Jon Corzine is a thief.

[ChairmanAgnostic]

It must be something they teach in Goldman Sucks.

A little history. M(other) F(ucker) Global was a small player, never making big news, never taking big risks, until they reached out and hired Corzine as their top exec.
Under his direct orders, they embarked on one wild ride. But, they needed help, the kind that Corzine was perfectly suited to give.
--
"The proposed rule would have restricted a complicated transaction that allowed MF Global in essence to borrow money from its own customers. Brokerage firms are allowed to use customers’ money to earn interest, not unlike banks, but this rule would have outlawed using customer funds for a loan to the firm itself.

While such financing is not unknown on Wall Street, it carries substantial risk. An outside lender would require a firm like MF Global to produce strict accounting for a loan. Without that oversight, regulators worried that firms could use such internal customer money inappropriately, including bolstering the business in hard times. The proposed rule would have affected several dozen other financial firms.
--
http://dealbook.nytimes.com/2011/11/03/as-regulators-pressed-changes-corzine-pushed-back-and-won/


The rest was history. He raided customer accounts, used their funds to pay for his high risk gambles, mainly in investments based on Euro-debt.

---
Jon S. Corzine has resigned from his posts at the embattled brokerage firm MF Global, the company announced on Friday.

Mr. Corzine, the firm’s chairman and chief executive, will not seek his $12 million severance from MF Global, which filed for bankruptcy on Monday, according to the company’s statement.

The resignation capped a disastrous week for Mr. Corzine, as he saw MF Global lose two-thirds of its market value, file for bankruptcy and face a handful of federal investigations into more than $600 million in missing customer money. The decision also signaled a rapid downfall of what was supposed to be Mr. Corzine’s grand return to Wall Street — a comeback that began in early 2010, after a roughly 10-year sabbatical that he spent in politics.
---
http://dealbook.nytimes.com/2011/11/04/corzine-resigns-from-mf-global/

How sweet of him. He refuses a severance package from the company he drove into bankruptcy. After stealing his clients' money and risking it in gambles so crazy that it is doubtful that his clients would have given him permission. Luckily, he beat up on the federal regulators to prevent having to report on his risk taking.

It is pure and simple. Jon Corzine is a thief. He got caught. And he just lawyered up.

Hint, hint, Wall Street. THIS is why we occupy.

[Carolina]

1. and to think he was the

DEMOCRATIC Senator from NJ.

Too bad the near fatal car crash in 2007 didn't humble him!

Rat bastard thief. He, Dems like him with all those Goldman Sachs tentacles are THE PROBLEM!

[abelenkpe]

2. Has he been arrested? nt

[ChairmanAgnostic]

5. not yet, but the writing's on the wall when

hundreds of millions are missing from client accounts, and the losses may total in the billions.

[spanone]

29. he hasn't been charged with anything...he misplaced 600 million dollars, it happens

c r i m i n a l

[tularetom]

3. All true but the Obama WH is crawling with his old golfing buddies

So I don't really expect any consequences to him for his actions.

[vi5]

7. +1,000,000,000

The rot has taken root and taken hold at all levels. It's going to be impossible to clean it out in our lifetimes.

[MedicalAdmin]

30. Not using safe, gentle, reasonable, normal methods.

When rot sets in the only thing that works is to cut the tree down before it falls down and does even more damage.

[Hassin Bin Sober]

4. The "smartest guys in the room"

This just furthers my theory on GS - they are a huge, well connected self fufilling prophecy that uses its size and political clout to draw water to its own mill.

Put these guys in another position in another company, and they have just as much chance of fucking it up and losing their (investors) shirts as any other gamblers.

Not so easy when you can't have the fed jump in and pay you off on your bad bets, eh Johnny?

[vi5]

6. Ugh....my former Governer and Senator...

I remember getting into an argument with someone on DU over Corzine.

After McGreevey resigned, Richard Codey stepped in as Acting Governer. He was a good, decent guy, who was a good governer. He should have run and he probably would have run. But Corzine wanted it, and he had the money men behind him and that was and is more important to the Democratic party than anything else. So Codey was pushed aside so Corzine could get in there. I argued that we would come to regret pushing Codey aside for them to annoint Corzine and his big bank account. Someone (I forget who) chastized me and said that was not the case and that Corzine would be good for NJ and good for the party.

Yeah...right.

[rucognizant]

33. Yeah right is RIGHT!

In 2004, my son had a problem with his landlord.......he had been injured and was trying to move out to come home with me. Someone planted white powder on the bureau........my son called the police.and THEY accused me of being his pusher..............................( yes my son had drug problems I was trying to geyt him into a rehab. Squeeky clean me, my integrity an obstacle in today's society. ( I heard Jim Merkle, Radical Simplicity speak yesterday HE earned his grubstake selling nasty weapojns artound the world to enable him to reform and live by a small footprint. ( WHY DIDN'T I THINK OF THAT? MY FOOTPRINT IS LARGER THAN HIS BECAUSE SS I8NCOME DOESN'T GIVE ENOUGH INCOME TO BUY ALTERNATIVE ENERGY!)Anyway Corzine's ( Senatorial) office was right around the block.. he never responded to my plight. Senator Laughtenburg at the other end of the state, DID offer some help . We were packing stuff when McGreavy made his announcement.

[DainBramaged]

8. Shouldn't the word 'ALLEGED' be considered here

after all, we at the DU NEVER jump to conclusions...........

[LiberalEsto]

9. No wonder he got elected governor of NJ

It's virtually a job requirement

[uponit7771]

10. I heard this yesterday and thought if 1/4 of this is true those bastards should go to jail. Big Bank

...do this crap all the time but they have our houses etc as they assests

[ChairmanAgnostic]

11. If only our DOJ had a spine. Then again, he is a D

so therefore, fair game.

[tcaudilllg]

12. Stupid... nothing wrong with betting of European bonds.

As someone familiar with finance, I'm disappointed at the reactivity here.

[MadrasT]

15. However...

...there is something VERY wrong with being leveraged 40:1 (or 80:1 depending which reports you believe) and using your customers' money to cover your margin calls. Last I heard, that kind of commingling is straight up illegal.

Bad bets? No problem. Using customers' funds to cover them? Big fuck problem.

[tcaudilllg]

20. Why would he do that?

I understand there is a link between Left-wing business and high risk -- left-wing entrepreneurs often take big risks using the corporations as a shield, pocket high salary earnings and start over when they fail -- but why would he risk his freedom on such a maneuver?

OK I'm reading this, it says he bet on the debt of nations. Meaning, he bought bonds. It looks like he made investments that didn't pan out before his company ran out of operating capital, and he dug into customer money to try to keep it afloat. He seems to have bet on the will of the people in those nations... and lost. How unfortunate. Perhaps that's why he felt justified in tapping his clients' capital.

[dotymed]

28. Being from Goldman Sachs, I'm sure he knew the deal on Greece.

Sachs was hired by the "conservative government" before they were replaced, to hide the massive debts of Greece. That way they could keep lying to the European Union. When the Socialists took power the real debt was disclosed which made the Socialists look bad. Sounds kind of familiar.

[Liberal_in_LA]

13. k&r

[DainBramaged]

14. Well you're wrong, just another hatchet job to burn a Democrat

http://www.bloomberg.com/news/2011-11-04/mf-s-missing-client-funds-said-to-be-located-in-jpmorgan-custodial-account.html

[jeff47]

16. Sorry, JP Morgan just shot that story down.

They don't have the missing money. http://www.cnbc.com/id/45167221

Not to mention your story is pretty obviously wrong. They couldn't find the money for days when it was sitting in a single bank account where it's supposed to be? Yeah, not so much with the "remotely believable".

[DainBramaged]

18. Who ya gonna believe?

Oh wait.........:think:

[jeff47]

19. You are seriously putting more weight behind an unsourced report that doesn't make the slightest

bit of sense? You're seriously arguing that MF Global lost $600M for several days because it was in the account it was supposed to be in?

Ya know, MF Global gave me $10M before they went belly up. If you help me move it out of Nigeria by paying the taxes on it, I'll let you have half of it! That's $5M directly to you just for sending in a small $10,000 check!

And just in case you think I'm being serious, that's :sarcasm:.

[former9thward]

26. Corzine has hired a top criminal attorney.

Hmmm. I wonder why.

[Kaleko]

17. No, it's you who is wrong in trying to defend a Dem no matter what they've done!

UPDATE: JPMorgan Denies That It's Holding The Missing MF Millions

Read more: http://www.businessinsider.com/found-the-missing-mf-mil...

And this from CNBC:

JP Morgan Chase shot down a report that it was holding hundreds of millions of dollars in missing MF Global client funds.

Read the rest: http://www.cnbc.com/id/45167221

[DainBramaged]

21. How do you know what was fucking done

judge jury and executioner, I love the purity squad that is the DU

Go chase another Charlee Sheen story

[Kaleko]

22. What?

:crazy:

[SixthSense]

23. This much we do know

http://finance.yahoo.com/news/Regulator-gave-10k-to-NJ-Dems-apf-3930599725.html?x=0

"Gary Gensler, the regulator overseeing the investigation of Jon Corzine's collapsed securities firm, built close ties to Corzine as they rose through the ranks of Goldman Sachs. Later, they collaborated on Capitol Hill to pass an anti-corporate fraud law."

The reason this blew up as it did is because he was in cahoots with his company's regulator, who was an old Goldman Sachs buddy of his. The corruption level is through the roof here.

[stockholmer]

27. knee-jerk covering for scumbag who's also a Dem, to wit: REPORT: MF Global Admits Using Client Money

http://www.businessinsider.com/mf-admits-to-using-clients-money-federal-official-says-2011-11

MF Global admitted to using its customers' money in its troubled last days before announcing bankruptcy, a federal official has told the AP. http://finance.yahoo.com/news/Official-MF-Global-admitted-apf-602167470.html A MF Global executive made the admission to the federal official on a call this morning, the AP reports.

This morning, CME Group confirmed that MF Global had not properly separated its company funds from customer's money while doing business, http://www.businessinsider.com/cme-group-confirms-mf-global-is-not-in-compliance-with-segregating-client-money-2011-11 and did not adhere to other rules set by the Commodities Futures Trading Commission. It is currently conducting its own investigation of the company. http://dealbook.nytimes.com/2011/11/01/cme-investigating-mf-global/

Last night, DealBook reported that federal regulators were investigating the futures brokerage for hundreds of millions of dollars worth of money missing from its clients accounts http://dealbook.nytimes.com/2011/10/31/regulators-investigating-mf-global/ (the latest figure is around $600 million to $700 million). Although it was initially surmised that the discrepancy could have been due to poor record-keeping and accounting methods, with the latest admission it seems like that's not the case anymore.

One of the main principles (and laws) of financial firms are that it is suppose to keep the company's money separate from its customer's money. The use of money in clients' accounts is fraud, and will have even more serious implications for MF Global besides its looming bankruptcy proceedings.

If what the federal official is telling the AP is true, someone is going to jail.

snip


-------------------------------------------------------------------------

UPDATE: JPMorgan Denies That It's Holding The Missing MF Millions
http://www.cnbc.com/id/45167221


JP Morgan Chase shot down a report that it was holding hundreds of millions of dollars in missing MF Global client funds. JP Morgan told CNBC Friday that, much like other banks, it has been holding MF funds and awaiting instructions from the bankrupt company's trustee. The bank said the funds are not the missing client funds and the account has always been "transparent" to MF and its trustee.

Government rules require securities firms to keep clients' money and company money in separate accounts. Violations can result in civil penalties. Bloomberg had reported earlier that as of Oct. 31, the JPMorgan account had $658.8 million in it, citing a person with knowledge of the matter.

Estimates on the missing client funds have ranged from $1 billion to $700 million. MF Global's chief executive, Jon Corzine, resigned from the brokerage firm earlier Friday.

Under Corzine's leadership, MF Global bet $6.3 billion on debt issued by Italy, Spain and other European nations with troubled economies. Those bonds have lost value in recent weeks, as fears have intensified that some European countries might default.

snip

[freshstart]

24. After what he did as Governor...I agree.

He invested MILLIONS of NJ State Pension funds in Lehman Brothers, right before Lehman collapsed. And guess who was running the show? George Walker, George Bush's cousin. And, Corzine had to know that, Walker came from Goldman Sachs where Corzine was. I'm pretty sure GW's brother Jeb was at Lehman too.

Corizine knew what he was doing when he allowed the pension system to be robbed.

http://www.thestreet.com/markets/hedgefunds/10286680.html

http://www.tampabay.com/news/business/article805295.ece

http://www.nj.com/news/index.ssf/2008/09/new_jersey_may_sue_lehman_over.html

[formercia]

25. Corzine broke the 11th Commandment:

Don't get caught.

He's road kill now.

[freshstart]

31. They say if he avoids charges, he

may get civil suits. "He also has emerged as a key lobbyist against proposed rules that would have restricted firms such as his from, among other things, borrowing customer money to make investments."

http://www.nj.com/news/index.ssf/2011/11/even_if_corzine_avoids_charges.html

[ThatsMyBarack]

32. Corzine....

See your doctor for an erection lasting more that four hours!

(That name just sounds like a weird drug to me.)

[alp227]

34. When is Corzine gonna turn over to the Wall Street Republican Party? nt