Saturday, November 19, 2011

VP Biden says he called Jon Corzine for advice

This crook, Jon Corzine, former CEO of bankrupt MF Global, former Governor and US Senator of New Jersey, former Goldman Sachs executive, and yes, due to be appointed by President Obama to be Treasury Secretary in 2013 (after all, he served in the Treasury under Clinton), is being investigated by the FBI for stealing $600 million of client funds right before MF Global's collapse.  Hey, if you're going to steal, do it big.

Do you think this is an isolated incident of the rich stealing from the rich?  Think again.  This is the first domino in a cascade of segregated client accounts being stolen from--with no recourse for the victims.  Visualize putting money down to purchase a home in an escrow account.  That money is safe, separated from the firm's own money.  Even if the broker somehow went broke, your money is still safe due to the separation.  It's the central tenet of our global banking system, the foundation of our trust in firms handling our money.

Apparently, that faith and trust is now broken, because if you believe your money in your bank account is safe from legalized theft, think again.  150,000 clients had their accounts zeroed out at MF Global:  clients including large pension funds, as well as individuals like you and me.   Gone.  Zilch.  Nada.

What was their crime?  They believed their funds inside MF Global were safe--safe from outsized illegal gambling by the custodian bank, safe from fraud, and safe from outright theft.  Because, after all, the regulatory agencies would monitor the bank, and even in the event of a cataclysmic collapse, would backstop and honor their deposits, right?  Wrong.

Jon Corzine just happened to be one of President Obama's biggest campaign fundraisers.  Which apparently makes it okay for him to steal $600 million dollars from clients right before his firm collapsed.

America, we allowed this happen to us.  We deserve everything we're about to get:  a $hit $andwich.

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