MF Global for Dummies

chanel

Silver Member
Jun 8, 2009
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People's Republic of NJ
This is expected to be one of the top ten bankruptcies in the nation.

What will the fallout be for the American people? For the countries whose currencies they gambled on? For Jon Corzine?

He will be getting a $12 million golden parachute. This is the man who nearly destroyed NJ and was rumored to be a contender for the U.S. Treasurer.

The fallout from MF Global Holdings Ltd.'s collapse intensified as the Commodity Futures Trading Commission voted to issue subpoenas to the securities firm and the Federal Bureau of Investigation planned to examine whether client funds are missing, according to people familiar with the situation.

The two moves are the result of a discrepancy of hundreds of millions of dollars in the New York company's books that was discovered just before MF Global tumbled into bankruptcy Monday, according to people familiar with the matter.

MF Global's Collapse Draws FBI Interest - WSJ.com

I supposed this company isn't "too big to fail"? :confused:
 
If reports are accurate then what MF did was CLEARLY a crime.

MF comingled clients' funds with corporate funds to mask their corporate insolvency.
 
Yes it appears a crime was committed. Of course they are saying it might just be a "bookkeeping error". :doubt:

Right now I'm concerned about the "big picture". TARP was used to prevent this kind of bankruptcy because it would have had a major impact on the economy. Will this?
 
No I don't think TARP is the problem here.

This really is just your basic accounting crime, not much different now than it would be during better times with our without TARP.
 
According to this woman, MF Global is just the tip of the iceberg:
A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable.

The futures and options markets are no longer viable. It is my recommendation that ALL customers withdraw from all of the markets as soon as possible so that they have the best chance of protecting themselves and their equity. The system is no longer functioning with integrity and is suicidally risk-laden. The rule of law is non-existent, instead replaced with godless, criminal political cronyism.

"The Entire System Has Been Utterly Destroyed By The MF Global Collapse" - Presenting The First MF Global Casualty | ZeroHedge
 
The court-appointed trustee overseeing the liquidation of MF Global’s brokerage now estimates that the shortfall in the firm’s customer funds could be more than $1.2 billion, double previous estimates.

Regulators currently suspect that MF Global improperly used customer money for its own purposes in the days before filing for Chapter 11 protection, according to people briefed on the matter.

MF Global Trustee Says Shortfall Could Exceed $1.2 Billion - NYTimes.com

I wonder what the magic number is for jail time. $600 million? 1.2 billion? or 70 gazillion?
 
According to this woman, MF Global is just the tip of the iceberg:
A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable.

The futures and options markets are no longer viable. It is my recommendation that ALL customers withdraw from all of the markets as soon as possible so that they have the best chance of protecting themselves and their equity. The system is no longer functioning with integrity and is suicidally risk-laden. The rule of law is non-existent, instead replaced with godless, criminal political cronyism.

"The Entire System Has Been Utterly Destroyed By The MF Global Collapse" - Presenting The First MF Global Casualty | ZeroHedge

Though it is one of my daily sites, I would be really, really hesitant to quote anything from ZeroHedge as an accurate assessment of, well, anything.

And I believe Corzine has foregone his severance package.

But he was a failure at MF Global, no doubt about it. Damn, they were stupid.
 
Though it is one of my daily sites, I would be really, really hesitant to quote anything from ZeroHedge as an accurate assessment of, well, anything.

And I believe Corzine has foregone his severance package.

But he was a failure at MF Global, no doubt about it. Damn, they were stupid.

what i don't understand is why he allowed global to leverage as heavily as he did when he was one of the people railing against that kind of debt to asset ratio when the economy crashed.

oh.. and you're correct. he DID forego his severance package. it seems, though, that there wouldn't have been a severance package, anyway, once the bankruptcy court gets through with MF Global.
 
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interesting READ

Employees of the company have given $108,650 to Obama’s campaign and the Democratic National Committee, according to federal records. MF Global’s chairman and chief executive, former New Jersey governor Jon Corzine, has raised at least $500,000 for the campaign and the DNC as a “bundler,” or volunteer fundraiser.
MF Global ties awkward for Obama campaign - The Washington Post

and yes I noticed Romney received some money from and employee but no support from the Chairman and CEO
 
Though it is one of my daily sites, I would be really, really hesitant to quote anything from ZeroHedge as an accurate assessment of, well, anything.

And I believe Corzine has foregone his severance package.

But he was a failure at MF Global, no doubt about it. Damn, they were stupid.

what i don't understand is why he allowed global to leverage as heavily as he did when he was one of the people railing against that kind of debt to asset ratio when the economy crashed.

oh.. and you're correct. he DID forego his severance package. it seems, though, that there wouldn't have been a severance package, anyway, once the bankruptcy court gets through with MF Global.

All investment banks use leverage. That's their business model. He just did it stupidly. I was trying to figure out what he knew about the European sovereign crisis nobody else did, because he blew up MF Global buying European bonds. He also allowed his firm to be placed at the mercy of the dealers. MF was a dealer. Think of the dealers as The House in a casino. He's The House, and decides he doesn't want to be The House anymore, and let others be The House. Pretty stupid. MF used to be a commodity broker, and a good one at that. Then he wanted to make it Goldman-lite. What a fool.
 

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