(D) Jon Corzine's MF Global Lays off 1,066 Workers...

Discussion in 'Politics' started by paulitician, Nov 12, 2011.

  1. paulitician
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    paulitician Platinum Member Supporting Member

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    Just two weeks after MF Global filed for Chapter 11 bankruptcy, the trustee overseeing the failed futures brokerage disclosed plans on Friday to fire all of its broker dealer employees as it liquidates the business.

    In a statement, the court-appointed trustee, James Giddens, said the broker dealer’s 1,066 employees were notified on Friday that their employment has been terminated, effective immediately.

    However, the MF Global trustee said the liquidation and terminations don't apply to the parent company, MF Global Holdings, which listed 2,847 employees as of September.

    “We’re saddened by the trustee’s actions today to terminate so many of our colleagues," an MF Global spokesperson said in a statement.

    The terminated broker dealer workers’ salaries will be paid through November 15 and between 150 and 200 former employees will be hired back to assist in the “wind down” of MF Global’s businesses and processing of bankruptcy claims. However, none of the workers who are being fired will receive severance and their health-care benefits.



    Read more: Trustee Fires 1,066 Workers at MF Global's Broker Dealer | Fox Business
     
  2. paulitician
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    paulitician Platinum Member Supporting Member

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    Are they still gonna claim our Unemployment Rate is only 9%?
     
  3. paulitician
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    paulitician Platinum Member Supporting Member

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    This is just plain sad. Orange Jumpsuit time for Corzine? Stay tuned.
     
  4. ladyliberal
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    ladyliberal Progressive Princess

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    According to the BLS, U.S. Bureau of Labor Statistics, about 180,000 workers were laid off last quarter, so laying off ~1,000 workers won't show up in the unemployment rate when it is reported to the nearest tenth of a percent.

    And none of the behavior described in the article you cite is either allegedly criminal or even directly attributable to Corzine. It's kind of odd that someone who professes to adhere to libertarian principles seems to be suggesting that jail time is appropriate for the crime of a private corporation taking risks and laying off workers.
     
  5. paulitician
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    paulitician Platinum Member Supporting Member

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    Just posed the question. Not sure what he did was illegal. But i'm sure the authorities will be checking. And i do believe their Unemployment Numbers are a fraud. The actual Unemployment Rate has to be much much higher. Businesses are still closing at an alarming rate. I just don't see how the rate has stayed at 9%. I don't trust their numbers.
     
  6. ladyliberal
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    ladyliberal Progressive Princess

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    Yeah, after I posted I kept looking, and I think I understand your reference to criminal charges better. Authorities are investigating about $700 million they can't find: Regulators Investigating MF Global for Missing Money - NYTimes.com

    Based on that, criminal charges are possible, though I don't think they are terribly likely, and nothing implicates Corzine yet.

    I don't think unemployment numbers are a fraud. It's important to understand how they are calculated, and especially to understand the distinction drawn between people who want jobs and people who are actively searching for jobs. The BLS tries to explain these issues:

    Monthly Employment Situation Report: Quick Guide to Methods and Measurement Issues
    Employment Situation Frequently Asked Questions

    and I don't know of any particularized accusations of fraud pending against them.
     
  7. paulitician
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    paulitician Platinum Member Supporting Member

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    Fair observation. Thanks for the info.
     
  8. paulitician
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    paulitician Platinum Member Supporting Member

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    I wouldn't be surprised if we find this Administration being involved with this tragedy somehow. Cronyism is running wild in this White House. And Corzine is a very good friend of Obama's. I guess we'll see though.
     
  9. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Jon Corzine is a former Goldman Sachs CEO who while in charge of Global MF co-mingled depositors money (highly illegal) so they could leverage (think fractional reserve banking) that 700 million into a 6.3 Billion bet on Belgian, Irish, Italian, Portugese and Spanish debt.
    MF Global CEO Jon Corzine quits as big bet fails | Reuters
    Let's see, 6.5 billion divided by 700 million means that it was leveraged a little over 9 times. But that's alright, Corzine got a huge Golden Parachute!
    Guns'n'Banks: There's no law on Wall Street - YouTube!
     
  10. bitterlyclingin
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    bitterlyclingin Silver Member

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    (Joe Biden's quip about calling Jon Corzine being the Democrat's first move in dealing with the Banking Crisis should have sent warning bells off across the country. With Corzine's MF Global having now adopted the same condition as the current seaworthiness of the Titanic, the irony that the Democrats had also seen fit to call in the director of the movie "Titanic", Jamees Cameron, for advice during the last crisis, the BP Oil Spill, is becoming apparent. The regular appearance of events able to be compared to the sinking of the Titanic in the Obama Administration is starting to make this administration's record look like a "Groundhog Day" rerun. Are the events conspiring to try to tell us something?)

    "How Economic Problems Perpetuate, Part XXIV

    By Doug Powers • November 13, 2011 11:08 AM

    **Written by Doug Powers

    MF Global, the securities fun led by Jon Corzine, recently declared the eighth largest bankruptcy in US history and is now said to be the subject of an FBI investigation. Hundreds of millions of dollars remain unaccounted for. The bankruptcy was preceded by high risk-taking, a credit downgrade to junk status, heavy debt and the company allegedly used money from client accounts. As a result, last week, over a thousand people lost their jobs without severance and 150,000 accounts are frozen.

    Rewind the tape a couple of years: In 2009, Joe Biden said that the first thing the Obama administration did about the banking crisis when they took office was to… call Jon Corzine for advice."

    Michelle Malkin » How Economic Problems Perpetuate, Part XXIV
     

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