November 22, 2011
— Ace The amount of money "lost" was thought to be $600 million.
But the trustee for the now-bankrupt company says the actual figure might be $1.2 billion.
As you might be aware, the FBI is investigating the company, suspicious that Corzine used client money to cover his own/the firm's bets on European sovereign debt.
In other words -- if Corzine's bets had paid off, he would have pocked the profits, since he placed those bets on his own/his firm's account.
But, the suspicion is that he used client money for this purpose, "borrowing" client funds to place the bets.
Notice that, if this is the case, had Corzine won his bets, he pockets the money; but when he loses them, it's his clients -- who never authorized this gamble -- who actually wind up losing everything.
Venture socialism, in other words.
But after weeks of reconstructing MF GlobalÂ’s books, forensic accountants from Deloitte and Ernst & Young working for the trustee concluded that the account shortfall was much greater than originally estimated. Regulators have yet to verify the new numbers. While they are expected to raise their estimate above $600 million, it is unlikely to reach the trusteeÂ’s $1.2 billion figure....
These inquiries have increasingly homed in on the theory that much of the customer money had left the firm, the people briefed on the matter said.
Regulators currently suspect that MF Global — at the time run by Jon S. Corzine, the former Democratic governor of New Jersey — improperly used customer money for its own purposes in the days before filing for Chapter 11 protection on Oct. 31.
Investigators are considering two possible situations. One is that MF Global used the money to meet trading partnersÂ’ demands for extra cash, which could come back. The other is that it was used to cover trading losses, which would mean that the money cannot be recovered.
As the trustees try to pay off creditors out of what's left of MF Global, about $3 billion remains "stuck;" it's not being released to people until the trustees make sure they have a firm accounting of how much money remains, and who has first rights to it. This is, of course, causing considerable anger among clients and creditors.
LauraW. points out that in that entire article, the name "Corzine" never appears. And it's a long article.
Thanks to RDBrewer for the tips and the Separated at Birth picture links.
Posted by: Ace at
11:27 AM
| Comments (97)
Post contains 426 words, total size 3 kb.
Posted by: McLovin at November 22, 2011 11:29 AM (j0IcY)
Posted by: SFGoth at November 22, 2011 11:30 AM (dZ756)
Posted by: No Whining at November 22, 2011 11:30 AM (UzjcV)
Posted by: Deep Beam at November 22, 2011 11:30 AM (+ZX4J)
Posted by: Vic at November 22, 2011 11:31 AM (YdQQY)
Posted by: USA at November 22, 2011 11:31 AM (6Cjut)
Posted by: Jimmuy at November 22, 2011 11:31 AM (nJEja)
Posted by: Quilly Mammoth at November 22, 2011 11:31 AM (QGryS)
Posted by: No Whining at November 22, 2011 11:31 AM (UzjcV)
Posted by: al-Cicero, Tea Party Jihadist at November 22, 2011 11:31 AM (QKKT0)
Posted by: I Am the 99% at November 22, 2011 11:31 AM (1RUF8)
Posted by: AuthorLMendez Is Offering $ To ace If He Bans Curious/Sky at November 22, 2011 11:32 AM (yAor6)
This Thanksgiving, I am thankful the Doom is Not. Quite. Here.
Posted by: Methos at November 22, 2011 11:32 AM (sOXQX)
Posted by: Andy Dufresne at November 22, 2011 11:32 AM (QKKT0)
Well put. May the bastard rot in jail and be roomed with Nancy "I'm Catholic" Pelosi very soon.
Posted by: dfbaskwill at November 22, 2011 11:32 AM (71LDo)
And hey.. where is the OWS crowd? Are they camping out on this MoFo's lawn??
Posted by: Chi-Town Jerry at November 22, 2011 11:33 AM (f9c2L)
Posted by: No Whining at November 22, 2011 11:33 AM (UzjcV)
Posted by: Jon Corzine (Jigsaw) at November 22, 2011 11:33 AM (9hSKh)
Posted by: I Am the 99% at November 22, 2011 11:33 AM (1RUF8)
Posted by: t-bird at November 22, 2011 11:33 AM (FcR7P)
Posted by: William Amos at November 22, 2011 11:34 AM (HcYmo)
Posted by: laceyunderalls at November 22, 2011 11:34 AM (pLTLS)
Christ Almighty that picture..... *hides in a corner*
there is no corner, there is only the middle...
Posted by: AuthorLMendez Is Offering $ To ace If He Bans Curious/Sky at November 22, 2011 11:35 AM (yAor6)
Posted by: No Whining
.........
When Ace finally comes out of the closet...
Posted by: Chi-Town Jerry at November 22, 2011 11:35 AM (f9c2L)
Posted by: Vic at November 22, 2011 11:36 AM (YdQQY)
Maybe it's just me but I thought that: "LauraW. points out that in that entire article, the name "Corzine" never appears. And it's a long article." refered to the quoted article, where Corzine's in the excerpt. I didn't realize Ace meant the Yahoo! article until I clicked on that one.
Posted by: Austin in TX at November 22, 2011 11:36 AM (F9Hpt)
Posted by: Fritz at November 22, 2011 11:36 AM (/ZZCn)
Posted by: Truck Monkey at November 22, 2011 11:37 AM (jucos)
Posted by: Vic at November 22, 2011 03:36 PM (YdQQY)
Ba-da-boom! Ba-da-bing!
Posted by: No Whining at November 22, 2011 11:37 AM (UzjcV)
"Profit is private, but Debt is redistributed to the unwitting!"
Posted by: Hrothgar at November 22, 2011 11:37 AM (i3+c5)
You've only had weeks of him
We had years.
Posted by: Joisey at November 22, 2011 03:35 PM (Rojyk)
44.9% voted for him in 2009, SCARY
Posted by: AuthorLMendez Is Offering $ To ace If He Bans Curious/Sky at November 22, 2011 11:37 AM (yAor6)
Posted by: Vic at November 22, 2011 11:37 AM (YdQQY)
Posted by: AuthorLMendez Is Offering $ To ace If He Bans Curious/Sky at November 22, 2011 11:38 AM (yAor6)
Posted by: Bob Saget at November 22, 2011 11:38 AM (SDkq3)
Don't forget about the Clawback feature.
The trustees can take back money from people who took their money out before the collapse of MF Global, even if those people had no inside information, but simply have the good luck to withdraw funds in a certain time period prior to the collapse.
Posted by: Ben at November 22, 2011 11:38 AM (wuv1c)
Some character from the God awful "Saw" flicks
Posted by: No Whining at November 22, 2011 11:39 AM (UzjcV)
It's a doll popularized by the "Saw" movies. Here's such a clip.
The guy who plays "Jigsaw" in the Saw movies, Tobin Bell, might be how Corzine looks after he spends a few years in a federal pound-me-in-the-ass prison.
Posted by: Kratos (Ghost of Sparta) at November 22, 2011 11:41 AM (9hSKh)
OT:
PPP(D) says folks dont want Giffords to run
Voters in the state have a very positive opinion of Gabrielle Giffords, 61/17. SheÂ’s seen favorably by Democrats (84/7), independents (49/15), and Republicans (46/26) alike. Despite GiffordsÂ’ popularity there is significant doubt about whether she should run for reelection though- 32% of voters think she should seek another term in the House while 46% think she should not and 22% are unsure. ItÂ’s hard to imagine Giffords losing if she does run again given her popularity and the fact that she managed to get reelected in the tough climate of 2010, but clearly there is some concern about her ability to serve.
Posted by: AuthorLMendez Is Offering $ To ace If He Bans Curious/Sky at November 22, 2011 11:41 AM (yAor6)
Posted by: USA at November 22, 2011 11:41 AM (6Cjut)
Posted by: Vic at November 22, 2011 11:42 AM (YdQQY)
Posted by: No Whining at November 22, 2011 03:39 PM (UzjcV)
1st one was great, the rest sucked ass
Posted by: AuthorLMendez Is Offering $ To ace If He Bans Curious/Sky at November 22, 2011 11:42 AM (yAor6)
Check link here:
19 Oh well. At least there's no long term problem here.
It seems the CME is supposed to have guaranteed that the money was actually there, but there may be some nuance I'm missing (the same sort of nuance that made the voluntary Greek bond haircut a non-default event for CDS purposes).
Posted by: Methos at November 22, 2011 11:42 AM (sOXQX)
Posted by: © Sponge at November 22, 2011 11:43 AM (UK9cE)
The first one was okay as was the third film, but the rest are just gore-fests with no redeeming value.
Posted by: Kratos (Ghost of Sparta) at November 22, 2011 11:43 AM (9hSKh)
Posted by: scottythrust at November 22, 2011 11:44 AM (VTeUD)
Posted by: BIG ROB at November 22, 2011 11:44 AM (hr33h)
1st one was great, the rest sucked ass
Posted by: AuthorLMendez Is Offering $ To ace If He Bans Curious/Sky at November 22, 2011 03:42 PM (yAor6)
Haven't seen a one of them. the commercials were enough to convince me not to. And yet, I offered my opinion.
It's like commenting on a thread without having read others' comments.
I... we... were born to do this!
Posted by: No Whining at November 22, 2011 11:44 AM (UzjcV)
ready for the Ha-Ha?
------------------------------
Everyone is excited about the fact that President-elect Barack Obama is talking with New York Senator Hillary Clinton about the prospect that she might serve as Secretary of State. But the big news from inside the transition process is the speculation that New Jersey Governor Jon Corzine might be selected for the essential economic position of Secretary of the Treasury.
Corzine certainly has one of the "qualifications" that official Washington demands. He is a former senior partner with Goldman Sachs, the firm that has contributed so many Cabinet secretaries and administration insiders over so many years that it is referred to as "Government Sachs."
But Corzine is not your typical Goldman-Sachs man.
After he was elected to the US Senate from New Jersey in 2000, Corzine searched out Minnesota Senator Paul Wellstone. The new senator from New Jersey informed the iconic liberal Democrat -- who was often at odds with his own party's leadership -- that he hoped they could work together on social and economic justice issues.
Corzine, a very wealthy former Goldman-Sachs chairman and co-CEO, might have seemed like an unlikely economic populist. But he soon made the senator from Minnesota a believer. Indeed, when we were sitting in his office one afternoon in 2001, talking about the senators who could be counted on to stand up to the new Bush-Cheney administration, Wellstone said, "Put Corzine of the list. He's going to surprise people.
During his five years in the Senate, Corzine did, indeed, side with Wellstone (until the Minnesotan's death in 2002) and with the left wing of the Democratic Senate Caucus -- sponsoring the "Start Healthy, Stay Healthy Act" to expand access to health care for children and pregnant women and a proposal to lower the marginal tax bracket from 15 percent to 10 percent for low-income wage earners. Corzine worked with Wellstone and Massachusetts Senator Ted Kennedy to defend Pell Grants and entitlement programs that were under attack, he criticized schemes to privatize Social Security and played a critical role in passing legislation designed to crack down on corporate malfeasance.
The senator from New Jersey promoted regulation of major industries (chemical and nuclear power, in particular) and he was one of the few senators to question blank-check giveaways to the airline industry in aftermath of the September 11, 2001, attacks.
Corzine also voted against authorizing Bush to take the country to war with Iraq and got a whole lot of other issues -- not all of them, but a whole lot -- right.
It is rare that someone with Corzine's record even gets on a list of prospective Treasury officials.
Corzine may or may not be the perfect pick. But the fact that he is being considered is one more sign that a change -- maybe even a "change we can believe in" -- is coming to Washington.
After all, when was the last time that a potential nominee for the Treasury post was being talked up by the head of the Service Employees International Union. On Thursday, Andy Stern told reporters he thought the governor's strong economic credentials and government experience make Corzine an appealing prospect. Stern's right.
-The Nation
November 2008
Posted by: Soothsayer at November 22, 2011 11:45 AM (sqkOB)
The funny thing is that the money was invested in soverign debt instruments in anticipation of more bailouts.
Posted by: Vashta Nerada at November 22, 2011 11:45 AM (pT3XC)
Posted by: Fightin' Joe BIden at November 22, 2011 11:46 AM (SYrAh)
Posted by: Blacque Jacques Shellacque at November 22, 2011 11:47 AM (1NiX/)
Posted by: blaster at November 22, 2011 11:48 AM (7vSU0)
Posted by: Vic at November 22, 2011 11:48 AM (YdQQY)
After all, when was the last time that a potential nominee for the Treasury post was being talked up by the head of the Service Employees International Union. On Thursday, Andy Stern told reporters he thought the governor's strong economic credentials and government experience make Corzine an appealing prospect. Stern's right.
-The Nation, November 2008
Posted by: Soothsayer at November 22, 2011 03:45 PM (sqkOB)
An when was the last time that a potential nominee for the Treasury post was found out to have broken the law... oh, wait...
Posted by: Turbo Timmuh - upgrade now, beeyotches! at November 22, 2011 11:49 AM (UzjcV)
Posted by: Blacque Jacques Shellacque at November 22, 2011 03:47 PM (1NiX/)
I believe he is in line right behind Eric Holder. Somewhere around 2087, I think.
Posted by: Vashta Nerada at November 22, 2011 11:49 AM (pT3XC)
Posted by: Adam Smith's Invisible Pimp Hand at November 22, 2011 11:50 AM (tKFT6)
OMG they're fucking this country.
Posted by: © Sponge at November 22, 2011 11:50 AM (UK9cE)
Posted by: blaster at November 22, 2011 03:48 PM (7vSU0)
And also because they are probably involved in similar scams to one degree or another.
Posted by: ErikW at November 22, 2011 11:51 AM (vH+hB)
Go look at the votes on TARP and every debt limit increase.
Democrats aren't the only bought politicians.
Posted by: Methos at November 22, 2011 11:52 AM (sOXQX)
You'll recall back in August of this year it was rumored that Corzine would take over Geithner's position.
A spokesflack for Corzine said this at the time: "
"This has all been idle speculation. ItÂ’s just another example of how the 24-hour news cycle, when it has nothing else to report, finds a bunch of coincidental evidence. [Corzine] has been working 90-hour weeks and traveling the world to try to revive MF GlobalÂ’s standing."
heh
Posted by: Soothsayer at November 22, 2011 11:52 AM (sqkOB)
Posted by: Soona at November 22, 2011 11:52 AM (CpbKk)
CME Group Statement on MF Global Segregation Violation
SIPIC
Posted by: dazed and confused at November 22, 2011 11:56 AM (oZfic)
Posted by: That Rachel Maddow Fellow at November 22, 2011 11:57 AM (d0Tfm)
JP Morgan is the corporation reputed initially to have absconded with the money that "disappeared" with the downfall of MF Global. Just in time for the Thanksgiving Jingle Bells song by Morgan's uncle (Mark Steyn piece).
From the headline sidebar, Frum's for bail-outs and more spending for more debt and MORE KEYNESIAN ABUSES of our national economy, as if low interest rates benefit those Americans on a fixed income, or actually make it to local banks for local economic growth loans to small businesses. For all his feigned concern for the little guy, Ol' Davie Frum is twiddling away what's left of his Bush era prestige ("sanity"), whining in the NY Magazine about the depressing Tea Party white extremists who shouldn't be in the Republican Party because the bigots lack both compassion and education, grasping at whimsical libertarian economic theories, blah blah blah because no one loves Frum any more. So it's mean, poor and stupid Tea Party Republicans ruining America and making it difficult for the liberal rich corporatist "good" neoconservative Republicans to get (re)elected and keep their party power for themselves, being our betters and all. Of course Frum scoffed at Cain, though the two share a mutual kiss ass admiration for the corrupt heir to Ayn Rand, Alan Greenspan and the wonderfully corrupt most powerful institution in the world, the Federal Reserve.
Posted by: The Pirates Your Mom Feared at November 22, 2011 12:04 PM (lpWVn)
X "has been working 90-hour weeks and traveling the world to try to revive MF GlobalÂ’s standing."
Sounds familiar, like Hillary answering the 3am calls and traveling the world trying to revive democracy's global standing, or at least "reset" her potus candidacy.
Posted by: David Frum at November 22, 2011 12:09 PM (lpWVn)
Posted by: Leo Ladenson at November 22, 2011 12:16 PM (mAm+G)
How am I going to get Gov. Corzine confirmed as Treasury Secretary if those little rumors in the media are put out there
Posted by: King Barry the SCOAMF at November 22, 2011 12:17 PM (Y+DPZ)
Posted by: Marie at November 22, 2011 12:20 PM (H50jQ)
X "has been working 90-hour weeks and traveling the world to try to revive MF GlobalÂ’s standing."
Makes it sound like he's not only talking with world leaders on MF Global's behalf, but single-handedly manning the phone banks, data entry and mailroom as well.
Either that or circling the globe on a company G5 while pursuing his personal quest to play 18 holes on every golf course on the planet.
Posted by: IllTemperedCur at November 22, 2011 12:23 PM (G+B5p)
But hey, you know what we need? More regulation... just to tell these stupid motherfuckers to not steal...
Posted by: Brock O'Bama at November 22, 2011 12:52 PM (n1JN0)
Posted by: David at November 22, 2011 01:22 PM (5ANyb)
Posted by: spartanwoman at November 22, 2011 01:32 PM (B+w0T)
Posted by: befuddled at November 22, 2011 01:36 PM (xJU23)
Posted by: steevy at November 22, 2011 01:51 PM (7WJOC)
Wow i really found this to be an interesting read; thanks for sharing
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There are so much to learn from your post here, Uma, well done.
Posted by: Being George Washington ePub at November 22, 2011 06:36 PM (05OZP)
video to flash converter
Posted by: nanonu at November 23, 2011 07:06 AM (EcjQQ)
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Really is this any different than what Obama did with Solyndra ?
BTW Ace check your twitter Michael Mann is going nutz over the climategate emails.
Posted by: William Amos at November 22, 2011 11:29 AM (HcYmo)