Forum Post: How Former Goldman CEO And NJ Governor Jon Corzine Ran MF Global Into The Ground (Cant they just rub some Corzine on it?)
Posted 13 years ago on Oct. 31, 2011, 5:24 p.m. EST by MonetizingDiscontent
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BOMBSHELL: Here's A Tape Of Newt Gingrich Endorsing Obamacare
(((Video))) http://www.businessinsider.com/newt-gingrich-endorses-obamacare-individual-mandate-audio-2012-1#ixzz1kzbLDUyK
-1/30/2012-
Newt Gingrich has spent the leadup to the state's presidential primary casting Mitt Romney as Barack Obama's Republican twin, telling reporters this morning that Romney's Massachusetts healtcare reform law "is Obamacare."
But it turns out Newt has some serious Obamacare problems of his own.....
American Medical Association Journal Of Ethics
Should Participation in Vaccine Clinical Trials be Mandated?
http://virtualmentor.ama-assn.org/2012/01/pfor1-1201.html
Susanne Sheehy, BM BCh, MRCP, DTM&H, and Joel Meyer, BM BCh, MRCP
Few would argue with Bill Gates when he describes vaccination as “the most effective and cost effective health tool ever invented” [1]. To date vaccination has saved many lives and has the potential to save millions more, especially if vaccines are developed against the “big three”: malaria, HIV, and TB [2-5]. Vaccine development, however, comes at a price that is not only financial but societal. The lack of animal models that can reliably predict vaccine efficacy means that development still unavoidably relies on testing of novel vaccines in healthy individuals. Given the often unquantifiable risks to the recipients of vaccines in early stages of development, clinical trials have traditionally relied on informed and consenting volunteers who appreciate the potential risks but still choose to participate for altruistic reasons [6, 7]. But relying on altruism alone to facilitate clinical trials is potentially unsustainable and ethically contentious.....
(((Yikes, Continue Reading this Paper Here))) http://virtualmentor.ama-assn.org/2012/01/pfor1-1201.html
How Former Goldman CEO And NJ Governor Jon Corzine Ran MF Global Into The Ground
http://dailybail.com/home/how-former-goldman-ceo-and-nj-governor-jon-corzine-ran-mf-gl.html
You gotta love this story as it proves that despite being CEO of Goldman Sachs (before Hank Paulson... http://www.youtube.com/watch?v=Zq3-sHYGD-I&feature=player_embedded ...discharged him in a bloodless vacation coup) and a former Governor of New Jersey, Jon Corzine was at his core a herd following lemming, or simply an idiot, whichever you prefer.
Corzine has been running MF Global, a publicly traded investment firm since he lost the Governor's race to Chris Christie a few years ago. Now, as MF Global spins in its final death spiral... http://www.bloomberg.com/news/2011-10-27/mf-global-is-said-to-have-exhausted-all-of-its-bank-credit-lines-this-week.html ...awaiting bankruptcy, Bloomberg reveals the source of the trouble:
The Final Straw? Jefferies And Six Other Banks Sued For “Fraudulent” MF Global Bond Issuance
(TylerDurden) Pick the odd one out of the following 7 banks, while in the process pointing out what they have in common: Bank of America Corp, Citigroup Inc, Deutsche Bank AG, Goldman Sachs Group Inc, Jefferies Group Inc, JPMorgan Chase & Co and Royal Bank of Scotland Group Plc. As it so happens 6 of the 7 are Bank Holding Companies, and have access to the Fed's various emergency facilities.
The seventh, Jefferies, which a few years ago, boasted that it is now the largest remaining true investment bank after all its competitors had converted to BHC status, may soon regret it said that and did not join its peers. Why? For the same reason why on November 1, the day after MF Global filed for bankruptcy, we tweeted: "Here is why Jefferies is in deep doodoo: http://1.usa.gov/uNBhzq"
The reference of course is to the now legendary prospectus for the MF Global 6.25% notes of 2016 that had the infamous Corzine key man event: "interest rate applicable to the notes will be subject to an increase of 1.00% upon the departure of Mr. Corzine as our full time chief executive officer due to his appointment to a federal position by the President of the United States and confirmation of that appointment by the United States Senate prior to July 1, 2013."
At this point the only appointment Obama may give Corzine is that of a presidential pardon for a criminal felony offense (assuming of course Corzine brings a sleeping bag to Zuccotti square: the only offense for which he may ever be arrested).
Alas, Jefferies, and the 6 other banks, do not have that luxury: as of late this afternoon, all six were sued by pension funds "who said the bonds' offering prospectuses concealed problems that led to the futures brokerage's collapse." Precisely as Zero Hedge expected.
And unfortunately for Jefferies, this may well be the final nail in the coffin - because while the market had punished the bank for its Exposure, the biggest unknown in the past 2 weeks was whether and when it would be sued precisely for its MF Global liability.
That time is now: next up - every single entity that was impaired in part or in whole as a result of the MF Global bankruptcy will follow suit and sue the same 7 banks... of which only Jefferies does not have the benefit of an infinite backstop.
CME Knew of MF Global Fund Shortfall Before CFTC Regulators?
Only days prior to the zombie financial broker that filed for bankruptcy, MF Global conducted “unexplained wire transfers” that brought on a $900 million shortfall in client funds. Customers like Gerald Celente learned that their accounts had been robbed. This is setting a precedent for -internal- bank runs as more big firms begin to go under.
This from BLOOMBERG: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/11/16/bloomberg_articlesLUQ7FP0YHQ0X.DTL ...“Examiners from CME Group Inc., the world’s largest futures exchange, found unexplained wire transfers at MF Global Inc. and a $900 million shortfall in client funds during the weekend the failing broker was talking with possible buyers, a person briefed on the matter said.”
On October 30th the CME had noticed these funds were missing, yet MF Global didn’t bother to inform the Commodity Futures Trading Commission until the following day after, which suggests that these transfers were made, “in a manner that may have been designed to avoid detection,” according to CME.
::::::::Fund Transfers Are Focus of MF Global Probe::::::::
http://online.wsj.com/article/SB10001424052970204517204577044481154710176.html
BY SCOTT PATTERSON
Regulators have unearthed new details indicating MF Global Holdings Ltd. shifted hundreds of millions of dollars in customer funds to its own brokerage accounts in the days before its bankruptcy filing, according to people familiar with the matter.
Such moves could violate regulations stipulating that commodities brokers can't mix customer funds with brokerage funds. Brokerage funds often are used to back proprietary trading positions.
According to MF Global's internal records, the transactions were as large as hundreds of millions of dollars at a time, these people said.
It is common practice among futures brokers to maintain a buffer of firm ...
"The Entire System Has Been Utterly Destroyed By The MF Global Collapse" - Presenting The First MF Global Casualty
(Presented without comment, merely to confirm that the market as we know it, no longer exists.)
http://www.zerohedge.com/news/entire-system-has-been-utterly-destroyed-mf-global-collapse-presenting-first-mf-global-casualty
::::::::::::BCM Has Ceased Operations::::::::::::
Posted by Ann Barnhardt - November 17, AD 2011 10:27 AM MST
:::::::::::::(source) http://barnhardt.biz/::::::::::::::
Dear Clients, Industry Colleagues and Friends of Barnhardt Capital Management,
It is with regret and unflinching moral certainty that I announce that Barnhardt Capital Management has ceased operations. After six years of operating as an independent introducing brokerage, and eight years of employment as a broker before that, I found myself, this morning, for the first time since I was 20 years old, watching the futures and options markets open not as a participant, but as a mere spectator.
The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not.
And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse.
Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy... 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...Finally, I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy.
To my clients, who literally TO THE MAN agreed with my assessment of the situation, and were relieved to be exiting the markets, and many whom I now suspect stayed in the markets as long as they did only out of personal loyalty to me, I can only say thank you for the honor and pleasure of serving you over these last years, with some of my clients having been with me for over twelve years. I will continue to blog at Barnhardt.biz, which will be subtly re-skinned soon, and will continue my cattle marketing consultation business. I will still be here in the office, answering my phones, with the same phone numbers. Alas, my retirement came a few years earlier than I had anticipated, but there was no possible way to continue given the inevitability of the collapse of the global financial markets, the overthrow of our government, and the resulting collapse in the rule of law.
As for me, I can only echo the words of David:
“This is the Lord’s doing; and it is wonderful in our eyes.”
With Best Regards- Ann Barnhardt
::::::::Read the entire thing Here::::::::
http://www.zerohedge.com/news/entire-system-has-been-utterly-destroyed-mf-global-collapse-presenting-first-mf-global-casualty
::::::::The Koch Brothers and MF Global - Friends to the End::::::::
http://www.huffingtonpost.com/daniel-dicker/the-koch-brothers-and-mf-_b_1089906.html
“Both the Commodity Futures Trading Commission and the Chicago Mercantile Exchange were charged with overseeing MF Global, their clearing member. If we are to believe them, they had no idea of any difficulties within the firm before customer accounts went missing just a few days before the collapse. But someone clearly knew of the cratering positions and imminent collapse of MF Global, as billions of dollars of accounts were “coincidentally” withdrawn. And what do the Koch brothers say was the reason for these withdrawals? There's been no comment.”
::::::::Continue reading this article at::::::::
http://www.huffingtonpost.com/daniel-dicker/the-koch-brothers-and-mf-_b_1089906.html
::::::::::::MF Global Clients: Few Options to Reach Cash::::::::::::
http://www.bloomberg.com/news/2011-11-11/mf-global-clients-frustrated-as-bankruptcy-keeps-assets-and-options-frozen.html
(BLOOMBERG) Ted Monjure, a 48-year-old Manhattan... http://topics.bloomberg.com/manhattan/ ...trader who has $27,252 frozen in a former MF Global Inc. account, said he’s considering pulling his money out of his three other trading accounts.
“I’m a high net-worth person, and I don’t want to see $1 million get smoked by another misunderstanding,” Monjure said, recounting how he had thought the Securities Investor Protection Corp. covered any losses due to a meltdown such as the one at MF Global. He’s now been told SIPC may not cover the money because it was in a futures account while he faces months of uncertainty as he files a claim seeking recoveries.
Monjure is one of many MF Global customers who can’t access cash from segregated accounts they once thought were as safe and accessible as bank deposits. http://topics.bloomberg.com/bank-deposits/ ...Frustrated by a lack of legal options to reclaim frozen funds and dead-end inquiries to call centers and hotlines since MF Global’s Oct. 31 bankruptcy, many aren’t able to trade and say they’ve lost faith in retail brokerages and the regulatory system.
More than 150,000 customer accounts were frozen Oct. 31, with $5.45 billion affected, the day after a unit of the New York-based brokerage reported a “material shortfall” in customer funds that are required to be segregated under rules of the U.S. Commodity Futures Trading Commission.
-Collapse-
MF Global listed $39.7 billion in debt and $41 billion in assets and said it has about $26 million in cash in its Oct. 31 bankruptcy filing. Jon Corzine... http://topics.bloomberg.com/jon-corzine/ ...the former co-chief executive officer of Goldman Sachs Group Inc. (GS) http://www.bloomberg.com/apps/quote?ticker=GS:US ...quit as MF Global’s CEO on Nov. 4. CFTC Chairman Gary Gensler... http://topics.bloomberg.com/gary-gensler/ ...has recused himself from the agency’s investigation.
About $593 million of MF customer funds are unaccounted for, according to a person with knowledge of regulatory probes of the firm’s collapse.
While the brokerage’s parent, MF Global Holdings Inc., filed for bankruptcy to apportion returns to creditors, a trustee, James W. Giddens, took over to liquidate the brokerage under SIPC.
SIPC is a private, government-sponsored company that insures brokerage accounts for up to $500,000 in securities, as much as $250,000 of which may be in cash, in case the brokerage goes bankrupt. While SIPC covers losses in stocks and bonds, it doesn’t cover commodity futures contracts unless defined as specific property under certain conditions...
::::::::::::Continue Reading the rest of this story Here::::::::::::
http://www.bloomberg.com/news/2011-11-11/mf-global-clients-frustrated-as-bankruptcy-keeps-assets-and-options-frozen.html
::::::::::::Gerald Celente - Jeff Rense Radio Show::::::::::::
Trends Forecaster Gerald Celente explains how they are going to screw us the way MF Global screwed him! ((at the 38 minute mark on video))
http://www.youtube.com/user/geraldcelente#p/u/0/oihowiuuLUw
Gerald Celente: My 'MF Global' Gold Positions Have Been Confiscated by the CME
http://silverdoctors.blogspot.com/2011/11/gerald-celente-my-mf-global-gold.html
((starts at 9:30 on vid.))
::::::::::::MF Global Liquidation - Everyone Gone!::::::::::::
http://www.zerohedge.com/news/mf-global-liquidation-everyone-gone
::::::::::::Headlines via Bloomberg for now::::::::::::
*MF GLOBAL'S 1,066 EMPLOYEES HAVE BEEN FIRED, TRUSTEE SAYS
MF GLOBAL EMPLOYEES LOSE JOBS AS BROKER LIQUIDATES :MFGLQ US
*MF GLOBAL TRUSTEE TO HIRE UP TO 200 PEOPLE TO AID LIQUIDATION
::::::::Full Statement from the Trustee, at::::::::
http://www.zerohedge.com/news/mf-global-liquidation-everyone-gone
::::::::MF Global Customers Say Money Safeguards Failed Them::::::::
http://www.businessweek.com/news/2011-11-07/mf-global-customers-say-money-safeguards-failed-them.html
Nov. 5 (Bloomberg) -- Customers of MF Global Holdings Inc. whose money is still trapped at the futures broker almost a week after filing for bankruptcy protection say the safeguards meant to protect them failed as exchanges and regulators work to move client positions.
CME Group Inc., the world’s largest futures exchange that’s also responsible for auditing its clearing members such as MF Global under its authority as a self-regulating organization, said on Nov. 4 it was in the process of transferring about 15,000 positions. Under a court order in the bankruptcy case, no funds or collateral not backing futures positions can be transferred to another futures broker.
“It shows a terrible weakness in the exchanges, the industry and the regulators,” said Elaine Knuth, an MF Global customer since 2005 who trades agricultural commodities for her own account. Her positions total between $100,000 and $500,000, she said. “The whole system broke down.”
MF Global, the holding company for the broker-dealer run by ex-Goldman Sachs Group Inc. co-chairman Jon Corzine, filed for bankruptcy protection on Oct. 31 after making bets on European sovereign debt. Its broker-dealer unit, MF Global Inc., faces liquidation.
The firm listed debt of $39.7 billion and assets of $41 billion in Chapter 11 papers filed in U.S. Bankruptcy Court in Manhattan.
:::::Continue Reading this article Here:::::
http://www.businessweek.com/news/2011-11-07/mf-global-customers-say-money-safeguards-failed-them.html
::::::::::::[video#208] Keiser Report – Gold Wars! With Jim Rickards::::::::::::
http://maxkeiser.com/2011/11/10/kr208-keiser-report-gold-wars-with-jim-rickards/
MaxKeiser & CoHost StacyHerbert discuss European gold wars and the brokers at the Chicago Board of Trade telling others to get a job while they can’t even do the one job they have.
Max & Stacy also report on MF GLOBAL's customers claiming that 'Money-Safegaurds' failed them. ((10:00 minute mark in the Video))
In the second half of the show, Max Keiser interviews James G. Rickards about his new book – Currency Wars: The Making of the Next Global Crisis.
MF Global And Jon 'Superman' Corzine
http://dailybail.com/home/chris-whalen-mf-global-and-jon-superman-corzine.html
By Chris Whalen
There have been a number of good analyses of the MF Global collapse and the role of “repo-to-maturity” trades in the failure. See “MF Global and Repo Accounting,” http://blogs.smeal.psu.edu/grumpyoldaccountants/archives/375 ...which also has links to Felix Salmon and several other good posts. Read Yves Smith’s comment on Lehman Brothers... http://www.nakedcapitalism.com/2010/03/ny-fed-under-geithner-implicated-in-lehman-accounting-fraud.html ...from last March as well.
But one of the things that most people seem to miss in this fiasco is the role of off-balance-sheet or OBS accounting in making the failure of MF Global a reality and, in particular, what it implies for other, larger banks.
Many observers say that the FASB erred by not “fixing” the OBS issue via disclosure, but in fact we need to eliminate OBS treatment of all assets, period. Indeed, the MF Global failure suggests that the US and EU banking systems may be facing a far larger problem than even the most bearish analysts suspect.
First let’s ponder a recent report by the International Swap Dealers Association or ISDA. A post on RiskCenter summarizes the findings:
...Continue Reading this article Here...
http://dailybail.com/home/chris-whalen-mf-global-and-jon-superman-corzine.html
Full MF Global Bankruptcy Petition... In Which We Find That Corzine's Bankrupt Firm Owes CNBC $845,397?
http://www.zerohedge.com/news/full-mf-global-bankruptcy-petition-which-we-find-corzines-bankrupt-firm-owes-cnbc-845397
Full bankruptcy filing attached below, (at zerohedge, link above) where we find that in addition to owing JPM and Deutsche Bank $1.2 billion and $1 billion respectively, as bond trustees, the 7th biggest unsecured creditor with $845,397, is... CNBC? Perhaps that explains the objective reporting the Comcast station has provided on the topic of MF over the past several weeks, considering the caliber and quality of guests invited to opine. It also should be a reminder to all advertising collections offices to never be more than 30 days late on collecting receivables. Of course, this is pure speculation on our behalf. We are confident CNBC will provide a far more rational explanation why it is owed nearly $1 million by MF Global, and just what is the nature of services rendered...
::::::::::::::::MF Global and ‘Peek-a-Boo’ Accounting::::::::::::::::
http://maxkeiser.com/2011/11/10/mf-global-and-peek-a-boo-accounting/
::::::::::::MF Missing Funds May Be ‘Massive’ Ploy: Chilton::::::::::::
http://www.bloomberg.com/news/2011-11-10/mf-global-missing-funds-may-be-part-of-massive-ploy-cftc-s-chilton-says.html
The $593 million shortfall in client money at MF Global Holdings Ltd., the broker that filed for bankruptcy on Oct. 31, appears to result from a “massive hide- and-seek ploy,” Bart Chilton, a commissioner at the U.S. Commodity Futures Trading Commission, said today.
::::::::Did Jon Corzine Just Get A $12.1 Million Golden Parachute?::::::::
Based on the MF Global Proxy statement filed in August 2011, there are rumors that the now defunct Primary Dealer will pay Jon Corzine a severance of $12.1 million. However, is that the full story?
http://www.zerohedge.com/news/did-jon-corzine-just-get-121-million-golden-parachute
::::::::Jon Corzine Resigns From MF Global, Will Not Collect Severance::::::::
http://www.zerohedge.com/news/jon-corzine-resigns-mf-global-will-not-collect-severance
What I hear is that no one is even sure what he did can be prosecuted.
http://www.democracynow.org/2011/11/3/jon_corzines_mf_global_firm_collapses
Amy Goodman talks to William Cohan, author of several books, including Money and Power: How Goldman Sachs Came to Rule the World & contributing editor to Vanity Fair
::::As Repeatedly Warned, Quarter End Window Dressing Key Factor In MF Global's Demise::::
http://www.zerohedge.com/news/repeatedly-warned-quarter-end-window-dressing-key-factor-mf-globals-demise
SEC Opens Investigation Into MF Global Insider Trading, Ignores Glaring Evidence Of Client Capital Commingling
http://www.zerohedge.com/news/sec-opens-investigation-mf-global-insider-trading-ignores-glaring-evidence-client-capital-commi
MF Bankruptcy Causes Biggest Foreign Bank Liquidity Scramble To 'Fed Safety' Ever, Harbinger Of Major Eurobank Stress
http://www.zerohedge.com/news/mf-bankruptcy-causes-biggest-foreign-bank-liquidity-scramble-fed-safety-ever-harbinger-major-eu
Regulators Investigating MF Global For $700 Million In Missing Client Funds - Was It Stolen By Management?
http://dailybail.com/home/regulators-investigating-mf-global-for-700-million-in-missin.html
MF Global Client Theft Estimate Doubled To $1.5 Billion?
http://www.zerohedge.com/news/mf-global-client-theft-estimate-doubled-15-billion
Even as we hear rumblings that the MF fire is spreading, and the associated auditor of the now infamous former Primary Dealer is about to get in serious hot water, the bankrupt company itself continues to dig itself an ever deeper grave. Because according to a just filed motion by the MF Global liquidating trustee, it seems that the gross criminal activity by the company may have been orders of magnitude bigger than anyone has expected.
To wit: "As a result of the apparent segregation violations and the suspension of clearing privileges, more than 150,000 customer accounts essentially were frozen on October 31, 2011, of which more than 50,000 accounts were regulated commodities customer accounts.
The CME estimates that MFGI’s current segregated funds requirement is approximately $5.45 billion. Moreover, the total amount of MFGI customer segregated funds on deposit at the CME is approximately $2.5 billion, and the clearing-level segregated collateral is approximately $1.5 billion or approximately 60 percent of the MFGI customer segregated funds on deposit at the CME."
Doing some quick inverse addition and we get a (w)hole of $5.45 less $2.5 less $1.5 or $1.45 billion. In other words, the theft by MF Global was not stealing hunderds of millions form its customers: it has stolen a whopping $1.5 billion!
For those confused, this is not a rogue loss of $1.5 billion, something which was enough to send UBS' Kweku to prison. This is outright theft resulting from illegally commingled accounts. Our only question is will $1.5 billion in theft be enough for the first real perp walk of an Obama-friendly Wall Street executive?
And here is Reuters with a revised lowball. Remember this number was supposed to be zero earlier today. (link below)
::::::::Continue Reading at::::::::
http://www.zerohedge.com/news/mf-global-client-theft-estimate-doubled-15-billion
When all is said and done, the shortfall will be well over a billion.###
::::::::::::MF Global Admits Using Client Money::::::::::::
http://dailybail.com/home/breaking-mf-global-admits-using-client-money.html
This is not looking good for former New Jersey Senator and Governor, and previously Goldman Sachs CEO Jon Corzine. More than $700 million of supposedly safeguarded client funds were stolen by MF Global to support besieged trading positions. Jon Corzine should go to prison. If Corzine escapes without a Federal ID number and associated orange jumpsuit due to fundraising ties with Obama and Eric Holder, then the game is over.
JON CORZINE - MEET BUBBA
http://www.zerohedge.com/news/jon-corzine-meet-bubba
The admission is here:
((1)) MF Global Admits Using Client Money, AP Says
((2)) MF exec. made the admission in phone call with regulators Monday morning
...It's time to get some expert on the ex-MF Global head's mental state and to blame temporary insanity, otherwise, someone is going to be bunking with Bubba very shortly.
-From AssociatedPress-
A federal official says MF Global, the securities firm led by Jon Corzine, admitted to using clients' money as its financial troubles mounted.
An MF Global executive admitted that to federal regulators in a phone call early Monday after regulators discovered money missing from clients' accounts, according to an official familiar with the conversation.
The official spoke on condition of anonymity because he was not authorized to discuss a preliminary investigation by federal regulators.
Government rules require securities firms to keep clients' money and company money in separate accounts. Violating them could result in civil penalties.
MF Global, which filed for bankruptcy protection on Monday, faced a cash crunch following multibillion-dollar bets on European sovereign debt.
Corzine ran Goldman Sachs Group Inc., and later was governor of New Jersey
::::::::Liquidity Scramble Begins In MF Commingling Aftermath::::::::
http://www.zerohedge.com/news/liquidity-scramble-begins-mf-commingling-aftermath
(ZeroHedge) When sharing our perspective last night on why the alleged MF Global crime of commingling client capital with the firm's deficiency capital we asked, "What happens next? Why customers at all other brokerages, all other exchanges, afraid that their money will suffer the same fate as MF, even if they transact with perfect solvent clearers and agents, will proceed to pull their money, as they know they have nobody to trust but their own prudent and forward looking actions. Which in turn will start the kind of liquidity drain that killed not only Lehman, but froze money markets, and with that brought the complete capital markets to a standstill, only to be thawed after the Fed pledged multiples of the US GDP to rescue Wall Street in October of 2008."
Sure enough, here it comes. "Reports of short falls of client money ... if true would be a disaster for all the smaller brokers and banks as nobody will trust them anymore," one London trader said. Reuters continues "MF Global filed for bankruptcy protection on Monday, putting a sudden end to Corzine's drive to transform the more than 200-year old MF Global into a mini Goldman by taking on more risky bets on euro zone sovereign debt. In Australia, trading in grain futures and options was suspended by bourse operator ASX Ltd , prompting concerns about the integrity of the country's agricultural futures market. "We're sitting out here with risk that we can't cover," said Jonathan Barratt, head of Sydney-based Commodity Broking Services. MF Global was one of the largest participants in the country's agricultural futures market. And it is all only going to get worse as the liquidity outflow avalanche is realized, following the market's most recent distraction with Europe.
::::Continue Reading at::::
http://www.zerohedge.com/news/liquidity-scramble-begins-mf-commingling-aftermath
::::::::WRAPUP 1-Clients scramble for money after MF Global shock::::::::
http://www.reuters.com/article/2011/11/01/mfglobal-exchanges-idUSL5E7M12NY20111101
:::::Fitch Cuts MF Global Credit Rating to Junk After Shares of Broker Tumble:::::
http://www.bloomberg.com/news/2011-10-27/fitch-cuts-mf-global-credit-rating-to-junk-after-shares-tumble.html
Corzine increased the firm’s risk and used its own money to trade, including investments in European sovereign debt. Corzine began adding sovereign debt of Italy, Spain, Belgium, Portugal and Ireland about a year ago, according to a company presentation. The positions accounted for 16 percent and 12 percent of net revenue in the quarters ended in March and June, the firm said.
::::::::Heart Stopping News: MF Global did Not Separate Customer Accounts::::::::
http://www.reuters.com/article/2011/11/01/us-cme-mf-idUSTRE7A02WJ20111101
(Reuters) - MF Global Holdings Ltd, the futures broker that filed for bankruptcy protection on Monday, did not separate its customers' accounts from the firm's funds as required by law, its main exchange regulator said on Tuesday.
"CME has determined MF Global is not in compliance with Commodity Futures Trading Commission and CME customer segregation requirements," CME Group Inc Chief Executive Craig Donohue said. Futures brokers must keep customer accounts separate from each other and from the firm's own money.
Donohue said CME is looking into exactly what happened at MF Global.
::::::::Heart Stopping News::::::::
http://maxkeiser.com/2011/11/01/heart-stopping-news/
(Max Keiser) "Greece is doing right thing, as I indicated in this (video) interview. The global banking system needs a reset."
http://maxkeiser.com/2011/11/01/greece-is-doing-right-thing-as-i-indicated-in-this-interview-the-global-banking-system-needs-a-reset/
-Corzine's Achievement Sheet-
(1) After being forced out as CEO of Goldman Sachs, Corzine spent a record $62 million of his own money on a US Senate campaign and won. The prior record was $28 million.
(2) During the senate campaign, Corzine refused to release his income tax return records citing a confidentiality agreement with Goldman Sachs.
(3) In 2000, Corzine denied having paid off ministers, when in fact the foundation controlled by him and his wife had paid one influential church $25,000.
(4) While Senator, Corzine decided he would rather be governor of New Jersey and spent $38 million buying the governorship.
(5) As governor, Corzine spent some $200,000 of his own money on advertisements to promote a referendum on the 2007 New Jersey ballot to borrow $450 million to fund stem cell research. The referendum was rejected although $270 million had previously been approved to build stem cell research centers.
(6) Corzine, in attempting to pass the 2007 fiscal year budget, said that he would not accept a budget that did not include a hike in the sales tax from 6% to 7%.
(7) After the legislature failed to pass Corzine's budget by the deadline of July 1, 2006, he signed an executive order that immediately closed down all non-essential state government services.
(8) Corzine lost his reelection bid to Republican Chris Christie. It takes rare talent for Democrats to lose in New Jersey.
(9) In 2010 Corzine was named CEO of MF Global and used 40-1 leverage on foolish bets on European bonds driving the company into bankruptcy.
(10) MF Global is the first company to go bankrupt in three years while still rated investment grade by rating agency S&P. The previous company was Washington Mutual.
(11) MF Global is one of very few companies ever to go bankrupt before making its first bond payment.
Someone Is Going To Jail For This: MF Global Caught Stealing Hundreds Of Millions From Customers?
http://www.zerohedge.com/news/someone-going-jail-mf-global-caught-stealing-hundreds-millions-customers
Federal Regulators have Discovered that Hundreds of Millions of Dollars in Customer Money have Gone Missing from MF Global in Recent Days
http://maxkeiser.com/2011/11/01/federal-regulators-have-discovered-that-hundreds-of-millions-of-dollars-in-customer-money-have-gone-missing-from-mf-global-in-recent-days/
Regulators Investigate MF Global for Missing Customer Money; MF Global Goes Bankrupt Before Making 1st Interest Payment; Corzine’s Achievement Sheet
http://globaleconomicanalysis.blogspot.com/2011/11/regulators-investigate-mf-global-for.html?utm_source=feedburner&utm_medium=twitter&utm_campaign=Feed%3A+MishsGlobalEconomicTrendAnalysis+%28Mish%27s+Global+Economic+Trend+Analysis%29
::::::::::::MF Global is first big US victim of Europe crisis::::::::::::
http://finance.yahoo.com/news/MF-Global-is-first-big-US-apf-590521534.html?x=0&sec=topStories&pos=3&asset=&ccode=&cmtnav=/mwphucmtgetnojspage/headcontent/main/590521534/date/asc/1/0
"In 2010 Corzine was named CEO of MF Global and used 40-1 leverage on foolish bets on European bonds driving the company into bankruptcy." It makes sense since Corzine assumed that the EU would quickly print as many Euros as necessary to bailout banks who purchased junk sovereignty debt. If nothing else, Wall Street insiders know exactly where the loyalty of national leaders lies and it lies with the large banks, not with the people they are supposed to represent. Corzine's mistake was leveraging the house on the bonds and mixing investor funds with house money. When all is said and done, Corzine will walk away with a shit-eating grin on his face just like the rest of the banksters.
::::::::::::MF Global: Comments From A Bank Executive::::::::::::
http://www.zerohedge.com/news/guest-post-mf-global-comments-bank-executive
(ZeroHedge) More from our Bank Exec friend, this time on MF Global after we tried to lay blame on Rubin, Thain and Corzine for blowing up their firms:
(Guest Post at ZeroHedge) "MF Global. They named that company right. You probably didn't see it first hand but Lehman, Bear and Merrill were doing the dumbest real estate deals "ever" in the run up to the implosion. Every real estate veteran saw it, and while AIG's CDS exposure gets airplay, bad real estate lending is at the center of the disaster. So, Merrill was toast before Thain showed up. He was just the funeral director. Citi (with its 14 off balance sheet SIV's @ $1 trillion) was an abomination in progress before Rubin arrived, the Enron of banking and each and every officer and board member should go to jail. But they won't because they are all too powerful and very politically connected."
::::::::::::Continue Reading Here::::::::::::
http://www.zerohedge.com/news/guest-post-mf-global-comments-bank-executive
Panic Behind The MF Scenes As Company Refuses To Disclose Information To Regulators Even In Death
http://www.zerohedge.com/news/panic-behind-mf-scenes-company-refuses-disclose-information-regulators-even-death
As in life, so in death. Reuters reports that "U.S. regulators are unhappy with the failure of MF Global Holdings Ltd to provide them with the required data and records, a source close to one regulator told Reuters on Monday. "So far they've been very disappointed with the cooperation in the fulsomeness of records and data from MF," the source said, noting regulators have been working with the firm since late last week. "They were supposed to be able to show us their books and they're supposed to be able to tell us what's what and where their customer funds are and how they've been segregated and protected and to date we don't have the information that we should have," the individual told Reuters."
Seriously, as Erin Burnett would say, you are already bankrupt. Just how much worse is it if you even in death you still are hiding secrets? And at this point it should be obvious to everyone: whatever MF is hiding is not something that will hurt it or much less its stakeholders for which the management team obviously never cared one iota. After all the company is already dead...
-New York Fed suspends operations with MF Global-
http://www.marketwatch.com/story/new-york-fed-suspends-operations-with-mf-global-2011-10-31
-MF Global declares bankruptcy-
http://www.marketwatch.com/story/mf-global-declares-bankruptcy-2011-10-31?link=MW_story_latest_news
I miss George Carlin: http://www.youtube.com/watch?v=gF1Ixo_faas
meee too!