[L.A. Times] As the first former U.S. senator to be subpoenaed by Congress in more than a century, Jon Corzine testified Thursday about the "last chaotic days" of MF Global, the trading firm that declared bankruptcy under his watch.
Corzine said he was "stunned" to learn that the firm could not locate hundreds of millions of dollars in client money in the days before the firm's collapse, and said he had no idea where the money had gone. He's lying, of course.
Corzine was chief executive of MF Global when the firm filed for bankruptcy protection Oct. 31. He resigned from his post five days later.
"I simply do not know where the money is or why the accounts have not been reconciled to date," he said in testimony before the House Agriculture Committee. Principals at hedge funds, brokerages, and trading houses always know, minute to minute, where the money is. It's what they do for a living. They expend substantial resources to make sure they know where the money is and just as (or more) importantly, how liquid they are, minute to minute. Of course he knew.
Client money should have been held in segregated accounts separate from those involving the firms' own trading activity. The disappearance of the money has led to speculation that MF Global used customer funds to shore up risky bets on European sovereign debt.
"I never intended to break any rules," Corzine said when asked whether he had ever authorized a transfer of customer funds from segregated accounts. Ah, the 'Holder' defense...
"There were an extraordinary number of transactions during MF Global's last few days, and I do not know, for example, whether there were operational errors at MF Global or elsewhere, or whether banks and counterparties have held onto funds that should rightfully have been returned to MF Global," Corzine said.
Corzine said he "strongly advocated" the trading strategy that led MF Global to accumulate more than $6 billion in holdings in European sovereign debt. But he said the company's sovereign debt positions were not the cause of the firm's collapse. Zero Hedge explains how thoroughly we're boned because of MF Global's collapse.
Posted by: Fred ||
12/09/2011 00:00 ||
Comments ||
Link ||
[1 views]
Top|| File under:
#1
You will never hear me say "DUH, I lost a BILLION dollars".
#4
Sure.... happens to me all the time. Why just the other day I misplaced a couple trillion dollars - still haven't found it. It's no big deal.
You have to understand that to people like him - a billion is not that much - what we might think of a hundred dollars. A billion here.... a billion there... etc...
#5
So where did all the money go? Not just MFG's, but all the other losses. Soros? Putin? Kimmy? Bush?
Posted by: Bobby ||
12/09/2011 8:33 Comments ||
Top||
#6
Here's one definition of fiduciary responsibility - "In the handling of money and when one acts as a corporate or individual trustee, there is a fiduciary responsibility owed to the principal party. It is defined as a relationship imposed by law where someone has voluntarily agreed to act in the capacity of a "caretaker" of another's rights, assets and/or well being. The fiduciary owes an obligation to carry out the responsibilities with the utmost degree of "good faith, honesty, integrity, loyalty and undivided service of the beneficiaries interest." The good faith has been interpreted to impose an obligation to act reasonably in order to avoid negligent handling of the beneficiary's interests as well the duty not to favor ANYONE ELSE'S INTEREST (INCLUDING THE TRUSTEES OWN INTEREST) over that of the beneficiary. Further, if the agent should find him/herself in a position of conflicting interests, the agent must disclose the dual agency (acting for two parties at the same time) or risk being accused of constructive fraud in regards to both or either principals."
Notice the resemblance? Things don't seem to change.
#8
They must have been in his pants when he took them to the cleaners. However, Corzine should be reassured that where he is going, money will be the least of his worries, except in buying the occasional Snickers or bar of soap from the snack bar.
Posted by: Frank G ||
12/09/2011 11:08 Comments ||
Top||
#10
Yup, I figure he'll never spend a day in the Graybar Hotel. He'll either get a pardon or he'll have a mysterious RAB-style 'suicide' with one behind each ear...
Posted by: Steve White ||
12/09/2011 11:14 Comments ||
Top||
#11
Has he checked under the cushions on his sofa ...
Posted by: Cincinnatus Chili ||
12/09/2011 12:38 Comments ||
Top||
#13
He said he never told his subordinates to use client money, but if he did he didn't mean it.
Posted by: Deacon Blues ||
12/09/2011 14:33 Comments ||
Top||
#14
And he'll never do it again.
Posted by: Steve White ||
12/09/2011 15:22 Comments ||
Top||
#15
There was commentary going around that Corzine was brought into MFG primarily because of his "Rolodex", and that he received waivers for a required certification(?).
It wouldn't be the first time someone was brought in at the top solely due to having high-powered connections.
#17
Pappy, Corzine had more than a Rolodex. He worked in finance for several decades and had a resume with CEO of Goldman Sachs on it, as well as Senator and Governor. He lost a power struggle at Goldman, but subsequently made nearly half a billion out of his retained stock position when GS went public.
Moreover, as Senator he co-authored Sarbanes-Oxley, the legislation which specifically requires CEOs of publicly traded companies (such as MF Global) to personally attest to the accuracy of financial statements.
Much more than a Rolodex - and much more culpable.
#18
The traders I know can tell you where every penny is that they've invested on someone else's behalf. They have to, it's not only the law (although Mr. Corzine did have a 'D' behind his name at one point so that might not count), but it's just good business.
Posted by: Mullah Richard ||
12/09/2011 17:46 Comments ||
Top||
#19
Corzine had more than a Rolodex.
True. But he had been out of the industry for years. I don't think he was brought into MFG for his financial acumen.
#20
I'm not so sure that wasn't in fact part of the reason they sought him. The Goldman Sachs IPO was controversial and hugely successful thanks to him, even if he left just before the actual IPO was launched. He lost out to co-CEO Paulson in an internal power play over bailing out a hedge fund that threatened to bring down the financial system - Paulson was a white shoe, well-connected investment banker (read: powerful wealthy white guys doing deals in private clubs) and hated Corzine's greater appetite for risk and the far harder to control public markets.
It was exactly Corzine's appetite for big bets - which shaped GS' highly successful IPO despite Paulson's opposition - that would have attracted MF Global, especially in the early days after he lost the election to Christie, when the outcome of TARP etc. was up for grabs.
#21
As lotp pointed out, Mr. Corzine is one of the authors of Sarbanes-Oxley. I am not a lawyer, but as I understand it, S-Ox REQUIRES CEOs to know where the money is, and to certify where it is. A few days ago, somebody here pointed out that he had admitted under oath that he had violated S-Ox by not knowing.
Of course, given his associations, it is unlikely he will be tried and convicted, and even if he is, he is unlikely to spend any time behind bars.
Posted by: Rambler in Virginia ||
12/09/2011 19:00 Comments ||
Top||
#22
Joe Jr. was the one Joe Sr. was lining up for the presidency. John F. was the stumblef@@k backup.
#24
If I did my math right, if he serves one second per each dollar lost of $1.2billion, he would be in jail for 38 years.
He is public sector, where a billion is a note and money can be printed. In the private sector positions such as CEO do have rank, but are really positions of responsibility.
(Xinhua) -- U.S. President Barack Why can't I just eat my waffle? Obama on Wednesday defended the government's move to delay the approval process of a proposed oil pipeline between Canada and the United States.
Appearing at a joint presser with Canadian Prime Minister Stephen Harper after their meeting at the White House, Obama said it is important for the U.S. to examine the project "rigorously," and the project's environmental impact must be "properly understood." Is there something that makes this pipeline different than the dozens of others that criss-cross our country? Too bad the Pubs aren't asking that question loudly, since we all know why Bambi is trying to stop this one. Make the Democrats explain why the other pipelines are okay and this one isn't.
U.S. State Department last month delayed potential approval of the Keystone XL pipeline until 2013, falling after the presidential election due to intense opposition from environmentalists as well as public officials in the United States.
The 7-billion-U.S.-dollar pipeline proposed by TransCanada, an energy giant based Canada, would run 1,700 miles (2,720 km) to connect Canada's oil sands to refineries around Houston and the Gulf of Mexico.
"We've seen Democrats and Republicans express concerns about it. Name one known Republican who has done so...
And it is my job as president of the United States to make sure that a process is followed that examines all the options," said Obama.
There are no political considerations for the administration's delay of a decision on the pipeline until early 2013, insisted the president, who is seeking reelection next year.
Republicans are pressing Obama to accelerate the project, saying the pipeline could significantly reduce U.S. dependence on Middle Eastern oil while providing thousands of jobs.
Meanwhile, ...back at the bunker, his Excellency called a hurried meeting of his closest advisors. It was to be his last. They discussed the officers's efficiency rating system... Republican leaders are also mulling including accelerated approval of the pipeline in legislation extending a payroll tax cut that is set to expire on January. 1.
However, a good lie finds more believers than a bad truth... Obama opposed linking the pipeline to payroll tax cut, saying it should not be held hostage by any other issue and he would reject any such effort by congressional Republicans.
Posted by: Fred ||
12/09/2011 00:00 ||
Comments ||
Link ||
[3 views]
Top|| File under:
#1
Republicans are the stupid party. The democrats are the EVIL party. Evil trumps stupid all the time. Alert the STUPID GOP.
#2
The 7-billion-U.S.-dollar pipeline proposed by TransCanada, an energy giant based Canada, would run 1,700 miles (2,720 km) to connect Canada's oil sands to refineries around Houston and the Gulf of Mexico.
#3
then you would need multiple pipelines and a distribution network for the refined product to get it from that refinery to market Skid.
Posted by: abu do you love ||
12/09/2011 4:32 Comments ||
Top||
#4
They can send it all south on trucks to rail terminals, it'll just cost more money.
Of course, part of the cost is trains and trucks colliding with home-folks midget electric cars. And the diesel exhaust. A few spills, maybe a big fire or two...
Posted by: Bobby ||
12/09/2011 8:26 Comments ||
Top||
#5
Prudent while unemployment is low, the economy is growing nicely and the dollar is stable.
#6
When the Big Inch and Little Inch pipelines were built as an emergency war measure early in WWII, the only 'expressed concerns' were that the pipelines weren't built fast enough. Many ships and merchant mariners got destroyed by U-boats because there was no pipeline alternative. GIs are still getting killed in Asia because the US still depends on the jihadi oil system. Somehow this is too difficult for Americans to understand.
As far as environmental concerns go, 'gooney birds' were being protected on Midway Island even as battles were fought in the area.
#7
Thought this project had good bipartisan support. Obummer once again kicks the can down the road until after the 2012 election. He is giving up shovel ready jobs for environmental votes? Sounds like a losing approach for BHO. This is going to backfire on him. Not too bright. No president has been re-elected post WWII with the job approval ratings he now has.
#9
The Keystone XL capacity capacity is 1.1 million barrels/day. That's 11.7% of total net oil imports for 2010 (9.44 million barrels/day). It is also the amount of oil imported in 2010 from Saudi Arabia (1.1 million) and greater than from Nigeria (1.0 million) or Venezuela (.97 million). Not like it's important when we spend $200 billion/year and a 500 American lives/year defending Middle Eastern oil imports.
#10
The House will pass it with teh XL Pipeline in it. Harry or Zero will have to explain why they want to kill jobs and oil independence. Good luck. I see Senate Dems in unsafe seats voting for it
Posted by: Frank G ||
12/09/2011 23:18 Comments ||
Top||
Earlier we brought you news of a French source saying that David Cameron is "like a man who goes to a wife swapping party without his wife". Paul Waugh of Politics Home tweets the prime minister's response to that jibe:
Cameron on Sarko attack on him last night: "I have not and have no plans to attend any wife swapping parties"
#1
These two guys just cooperated in the assassination of Moammar Qadaffy, blew up a whole frickin' country together and now they're sniping at each other via Twitter? Is it like a falling out among thieves?
#3
It would add a whole new meaning to international relations if all the heads of states and their wives were to attend a swingers party. I'm tipping that Carla would be the most popular wife there.
[Washington Times] Staffers of Rep. Rick Larsen boasted over Twitter that they were drinking and otherwise goofing off on the job, according to a story in the NW Daily Marker.
The website said the tweets gave off the impression of "a staffers-gone-wild bash" in the Washington Democrat's office, including insults lobbed at the congressman himself.
"My coworker just took a shot of Jack crouching behind my desk," one staffer tweeted, apparently referring to Jack Daniel's whiskey.
Later, the staffer tweeted that he "couldn't pass a field sobriety test right now."
Bryan Thomas, a front man for the congressman, said that the office became aware of the tweets at noon Thursday and that all three staffers involved were fired a little more than an hour later.
"Neither Congressman Larsen nor his other staff were aware of the actions by these three staff members before today," Mr. Thomas said. "Congressman Larsen is disappointed by their actions and takes this very seriously. He has made it clear that he will not tolerate this kind of behavior."
The three staffers were a legislative correspondent and two legislative assistants, according to NW Daily Marker.
In other messages, staffers called the congressman everything from "my idiot boss" to unprintable derogatory terms such as the one George W. Bush used to refer to a New York Times ...which still proudly displays Walter Duranty's Pulitzer prize... news hound in 2000.
Posted by: Fred ||
12/09/2011 00:00 ||
Comments ||
Link ||
[3 views]
Top|| File under:
#1
Cab someone print here what W. called the Slimes reporter?
Posted by: Bobby ||
12/09/2011 8:34 Comments ||
Top||
#2
I believe his name was (probably still is) Adam Clymer. Bush was caught on open mike describing him to Cheney as an arsehole.
Posted by: Fred ||
12/09/2011 10:04 Comments ||
Top||
#3
We need fewer politicians with fewer responsibilities. Then they would not need so many aides and interns.
Posted by: M. Murcek ||
12/09/2011 13:00 Comments ||
Top||
#4
Without the new social media we would never have learned about these kinds of goings-on. Whenever I want to learn about tweeting, I sit in my backyard.
[Washington Examiner] Fireworks broke out in Congress today, as Rep. Rep Darrell Issa, R-Calif., warned Attorney General Eric Inaction Jackson Holder that he could be held in contempt of Congress for his failure to cooperate with an investigation into the Fast and Furious program, in which the B.O. regime allowed guns to "walk" into Mexico, where they ended up in the hands of Mexican drug lords.
The exchange, which occurred at the end of a House Judiciary committee hearing that lasted nearly seven hours including recesses, went kaboom! as Issa compared Holder's stonewalling to the Nixon era and Holder responded by comparing Issa's tactics to Sen. Joe McCarthy's.
Issa, who chairs the House Oversight and Government Reform committee that is investigating the Fast and Furious program, pressed Holder on whether he would comply with a subpoena request to release documents crucial to the probe. The Caliphornia congressman noted that if Holder did not cooperate or give a good reason for not providing the documents, he risked being held in contempt of Congress.
Holder said he would consider the request, and respond as prior Attorneys General had.
Issa responded by comparing Holder to John Mitchell -- a reference to one of President Nixon's Attorneys General, who was implicated in the Watergate scandal.
Holder fired back by invoking the McCarthy-era line, "Have you no shame?"
To which Issa retorted, "Have YOU no shame?"
The actual line, uttered to McCarthy during a 1954 hearing by Army counsel Joseph Nye Welch, was, "Have you no sense of decency, sir? At long last, have you left no sense of decency?"
Posted by: Fred ||
12/09/2011 00:00 ||
Comments ||
Link ||
[3 views]
Top|| File under:
#1
Reminds me of dueling wizards attempting to cast spells on each other.
Posted by: abu do you love ||
12/09/2011 4:34 Comments ||
Top||
#6
Yeah, what they said. McCarthy may have been a big jerk but he was also right about the commies. I'm not sure Holder wants to press this comparison too hard - not that the MSM will notice.
#7
Well... there were Soviet spies, it's just that McCarthy was utterly incompetent at identifying them. Most of the heavy lifting had been done by Nixon & HUAC on one side and Truman & the Feds on the other side. *SENATOR* McCarthy was a johnny-come-lately show-pony who apparently was mostly talking through his hat.
Posted by: Mitch H. ||
12/09/2011 9:41 Comments ||
Top||
#8
there were Soviet spies, it's just that McCarthy was utterly incompetent at identifying them. Yup, that's what I learned from all the disclosures after 1990. The rapid passage of Manhattan Project info from the USA to the USSR was the "red flag" for anyone paying attention. Reading between the lines,many of those Soviet spies probably retired & expired on federal pensions over the years.
#11
Joe Kennedy, Jr. was a pilot, not a tailgunner. He volunteered for a dangerous mission, and was killed when his plane exploded. He died a hero. He had flown 25 combat missions and was eligible to be rotated home.
Posted by: Rambler in Virginia ||
12/09/2011 19:06 Comments ||
Top||
#12
I'm on-board with that, RinVA.
However, back to our Beloved AT Holder...Which
"Tail-gunner Joe" do You think that racist black anarchist was alluding to? Just curious...
Georgia Democratic Rep. Hank Johnson accused the tea party movement and the National Rifle Association of creating an manufactured controversy over Operation Fast and Furious Thursday.
Johnsons comments came during an interview with The Daily Caller outside the House Judiciary Committee hearing room. Attorney General Eric Holder was testifying before the committee about Fast and Furious a Justice Department program where Bureau of Alcohol, Tobacco, Firearms and Explosives agents facilitated the sale of about 2,000 guns to Mexican drug cartels.
I think this is another manufactured controversy by the second amendment, NRA Republican tea party movement, Johnson said.
Johnson sung a different tune during the hearing, though, comparing the scandal to what he considers a surge in illegal gun sales to criminals.
After asking Holder for the specific number of guns the Justice Department and ATF helped smuggle into the hands of drug cartels to which Holder responded there were about 2,000 Johnson alleged that the gun show loophole was far worse.
Now, how many firearms are sold to al-Qaida terrorists, to other convicted felons, to domestic violence perpetrators, to convicted felons, to white supremacists? Johnson asked Holder. How many unlicensed gun dealers, or lets say, how many weapons, how many assault rifles lets just say in a given year are sold to such individuals by unlicensed gun dealers at these gun shows and how many of those end up walking away to Mexico? Can you give us a number on that?
I dont have a number on that, Holder said, offering to try to figure out later for Johnson what the exact number was.
Would it be more than a couple of hundred? Johnson followed up, likely meaning to say a couple thousand because his reference was in the context of Fast and Furious.
Though Holder previously admitted to Johnson he didnt have those statistics, he played into the argument without the facts.
Im pretty certain itd be more than 2,000, but in terms of getting those numbers to you, I can try to do that after the hearing, he said.
Johnson also claimed that the Senate is to blame for operations like Fast and Furious because its been almost six years since Congress upper chamber confirmed a presidential nominee as the head of the ATF.
Over the past five and a half years, weve had five acting directors of the ATF, Johnson said. The Senates failure and refusal to confirm a nominee for that important agency. What affect does that have on the ability of that agency to be guided in such a way so we can avoid situations like Fast and Furious?
I think thats actually a very good point, Holder said. When you have a confirmed head, theres a certain prestige that goes with that demarcation. But, beyond that, it allows a person to have a longer term and a certain consistency to put in place the programs, put in place controls that dont exist and allowed Fast and Furious to happen.
Johnson finished off his questioning by commenting that he thinks conservatives are systematically trying to prevent the ATF from functioning. I think the NRA and other Second Amendment rights radicals have confidence that the U.S. will not have a competent ATF head, he said.
House oversight committee chairman Rep. Darrell Issa, who also sits on the Judiciary Committee, was up next in questioning and struck back at Johnsons inflammatory rhetoric. Id be remiss if I didnt take exception to calling the NRA members, millions of them, radicals, Issa said. I think thats an offensive statement and that its beneath this committee.
#1
Johnson also claimed that the Senate is to blame for operations like Fast and Furious because its been almost six years since Congress upper chamber confirmed a presidential nominee as the head of the ATF
That's possible. It also makes one wonder why the Congressman from Georgia didn't cajole his Senate counterparts earlier on this.
As an aside, there wasn't a permanent head of the TSA until July 2010, with all the Keystone Cops issues in the interim. Wonder if Congressman Johnson was concerned about it at the time.
I think the NRA and other Second Amendment rights radicals have confidence that the U.S. will not have a competent ATF head, he said.
Press the President to nominate someone acceptable to all sides, and an approval might happen.
#3
"Maybe the ATF isn't being villified in the press because gun control is a darling of the left?"
FTFY, flash.
No charge.
Posted by: Barbara ||
12/09/2011 12:28 Comments ||
Top||
#4
I've got this song running in my head & it won't stop: Air pollution, revolution, gun control,
Sound of soul
Shootin' rockets to the moon
Kids growin' up too soon
Politicians say more taxes will
Solve everything
And the band played on...
The Temptations 1970
#6
If we had a free press, we would have known about Gunrunner earlier. Thanks to the NRA, the Tea Party, reporter Sharyl Attkisson, all the bloggers who have kept on top of this, and the cops who blew the whistle on this illegal operation. Thanks to Rep. Issa and Sen. Grassley too for leading the inquiry. Screw the tripe that comes out of Rep. Hank Johnson's mouth.
A multi-volume chronology and reference guide set detailing three years of the Mexican Drug War between 2010 and 2012.
Rantburg.com and borderlandbeat.com correspondent and author Chris Covert presents his first non-fiction work detailing
the drug and gang related violence in Mexico.
Chris gives us Mexican press dispatches of drug and gang war violence
over three years, presented in a multi volume set intended to chronicle the death, violence and mayhem which has
dominated Mexico for six years.
Rantburg was assembled from recycled algorithms in the United States of America. No
trees were destroyed in the production of this weblog. We did hurt some, though. Sorry.
[L.A. Times] As the first former U.S. senator to be subpoenaed by Congress in more than a century, Jon Corzine testified Thursday about the "last chaotic days" of MF Global, the trading firm that declared bankruptcy under his watch.
(Xinhua) -- U.S. President 
Fireworks broke out in Congress today, as Rep. Rep Darrell Issa, R-Calif., warned Attorney General 
