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

Discussion in 'Media' started by hvactec, Oct 31, 2011.

  1. hvactec
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    hvactec VIP Member

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    From Customers?

    10/31/2011 21:06

    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:

    read more Someone Is Going To Jail For This: MF Global Caught Stealing Hundreds Of Millions From Customers? | ZeroHedge
     
  2. hvactec
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    hvactec VIP Member

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    Here wanna read more about:

    Former Goldman Sachs chief Jon Corzine's bid to revive his Wall Street career crashed and burned when his MF Global Holdings Ltd filed for bankruptcy protection following bad bets on euro zone debt.

    Regulators Investigating MF Global for Missing Money

    read more NY Times Regulators Investigating MF Global for Missing Money - NYTimes.com
     
    Last edited: Oct 31, 2011
  3. KissMy
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    KissMy Free Breast Exam

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  4. editec
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    editec Mr. Forgot-it-All

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    Well put.

    Will anybody go to prison?

    Maybe they'll find a scapegoat or two, but it the system itself that needs to be put down.

    And that is NOT going to happen.
     
  5. KissMy
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    KissMy Free Breast Exam

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    Corzine's White House bond looks unlikely

     
  6. CrusaderFrank
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    CrusaderFrank Diamond Member

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    [​IMG]
     
    • Thank You! Thank You! x 1
  7. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Where's the OWS crowd when you need them to protest greedy crooked scumbags?
     
  8. KissMy
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    KissMy Free Breast Exam

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  9. uscitizen
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    uscitizen Senior Member

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    Ahh if only we had our SS money invested in MF Global...
     
  10. Mad Scientist
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    Mad Scientist Deplorable Gold Supporting Member Supporting Member

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    Yeah it's invested in something better: The US Gov't! :lol:
     

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