, or to put such property beyond his or her reach.

Tue, 12/13/2011 - 20:52 | 1976743 mkkby
mkkby's picture

Claw it back, baby.  Claw the muther fucker back.

Wed, 12/14/2011 - 00:55 | 1977535 Buck Johnson
Buck Johnson's picture

Our financial system is so corrupt and dysfunctional that the only way to fix it is to let it all implode and rebuild it again.

Tue, 12/13/2011 - 15:14 | 1975127 Elwood P Suggins
Elwood P Suggins's picture

Ask Corzine - why?  It'll just be more of the Clinton defense - don't remember, can't recall.  Hillary and Billary taught all these radical left wing Democrats how it's done.

Tue, 12/13/2011 - 15:20 | 1975146 Dr. Acula
Dr. Acula's picture

If he knows jack shit, you must acquit!

Tue, 12/13/2011 - 15:13 | 1975128 bigdumbnugly
bigdumbnugly's picture

permission?  we don't need no stinkin permission.

Tue, 12/13/2011 - 15:25 | 1975187 vast-dom
vast-dom's picture

Tyler et. al allow me to obvious in the face of general tonal naïveté of this article: the entire bond market operates under these preferential discounts -- this is how bond dealers function to date and the only difference here is there was a "seeming" dump in the face of insolvency. The keyword "dump" because if you tracked any bond dealer you'd see these kinds of "discounts" all day every day akin to congress legally insider trading. The profits come as insider multi-tiered discounts between "insider" traders and then end-purchaser ultimately scavenges and hopefully justifies the price differentials and junk bond insolvent product. But WTF do i know?

Tue, 12/13/2011 - 15:33 | 1975270 MsCreant
MsCreant's picture

If I hear that the money went to pay off folks who had funds on account with them that were co-mingled, I could at least understand it, they are trying to pay back what they should, first. Other wise NO, NO, NO, NO, NO, NO! 

Tue, 12/13/2011 - 15:06 | 1975088 oogs66
oogs66's picture

Money for nothing! And at that is some serious money!

Tue, 12/13/2011 - 15:06 | 1975089 YesWeKahn
YesWeKahn's picture


Tue, 12/13/2011 - 15:06 | 1975091 NOTW777
NOTW777's picture

if it was after BK filing and w/o court permission it is subject to being set aside and or the subject of contempt

Wed, 12/14/2011 - 00:18 | 1977441 Real Estate Geek
Real Estate Geek's picture

Hell hath no fury like a scorned Federal judge . . . especially if it's a she.

Tue, 12/13/2011 - 15:06 | 1975094 knight99
knight99's picture

im so fking numb to the corruption. The corrupt politicians are going to tell the corrupt banksters what to do. WTF is going on

Tue, 12/13/2011 - 15:06 | 1975095 DarkestPhoenix
DarkestPhoenix's picture

Clawback, bitchez!

Tue, 12/13/2011 - 15:06 | 1975098 GeneMarchbanks
GeneMarchbanks's picture

Was he asked about this?

Tue, 12/13/2011 - 15:06 | 1975099 oogs66
oogs66's picture

300 million bitchez

Tue, 12/13/2011 - 15:07 | 1975102 My Taint
My Taint's picture

Small haircut. Nothing to see here. Move along.

Tue, 12/13/2011 - 15:53 | 1975356 A Man without Q...
A Man without Qualities's picture

Exactly - the salesforce covering MFG realized there would be only limited business going forward and, well, they need to hit their revenue targets.   

I remember an incident with one of the client coverage guys on a very similar entity which collapsed owing to insolvency issues.  He laughed as he told me how he'd taken a huge margin for the unwinds and the client had been angry but "there was nothing he could do" - this is the ugly truth about the way it works and the unethical nature of investment banks...

Tue, 12/13/2011 - 15:08 | 1975103 silverserfer
silverserfer's picture


Hello ma'am how may i help you today?

Tue, 12/13/2011 - 15:07 | 1975104 tmosley
tmosley's picture

No rule of law what-so-ever.

Banana Republic of America.

Tue, 12/13/2011 - 16:04 | 1975439 tarsubil
tarsubil's picture

I will call it Costaguana. Man, a banana republic is normal. A free republic, equal protection under the law, upholding of contracts, that is abnormal. It was fun while it lasted.

Tue, 12/13/2011 - 15:08 | 1975106 Everybodys All ...
Everybodys All American's picture

Might I presume that this goes to the highest levels of government. Not much of a stretch is it? Would not this be called quid pro quo until you get called on it and then it's called RICO.

Tue, 12/13/2011 - 15:09 | 1975108 MFL8240
MFL8240's picture

The TRIBE led by the Scumbag Soros and JP Morgan insider Dimon do whatever the fuck they want and if you dont like it than tough shit.

Tue, 12/13/2011 - 16:24 | 1975525 NotApplicable
NotApplicable's picture

So... I generated a Scumbag Soros meme template, but cannot get it captioned due to an error message.

Here's the pic


My caption:


5% BELOW RETAIL (bottom)

But alas, my memegenerator fu is weak. :( (as are my MS Paint skillz)

Wed, 12/14/2011 - 14:27 | 1979590 combatsnoopy
combatsnoopy's picture

Corzine knows nothing! NADA. 

Just add Corzine and Soros' name to the mix and the "GOP" finally gets it's panties in a bunch over the greatest financial scandal in the history of the world... the CFTC under Wendy Graham, a NEOCON btw. and Rubin and Summers and Gensler- all part of this crime spree! Where was the GOP then? What did they think was gonna happen when you condone a crime? It keeps happening! This is partisan politics stalling necessary justice to return any integrity to the U.S. markets and a HUGE obstacle to economic recovery.  Bush and his clique condoned this scandal along with the S&L Crisis.  I'm NOT condoning Obama and Corzine, but the GOP and the Clinton crew needs to own up here as well.  Playing politics is for dummies. 

The courts have been doing nothing since 2003 (and before) about these crimes.  Why would Soros miss out?  

http://www.dandodiary.com/ 2010/06/articles/subprime-litigation/an-updated-analysis-of-subprime-securities-suit-dismissal-motions/


***On Judge Levine's first week on the job, nearly twenty years ago, he came into my office and stated that he had promised Wendy Gramm, then Chairwoman of the Commission, that we would never rule in a complainant's favor.***
A review of his rulings will confirm that he has fulfilled his vow. Judge Levine, in the cynical guise of enforcing the rules, forces pro se complaints to run a hostile procedural gauntlet until they lose hope, and either withdraw their complaint or settle for a pittance, regardless of the merits of the case"***

Tue, 12/13/2011 - 15:09 | 1975109 wandstrasse
wandstrasse's picture

now THAT has style: to buy bonds of bankrupt state from a bankrupt company with crony discount...

Tue, 12/13/2011 - 15:10 | 1975114 rawsienna
rawsienna's picture

ACtiually - If true, they buyer may not "own" the bonds.  Unless of cousre it is Soros then breaking the rules will not matter. 


Tue, 12/13/2011 - 15:10 | 1975115 dexter_morgan
dexter_morgan's picture

That's good since Soros could use the discount savings to further his pro-America agenda no doubt.

Tue, 12/13/2011 - 15:12 | 1975122 IrritableBowels
Tue, 12/13/2011 - 15:35 | 1975279 MsCreant
MsCreant's picture

Tyler put up a thread on this.

Tue, 12/13/2011 - 20:04 | 1976569 Melin
Melin's picture

Congress fails to understand the market.  Go figure.

Tue, 12/13/2011 - 15:12 | 1975123 Eagle1
Eagle1's picture

It is called "flipping" in the Street. A quick profit for your friends and family at Christmas

Tue, 12/13/2011 - 15:12 | 1975125 PulauHantu29
PulauHantu29's picture

MF Clients better stock up on KY...lots of it.

Tue, 12/13/2011 - 15:15 | 1975134 Dr. Acula
Tue, 12/13/2011 - 15:53 | 1975359 rawsienna
rawsienna's picture

if story is true than trade did not happen.  Bankruptcy judge will rip itup

Tue, 12/13/2011 - 15:16 | 1975142 AldoHux_IV
AldoHux_IV's picture

And that's where the so-called good collateral winds up, like in 3 card monte, you think you know where the money is but it isn't until laws are broken, and shady back door deals are made that you find out that the money was literally stolen via liquidating sales.

This should implicate many people who should go to jail for outright theft, fraud, etc. How far it goes and how much justice will be served will be a function of how much ignorance there is amongst the general public.

The fed, banks, prime brokers, central banks, and broker dealers have engaged in some serious fraud that if genocidal policies like further stimulus (which will do nothing to stem the reversion to the mean in asset prices) won't do them in, this certainly will.



Tue, 12/13/2011 - 15:16 | 1975148 YesWeKahn
YesWeKahn's picture

no QE, no QE, no QE.

Tue, 12/13/2011 - 15:17 | 1975153 XitSam
XitSam's picture

"- this is flaunting bankruptcy law front and center."

These are bankers, the law doesn't apply to them.

Tue, 12/13/2011 - 15:21 | 1975179 PMakoi
PMakoi's picture

Really, what strikes me awfully hard, is that just before giving testimony, Corzine is asked to raise his hand and swear an oath to tell the "whole truth".  Farce, and the I never meant to hurt anyone or do anything illegal is completely lame.  Why doesn't he just tell the most truth and say, "I thought I could get away with it."

Tue, 12/13/2011 - 15:22 | 1975192 PMakoi
PMakoi's picture

and, please... when will some young Congressional aide walk through the scene and knock over that idiotic "honorable" sign???

Tue, 12/13/2011 - 15:30 | 1975252 JLee2027
JLee2027's picture

In today's day and age, Honorable = Despicable

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