Forum Post: Corzine Live on CSPAN now
Posted 12 years ago on Dec. 13, 2011, 2:55 p.m. EST by stephenadler
(118)
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http://www.c-span.org/Events/Senate-Looks-into-MF-Global-Bankruptcy/10737426222-1/
Corzine just blamed the loss of fund on customers withdrawing their money... HA! 2:48pm.
People, listen in on the CSPAN broadcast of the Senate committee hearing where they are trying to get Corzine, MF Global's CEO, to explain how 1.2 Billion of depositors went poof. The general answers given by Corzine and his minions are, "We all followed the rules, but I have no idea where the money is." He claims to have had all sorts of rules and regulations in place and procedure and processes by which controls are executed to ensure the depositors money couldn't be lost.... But these guys have no idea where the money went, and they talk about it as if money can just spontaneously disappear. As if, "Well, that's just how it is..."
I've come to realize that banks use customer deposits to play casino investments and its rampant in our system. The laws have been changed so that banks can now invest deposited money, not just in US backed investments, but in just about anything, even foreign sovereign debt! As in, Bank of America can take your deposit and invest it in Italian bonds! And it is ALL LEGAL! This is INSANE!
A result of a laissez-faire attitude towards regulation! Fortunately only the capital owners get harmed. Hope they learn their lesson from the MF Global scandal and would demand reforms.
The only reason MF Global wasn't considered too big to fail is that it was mostly farmers and small investors on the short end of the stick and not CEOs and politicians.
I don't have much hope for anything better than the 9/11 commission with regard to the investigation and justified prosecutions that should show up in the wake of this bankruptcy - but I do have a tiny bit and will certainly be watching :)