Gensler’s Personal Email Use Triggers Hill Inquiry

Now, THIS is indeed ironic.  CFTC Chairman Gensler stepped aside and recused himself since he and alleged swindler Jon Corzine were former colleagues at Goldman Sachs.

You may remember Corzine, Mr. "I don't know what happened", when $1.6 billion of aggregated client funds went missing just days prior to the collapse of MF Global, of which he was Chairman of.  Corzine was never prosecuted, probably due to the fact that he was a former New Jersey Senator, New Jersey Governor, and oh, by the way, was President Obama's leading fund raiser on Wall Street during his 2008 campaign.

I guess Gensler forgot the NSA can monitor all cell phone calls and all emails, inside or outside corporate intranets.  lol

http://blogs.wsj.com/washwire/2013/05/30/genslers-personal-email-use-triggers-hill-inquiry/

MF Global Trustee Speaks: It Was All Corzine's Fault

http://www.zerohedge.com/news/2013-04-04/mf-global-trustee-speaks-it-was-all-corzines-fault

House Republicans Find Corzine Guilty Of MF Global Collapse, Missing Funds; Democrats Refuse To Endorse Findings

http://www.zerohedge.com/news/2012-11-14/house-republicans-find-corzine-guilty-mf-global-collapse-missing-funds-democrats-ref

Barack Obama and Jon Corzine

Corzine Tells Judge That Due To Purchase Of 50,000 MF Global Shares Before Bankruptcy, He Must Acquit

http://www.zerohedge.com/news/2012-10-23/corzine-tells-judge-he-purchased-50000-shares-mf-global-stock-bankruptcy-he-must-acq

Sentinel ruling may hurt MF Global clients

This is a dangerous precedent, because if the financial institution collapses, clients with segregated deposit accounts will have difficulty recouping their funds, as they are last in line as an unsecured creditor.  What was once considered sacred is no longer safe.

http://www.reuters.com/article/2012/08/10/us-sentinel-appeals-decision-idUSBRE87900T20120810

 "I don't think that's what the Commodity Futures Trading Commission had in mind" with its requirement that brokers keep customer money separate from their own, he said.

Futures brokers are required to keep customers' funds in dedicated accounts to protect them from being used for anything other than client business.

However, Thursday's ruling suggests that brokerages can use customer funds to pay off other creditors, Sentinel trustee Fred Grede told Reuters.

"It does not bode well for the protection of customer funds."

Worse, Grede said, is that the ruling suggests that a brokerage that allows customer money to be mixed with its own is not necessarily committing fraud.

Sentinel allegedly pledged hundreds of millions of dollars in customer assets to secure an overnight loan at Bank of New York Mellon, leaving the bank in a secured position but Sentinel's customers out millions.

Customer funds were allegedly moved from the protected accounts to other accounts so they could be used as collateral for loans to Sentinel's own trading operations.

The appeals court said that "perhaps the bank should have known that Sentinel violated segregation requirements" but agreed with the district court's earlier ruling that "such a lack of care does not rise to the level of the egregious misconduct" needed to reprioritize a claim.

"That Sentinel failed to keep client funds properly segregated is not, on its own, sufficient to rule as a matter of law that Sentinel acted ‘with actual intent to hinder, delay, or defraud' its customers," U.S. Circuit Judge John D. Tinder wrote in the ruling.

In other words, if the brokerage uses investor funds as collateral to gamble with its own funds, loses it all, and collapses, the client is ass'ed out.  And it's all legal.  This will not only happen.  It has already happened, with the collapse of Sentinel, MF Global, and Peregrine.  And economists and government officials don't understand why retail investors are exiting these already rigged markets.

Only in America: Corzine Eyes Starting a Hedge Fund

http://www.benzinga.com/news/12/08/2841744/only-in-america-corzine-eyes-starting-a-hedge-fund#ixzz23sEcp2fP

The Justice Department’s MF Global Scandal Dates to 1932

http://www.bloomberg.com/news/2012-07-27/the-justice-department-s-mf-global-scandal-dates-to-1932.html

There's an old saying in journalism that there are no new stories, only new reporters. The revelation that U.S. Attorney General Eric Holder's old law firm used to represent the bankrupt brokerage firm MF Global Holdings is a great example. 

"Those wondering why the Department of Justice has refused to go after Jon Corzine for the vaporization of $1.6 billion in MF Global client funds need look no further than the documents uncovered by the Government Accountability Institute that reveal that the now-defunct MF Global was a client of Attorney General Eric Holder and Assistant Attorney General Lanny Breuer’s former law firm, Covington & Burling." 

It's great fodder for the scandal mill. It's also not a surprise. Covington & Burling, a powerhouse Washington law firm that was founded in 1919 by former Representative James Harry Covington, in recent years has represented JPMorgan Chase, Wells Fargo, Citigroup, Bank of America, Morgan Stanley, Goldman Sachs and UBS, to name a few. It would have been more surprising if the firm had never represented MF Global. Corzine, for anyone who hasn't been paying attention, is the former New Jersey governor who was MF's chief executive when it collapsed.

Food Inflation May Rise to 3% to 4% in 2013 After Drought

There a myriad of reasons why we will have food inflation, in addition to the current drought.  There are two other reasons few understand:  the bankruptcies of MF Global and Peregrine--and subsequent theft of client segregated funds.  Many of these clients included farmers hedging their crops and livestock.  With their funds dissipated from the fraud, the crop and feed shortages will become more acute going forward.  It takes money to grow crops:  for seed, fertilizer, labor, machinery, water, and land.  No money, no honey.


http://www.bloomberg.com/news/2012-07-25/food-inflation-may-rise-to-3-to-4-in-2013-after-drought-1-.html

Desperate CME Tries To Regain Client Confidence In MFG, PFG Aftermath; Sends Letters To Customers

In other words, blah blah blah...

CME:

Congress, federal regulators, industry regulators, industry groups and CME are all working towards the same goal: to ensure that market users have confidence in all aspects of the industry, and that the appropriate protections are in place at every point in the system. Every link in the chain has to be as strong as the next. The businesses and individuals who rely on the futures markets to manage their risk rely on all of us to collectively manage their trust.

http://www.zerohedge.com/news/desperate-cme-tries-regain-client-confidence-mfg-pfg-aftermath-sends-out-letters-customers

Is 'Inept' CFTC "The Get-Away Driver" For PFG?

http://bloom.bg/NegIDA

PFG Is Now MFG(lobal) Part 2 As $220 Million In Segregated Client Money Has Just Vaporized

That these financial scandals and outright fraud continue to happen again and again--despite government regulators' assurances they won't happen again should tell us the system is broken--and there is no fix on the horizon.  Yet, the distracted masses continue along, unable and unwilling to think beyond tomorrow's episodes of reality TV.

http://www.zerohedge.com/news/pfgbest-now-mf-global-part-2-220-million-segregated-client-money-has-just-vaporized

JPMorgan Chase Knew MF Global All Too Well

http://www.americanbanker.com/bankthink/JPMorgan-Chase-MF-Global-Diane-Genova-1048066-1.html

Jon Corzine -Taking Care of His Friends With Insider Connections

http://millergd.blogspot.com/2012/03/john-corzine-taking-care-of-his-friends.html

Corzine Corzined - Congressional Panel Finds Former MF Global CEO Ordered JPM Fund Transfer

I told you lemmings former MF Global CEO Corzine was a MF'er.  This guy is about to be MF'ed--and deservedly so.  This is HUGE.  I wonder how Obama and Biden intend to distance themselves from him now.  If this isn't a sure sign our financial system is circling the drain, then well, the blind are just blind.  THEY ARE ALL CROOKS!  Your beloved government leaders, your bankers, THE WHOLE DAMN CARTEL.

http://www.zerohedge.com/news/corzine-corzined-congressional-panel-finds-former-mf-global-ceo-ordered-jpm-fund-transfer

The Audacity of Bonuses at MF Global

http://www.nomiprins.com/thoughts/2012/3/12/the-audacity-of-bonuses-at-mf-global.html

The Neverending MF Global Story: Regulators Block The Truth

This is an example of "crime not paying."  Or more correctly, if you're going to steal, steal big.  Don't rob a liquor store at gun point--that'll get you 25 years in the pokey.  Steal from unsuspecting depositors to the tune of billions, because the zombie masses won't believe a theft can be that big, and you can use your money and influence to buy off regulators to not only look the other way, but to protect you after you've been "caught."  They'll chalk it off as a "misunderstanding."  You'll walk.

Oh, and it helps if you are the President's and Vice President's top Wall Street fund raiser and adviser.  This is government regulation at its worst.

http://www.forbes.com/sites/francinemckenna/2012/01/09/the-neverending-mf-global-story-regulators-block-the-truth-from-coming-out/2/

The Gold "Rehypothecation" Unwind Begins: HSBC Sues MF Global Over Disputed Ownership Of Physical Gold

Gold "conspiracy theorists" 1, naive zombies 0.  Soon the scoreboard will read infinity to zero. 

http://www.zerohedge.com/news/gold-rehypotecation-unwind-begins-hsbc-sues-mf-global-over-disputed-ownership-physical-gold

MF Global and the great Wall St re-hypothecation scandal

This is one of the best legal opinions I've read on why MF Global collapsed.  Our global financial system has gone off the rails, and the collapse of our fractional banking system is inevitable.

http://newsandinsight.thomsonreuters.com/Securities/Insight/2011/12_-_December/MF_Global_and_the_great_Wall_St_re-hypothecation_scandal/

MF Global fallout delays U.S. farm seed, land deals

So you zombie US citizens still think the collapse of MF Global and subsequent theft by its executives won't affect you?  Think again.  Expect higher food prices next year, courtesy of Corzine and Co. (hat tip to Biden and Obama).

The worst part is that legislators talk as if segregated client funds were mishandled.   Ummm, the funds were outright stolen.  Rule of law has completely vanished.  When a run on banks occurs, as clients withdraw funds from depository institutions they no longer trust, the experts will declare once again "no one saw the panic coming."  Right...

http://www.reuters.com/article/2011/12/06/us-mfglobal-agriculture-idUSTRE7B509620111206