MF Global Roundup: the [so-far] Great Escape of "Teflon Don" Corzine; Bankruptcy Shenanigans Expose

Economic Policy Journal ^ | April 22, 2012 | Bob English

[SatinDoll]

Ahead of Tuesday's Senate Banking Committee hearing on MF Global, we present the April 20 installment of Capital Account with Lauren Lyster, featuring futures industry veteran guest, Mark Melin. Ms. Lyster pulls no punches in the opener:

Has the case really gone cold? Or, are those who are in charge of the investigation, the "regulators" and the trustees, simply spraying teflon on every piece of sticky evidence that could lead to criminal prosecutions--and, ultimately--the recovery of stolen customer money?

We wish that MF Global were just a one-off affair--a bad apple, if you will. Unfortunately, it seems more likely to us that this is another milestone in the history of what we see as criminality, which has swept through the financial services industry, like some sort of Medieval Black Plague--the Black Death for capital formation. It seems the only time people are held accountable anymore, is when they commit crimes that affect the super-rich.

Bernie Madoff is a prime example...Madoff is securely behind bars, but Jon "Teflon Don" Corzine is busy ordering carmel-Frappuchinos at the local Starbucks as he goes to shop for office space in New York...bothered only by the low din of discontent emanating from the blogosphere (and shows like this, Capital Account). What a nuiscance we must be to the new God-fellas of Wall Street...

[snip]

[SatinDoll]

"...JPMorgan, Citigroup and Bank of America were part of a syndicate of 22 banks that provided MF Global with an unsecured $1.2 billion revolving credit line that required no posting of collateral, despite the company’s string of losses and weak credit rating..."

It is beginning to look like MF Global was a dumping ground for Euopean debt: per Anne Barnhardt at http://www.barndardt.biz

"The contention that Corzine was placed at MF in order to use MF (specifically MF's CLIENTS) as a garbage dump for bad European paper makes a hell of a lot of sense."

So, where did all the money go? Is it parked in off-shore accounts for the Democratic Party to use during the upcoming national election?

[NormsRevenge]

not to worry , all that dough will be coming back in the form of small untraceable contributions..

never mind there is still supposedly an ongoing investigation into the millions of 2008 money from foreign donors , also involving small donations that skirted the regs.

a nation can not stand long when it is run by scoundrels and scalawags.

Things Change, Things stay the same .. and Hope rhymes with Dope.