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Getbig Main Boards => Politics and Political Issues Board => Topic started by: Soul Crusher on November 16, 2011, 04:42:11 AM
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http://www.infowars.com/gerald-celentes-gold-account-was-emptied-by-mf-global
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LOL @ trusting "them" to hold your gold.
Buy it physical, bury it in your yard, then mine your yard so anybody doing any digging gets blown sky high.
I can't imaging rallying all day about how bad an agency is, then trusting them to hold your precious metals.
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http://twitter.com/#!/geraldcelente/status/135086033044901888
Gerald might be calling the boys.
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[ Invalid YouTube link ]
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Does anyone think Corzine will do the right thing and pay the 1100 people fired as a result of his theft?
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http://compliancesearch.com/compliancex/current-affairs/1066-mf-global-employees-fired-due-to-mf-jon-corzine%E2%80%99s-ego-and-risk-taking/
Today marks the end of MF Global.
Two hundred and thirty years after its founding, all 1,066 employees were fired.
MF Global, until recently, was a 230 year old global firm, a member of over 70 financial exchanges, one of the largest brokers by volume of executed or cleared transactions on futures and derivatives and a primary dealer in US Treasury securities.
Then along came Jon Corzine.
Corzine was appointed CEO through his long-term Goldman Sachs friendship with JC Flowers, whose private equity firm was a major owner of MF Global.
It didn’t seem an issue to his buddy from their Goldman days together that while Jon appeared to the world as a rumpled, bearded, professorial-looking, friendly uncle type he was really an ambitious, ruthless risk taker.
The following few examples illustrate just how much of a risk taker Jon Corzine is in nearly all aspects of his life.
He was blamed by many for causing Goldman Sachs to incur large trading losses in 1994 and ultimately forced out by his rival Henry Paulson.
While Governor of New Jersey, Corzine was in a nasty car accident that put him in the hospital. He had his driver speeding at over 90 miles an hour and was not wearing a safety belt.
Also during his tenure as the Governor of New Jersey, within weeks of his divorce from his wife of 33 years, Corzine was in a relationship with the President of the Communications Workers of America Local 1034, a union that represents nearly half of all New Jersey state employees. The relationship ended with Governor Corzine paying her millions of dollars.
The mundane world of MF Global, which relied upon the non-glamorous business of earning lots of small commissions from executing and clearing trades and collecting interest from cash collateral received from clients, was not sufficiently exciting and sexy enough for him.
Mr. Corzine announced to the world that he was going to create a mini Goldman Sachs. A firm that would rely on aggressive trading to make huge profits.
Unfortunately, given MF’s history of serving as a middle-man executing and clearing trades, it did not have the infrastructure and risk management systems anywhere near the level of Goldman’s.
Corzine wanted to “take advantage of dislocations” in the sovereign debt market by buying what it saw as relatively low risk paper.
He aggressively pushed his traders to purchase over $6 billion of European sovereign debt from some of the euro zone’s troubled countries, including Italy, Spain, Portugal, Ireland and Belgium.
This exposure was enormous — equal to about five times the company’s net worth.
The risk taking may have been in his blood, or maybe it was the incentive to personally benefit from the 2.5 million options he received as a signing bonus, the MF Global stock he bought in the open market or his need for redemption after getting kicked out of Goldman and the Governor’s Mansion.
Whatever the motivations, the outcome was clear. The trade – monster purchases of European debt (primarily Greece and Italy’s) – performed horribly. The wrong-way bet blew up the 230 year old company.
Employees were fired without warning.
To add insult to injury this is one of the worst job markets in recent history for Wall Street professionals.
The firings come as the bankruptcy trustee, James Giddens, diligently works to find $600 million in missing customer money.
Federal agencies, including the CFTC, SEC and the Department of Justice, are investigating whether the money missing from customer accounts may have been improperly mixed with the firm’s funds.
Meanwhile Corzine retained a top lawyer and professed that he would not accept over $9 million in severance pay. And that is just the problem: he had nothing to lose and everything to gain. With a signing bonus of 2.5 million options, Corzine could have cleaned house with a few bold (lucky?) investments. If things had turned south he had even less than nothing to lose; he had a $9 million severance package on standby. Let’s wait and see if he sticks to his word by keeping his hand out of the $9 million cookie jar.
This raises an even bigger question. Clearly Mr. Corzine has a faulty ethics compass, to say the least, but there are some institutional forces at play in his decisions to take risks. To what extent were his actions purely reflective of his own personal greed and lack of morals and to what extent were they products of a system that incentivizes blind, risk-taking behaviors? Though, this is a question for a whole separate article.
Focusing on Jon Corzine for the time being, the situation could have been worse. As a former democratic governor and large donator to democratic races, Mr. Corzine was considered a top contender for Treasury Secretary of the United States.
While it is dreadful what happened to MF Global, imagine what he would have done as the Treasury Secretary of the United States of America.
Jack Kelly is a contributing writer and Publisher of CompliancEX.
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Wow, how generous of him to give up the 9 million after sinking the company. ::)
I don't know enough about this, but it's sounding like this guy isn't going to jail, isn't going to be penalized, isn't going to make restitution.
Sounds like he's getting a walk.
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Hahaha, so the guy who makes his living bashing the shit out of Wall St. and the Fed was playing the leverage game and got caught with his pants down trying to make a killing before taking physical delivery. Lesson learned, eh Gerald?
Wow, how generous of him to give up the 9 million after sinking the company. ::)
I don't know enough about this, but it's sounding like this guy isn't going to jail, isn't going to be penalized, isn't going to make restitution.
Sounds like he's getting a walk.
He's way too connected to go to jail.
They still haven't found the $600+ million that disappeared.
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What a mess...ME thinks when this event is settles it will be worse than 2008. Some older traders i knew many moons ago had full service accounts at Lind Waldock...I sure hope they closed there accounts once the company was sold to Corzine.
Where the fuck is Corzine. You don't fuck with customers accounts..I hope the fucker spends the rest of his life in jail..
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What a mess...ME thinks when this event is settles it will be worse than 2008. Some older traders i knew many moons ago had full service accounts at Lind Waldock...I sure hope they closed there accounts once the company was sold to Corzine.
Where the fuck is Corzine. You don't fuck with customers accounts..I hope the fucker spends the rest of his life in jail..
Corzine is raising and bundling money for Obama and hosting parties for him at 35k a head.
Great piece of fucking shit POTUS we have.
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Yet we have to be civil with Obama supporters....its like being civil with former Hitler youth if you're a Jew.
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Yet we have to be civil with Obama supporters....its like being civil with former Hitler youth if you're a Jew.
Obama Admn is nothing but a mafia crime family. The supporters of this crime syndicite needs to beaten mercilessly.
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http://compliancex.com/mf-global-report-blames-corzine/?goback=%2Egde_865117_member_229632686
MF Global report blames Corzine
Jon Corzine helped bring down MF Global with a dangerous trading strategy and inadequate risk controls, according to the court-appointed trustee to the collapsed brokerage’s bankruptcy.
Mr Corzine, the former chief executive of Goldman Sachs who ran MF Global from March 2010 to its failure in October 2011, embarked on a “risky business strategy” of betting on European government debt and ignored “glaring deficiencies” in controls, found Louis Freeh, the trustee.
Unusually for a chief executive, Mr Corzine executed some of the trades personally, “even placing trades in the middle of meetings”, Mr Freeh found.
In a report to the court, he wrote that “negligent conduct” perpetrated by the collapsed brokerage’s management contributed to the company’s 2011 failure, in which about $1bn of customers’ money went missing.
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My understanding is that the segregated funds were rehypothecated (put up as collateral) to JP Morgan.
JP Morgan is offering customers immediate settlement of their claims for 25 cents on the dollar, and of course they don't have a problem speculating this way because by the time the paper trail is actually followed, they will find the funds in JP Morgan accounts.
JP Morgan requested 3 X's for Corzine to sign off that the funds he was transferring to JP Morgan was NOT segregated client funds. He refused to do so, ...and they accepted it anyway.
Next, they'll be coming for your bank accounts, and private & public pensions as well.
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http://www.infowars.com/gerald-celentes-gold-account-was-emptied-by-mf-global
333386 is a InfoWars follower. ::)
Obtain psychotherapy yet ?
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333386 is a InfoWars follower. ::)
Obtain psychotherapy yet ?
Hi benny.
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I think I need to see this movie.
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http://www.reuters.com/article/2013/11/12/mfglobal-lawsuit-idUSL2N0IX1HL20131112
UPDATE 2-Corzine, banks fail to win dismissal of MF Global lawsuit
NEW YORK, Nov 12 (Reuters) - A federal judge on Tuesday rejected a bid by former MF Global Holdings Ltd chief executive Jon Corzine to dismiss investor litigation seeking to hold him, other executives and many banks responsible for the futures brokerage's rapid collapse.
In a sometimes acerbic decision that likened MF Global's demise to a "massive train wreck," U.S. District Judge Victor Marrero in Manhattan rejected the defendants' contention that the company's Oct. 31, 2011, bankruptcy was beyond their control, and not the product of securities fraud.
"Defendants seem convinced that no one named in this lawsuit could possibly have done anything wrong," Marrero said in a 105-page decision. "Defendants' contentions would suggest that ... perhaps the debacle must have been the fateful work of supernatural forces, or else that the explanation for a spectacular multi-billion dollar crash of a global corporate giant is simply that 'stuff happens.'"
Former stockholders and bondholders led by the Virginia Retirement System and the province of Alberta, Canada, accused MF Global of inflating its ability to manage risk, obscuring the risks of its big bet on European sovereign debt, and improperly accounting for deferred tax assets.
While not ruling on the merits, Marrero said the claims carried "an added measure of reliability and plausibility" by drawing from investigations by government regulators and Congressional committees into MF Global's bankruptcy, one of the 10 largest in U.S. history.
Other defendants included former MF Global chief financial officers J. Randy MacDonald and Henri Steenkamp, and seven former independent directors.
The plaintiffs also sued 13 banks and financial institutions, including JPMorgan Chase & Co and Goldman Sachs Group Inc, that helped MF Global raise money by selling stock and bonds.
DIFFERENT RECOVERIES FOR INVESTORS, CUSTOMERS
Corzine is a former governor and U.S. senator from New Jersey, and former co-chairman of Goldman.
He had argued that the allegations suggested that at most he had mismanaged MF Global, was too optimistic, or failed to predict a liquidity squeeze, not that he violated the law.
Corzine also said his ownership of 441,960 MF Global shares, including some bought as late as August 2011, showed he had no motive to commit fraud.
Andrew Levander, a partner at the Dechert law firm who represents Corzine, did not immediately respond to requests for comment.
Lawyers for MacDonald and Steenkamp, and a JPMorgan spokesman, did not immediately respond to similar requests. Goldman spokesman Michael DuVally declined to comment.
MF Global's collapse left about $1.6 billion of customer funds missing.
But on Nov. 5, James Giddens, the trustee unwinding its brokerage unit, won bankruptcy court approval for a plan to close the remaining shortfalls, and fully repay thousands of former customers.
The investor lawsuit, which seeks class-action status, covers investors in MF Global common stock, convertible bonds and senior notes between May 20, 2010, and Nov. 21, 2011.
"It's a good decision, and hopefully will allow us to obtain some recoveries for the class," said Salvatore Graziano, a partner at Bernstein Litowitz Berger & Grossmann representing the investors. "Unlike the customers, the investors here have received no recovery whatsoever."
The law firm Labaton Sucharow also represents investors in the case.
MF Global's demise has also led to civil lawsuits against Corzine by the Commodity Futures Trading Commission and by Louis Freeh, the trustee who wound down the parent company.
The U.S. Department of Justice also opened a probe into MF Global. No criminal charges have been brought.
The case is DeAngelis et al v. Corzine et al, U.S. District Court, Southern District of New York, No. 11-07866.
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Corzine in $5 million settlement with US CFTC over MF Global collapse
http://www.reuters.com/article/us-mfglobal-corzine-idUSKBN14P251
Jon Corzine, former New Jersey governor and Goldman Sachs (GS.N) co-chairman, will pay a $5 million civil fine to settle a U.S. regulator's lawsuit over the 2011 collapse of his commodity brokerage, MF Global Holdings Ltd.
Thursday's accord with the U.S. Commodity Futures Trading Commission resolves the last piece of litigation against Corzine over MF Global's rapid descent into bankruptcy on Oct. 31, 2011, as an estimated $1.6 billion of customer money went missing.
The agreement, which has been approved by a federal judge, bars Corzine from ever working for a futures commission merchant or registering with the CFTC. He also cannot ask insurers to cover the fine.
"I am pleased to have reached this settlement," Corzine, who turned 70 on Jan. 1, said in a statement. "As the CEO of MF Global in 2011, I have accepted responsibility for its failure, and I deeply regret the impact it had on customers, employees, shareholders and others."
Andrew Levander, Corzine's lawyer, noted that none of the criminal and civil probes into MF Global's demise led to charges that Corzine engaged in intentional misconduct or fraud.
In a related settlement, Edith O'Brien, MF Global's former assistant treasurer, agreed to pay a $500,000 civil fine and accept an 18-month industry ban to resolve claims that she "aided and abetted" the misuse of customer funds.
O'Brien's lawyer, Christopher Barber, declined to comment.
The CFTC said MF Global improperly used nearly $1 billion of customer funds to shore up liquidity during the last week of October 2011, rather than keep the funds separate.
This commingling occurred as margin calls, credit rating downgrades and Corzine's big wager on European sovereign debt left customers and investors increasingly worried about the New York-based company's survival.
The CFTC said Corzine failed to properly supervise employees handling customer funds, while O'Brien authorized the illegal transfer of customer funds to MF Global accounts as the specter of bankruptcy loomed.
Customers were fully repaid in 2014.
Corzine and other former MF Global executives last year reached a $132 million settlement with a trustee liquidating the company on behalf of creditors.
A year earlier, executives reached a $64.5 million settlement of separate investor litigation.
Portions of the earlier payouts were covered by insurance.
Corzine, a Democrat, is also a former U.S. senator, and now manages his own money.
He said he plans to focus on "issues that have always been important in my life: my family, community and philanthropic causes, and markets."
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Who cares. Corzine paid a 5 million dollar settlement which is pocket change based on his net worth of a half billion dollars. The lost jobs are meaningless because these are traders...they can always go to another firm. These weren't blue collar jobs