I suggested yesterday we keep an eye on the accounting. Seems today things are getting more interesting. Zero Hedge:
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?
Perp-walk?
Heh. More likely he’ll get a recess appointment somewhere in the Administration — then sent overseas in some official capacity so that we can be told he can’t be reached.
That’s just the way they roll.
This is sorta scandalous.
youcks, sure hope none of the customers takes the theft personally and seeks to reek their own revenge on the offenders. That would be too much like life, when this is only business progressive style.
But… but CNBC told me that MF has repeatedly insisted that all customer funds are safe!
I think it was Bunker Hunt who once said, “A billion dollars ain’t what it used to be.”
There’s an anecdote about two different hearing rooms in a Chicago courthouse. In one court, a man was being sent to prison for passing a $50 bad check. At the same time in the other court, a man who embezzled $250K was sentenced to probation.
Even if a billion ain’t what it used to be, I still think this is too much money for someone to actually do some time.
Corzine’s gazebo might become occupied by Jamal and Bruno, if justice is correctly served.
finance.fortune.cnn.com/2011/11/02/jon-corzine-mfglobal-to-jail/
Stupid Droid.
http://www.finance.fortune.cnn.com/2011/11/02/jon-corzine-mfglobal-to-jail/
Arrfght. Somebody fix that, thanks!
Corzine’s gazebo might become occupied by Jamal and Bruno
Would he have a problem with that? Or am I thinking of the NJ Governor before him?
Just the morning, I saw something about how they totally didn’t steal anything! It’s like right over here!
99% of lying ass lawyers give the other 1% a bad name.
I don’t even attempt to link from the Droid.
http://finance.fortune.cnn.com/2011/11/02/jon-corzine-mfglobal-to-jail/?iid=SF_F_LN
Guess who’s got his first game ever as the referee in a high school football game tomorrow?
It damned sure ain’t Barack Hussein Obama.