"MF Global acknowledged to federal regulators that it had diverted funds"

[smurff]

There's a possibility that somebody's going on a perp walk soon:

http://online.wsj.com/article/SB1000142 ... %3Darticle

This despite the company lawyers' recent contentions that all of the missing $700 million "is accounted for," the kind of statement that coming from the mouth of certain lawyers can mean anything. 

I would not keep more than the SIPC limit (currently $500K) with any brokerage firm.  MF Global  specialized in commodities/futures, but the saying about all the eggs in one basket applies to companies like them, too.

[Reub]

You mean a guy from New Jersey with a fuzzy white beard and glasses?

[smurff]

If it's the same guy who wore a t-shirt to bed at night that said "NJ GOV," yeah, that's the one.

Of course, there may be others walking with him, too--you know, underlings.

There's been so much malfeasance just since 2008, I'm actually ready for a perp walk.  A real one, with genuine bankers, not some silly consultants and hedge fund psychos.

[stone]

Great piece about this:
http://www.marketwatch.com/Story/story/ ... 2128040CF6

"These days more and more power lies in the hands of a smaller and smaller elite. Many people react by taking refuge in conspiracy theories. They assume the elite knows what’s really going on.
The more frightening view is the exact opposite: That the people steering the ship haven’t got a clue.
Look at Jon Corzine, the chairman and CEO of MF Global. He has remarkable credentials. He’s the former head of Goldman Sachs, a former Senator, a former governor. And MF Global was his baby. He took over there last year, on a mission to build it into a global financial firm.
Yet it turns out the company’s blow-up took him by completely surprise. How much? Consider this: Corzine actually bought about $450,000 worth of MF Global stock with his own money over the summer. Some of it as recently as August."

[murphy_p_t]

Great piece about this:
http://www.marketwatch.com/Story/story/ ... 2128040CF6

"These days more and more power lies in the hands of a smaller and smaller elite. Many people react by taking refuge in conspiracy theories. They assume the elite knows what’s really going on.
The more frightening view is the exact opposite: That the people steering the ship haven’t got a clue.
Look at Jon Corzine, the chairman and CEO of MF Global. He has remarkable credentials. He’s the former head of Goldman Sachs, a former Senator, a former governor. And MF Global was his baby. He took over there last year, on a mission to build it into a global financial firm.
Yet it turns out the company’s blow-up took him by completely surprise. How much? Consider this: Corzine actually bought about $450,000 worth of MF Global stock with his own money over the summer. Some of it as recently as August."

Stone,

I'm not sure what's "great" about this article...btw, $450k is really just a small trade for a guy of his means...even the article itself says that he got plenty of free "chips" to play the game with.

[smurff]

One of those Wall Street Rules is that if senior execs buy stock in their own company, it's because the are signaling to the market that they believe the company has wonderful prospects.   Under normal circumstances it's a good sign.

But I've ceased to believe that anything about financial firms fall under "normal circumstances,"  and the contrarian in me likes to come out.  $450K is chump change for someone with a net worth of a half  billion dollars.  Such buying can also be a fake signal, the sort of thing where the ceo knows something (major or minor)  is wrong, but buys shares to signal to the market the opposite--that all is well. 

But that's a separate issue from the misuse of customer funds, which is pure evil.

[Reub]

When will the Occupy Wall St types show up at his door?
I'll bet never.

[moda0306]

When will the Occupy Wall St types show up at his door?
I'll bet never.

I'd hope never, as citizenry invading someone's property because they allegedly committed a crime is wholly inappropriate.

[Reub]

I agree. However, they have already done it in New York. For some reason they missed George Soros' residence, though. Probably just an oversight.

[stone]

http://www.telegraph.co.uk/finance/news ... uptcy.html

[moda0306]

To Reub's comment, I'm not aware of OWS in New York invading private property, at least not in any substantial manner... especially that of a private individual.  I'd imagine maybe some have shown up at bank HQ's and refused to leave, if that's what you're speaking of.

I don't think the OWS crowd has any patience for democrats who have manipulated markets any more than Lazzais Fair bankers.

And does George Soros live in Manhattan?

[stone]

http://www.forbes.com/sites/francinemck ... hen-where/

"Corzine planned to sell the company not file bankruptcy.
There was no time to monetize the assets by selling them outright. That would have made replacing them quickly, in kind, much more difficult. A privately arranged line of credit, secured by a basket of assets discounted by up to 50% due to the risk of default and the firm’s desperation, could be unwound as soon as a deal to sell the firm was struck. All the assets could go back into the customer accounts and no one would be the wiser.
Any firm willing to lend $300-400 million for a week or so against approximately $700 million of customer assets was certainly wise enough to require recourse to those assets in the event of a bankruptcy.  Some of the assets, like CME stock, were sure to drop in value if the bankruptcy occurred.
When MF Global filed for bankruptcy midday on Monday October 31, 2011, the lender owned the customer assets.
My guess is the pledged assets were immediately liquidated.
No one is raising their hand to admit they’re the firm who lent MF Global several hundred million dollars, enough to get them through the weekend, based on collateral MF Global had no right to pledge. It’s not clear what the responsibility of a firm is in that situation to ask questions and confirm title. What is clear is that the arrangement, most likely a favor called in based on very strong relationships, must have been planned in advance. When all else failed to generate enough cash on Wednesday afternoon, someone at MF Global pressed the button and set the wheels in motion.
The lender must have had the capacity to make such a loan and the ability to execute a strategy intended to leave few traces. But there are always trails to follow."

[Reub]

From ABC News:

"Billionaire hedge fund manager John Paulson, whose home was on the visiting list for Occupy Wall Street's "Millionaire March" this afternoon, said today that "instead of vilifying our most successful businesses, we should be supporting them and encouraging them to remain in New York City."

Protesters took to New York City's tony Upper East Side today and marched past the homes of several of the city's richest residents, including News Corp. owner Rupert Murdoch, real estate developer Howard Milstein and JPMorgan Chase CEO Jamie Dixon."

http://abcnews.go.com/Business/paulson- ... rroeoQdGsE

And yes, Soros has a residence in New York (somehow the demonstrators missed it):

#71 George Soros
© Daniel Acker/Bloomberg News /Landov

Age: 75
Fortune: self made
Source: Hedge funds

Net Worth:  7.2 (billion dollars)

Country Of Citizenship: United States
Residence: New York, New York, United States, North America
Industry: Finance
Marital Status: married, 5 children

[moda0306]

Reub,

I guess I didn't realize that... Reub: 1, Moda:0.


Though "at his door" would imply invasion of the person's property... which it appears is not necessarily the case... it sounds like they just stood in the streets...

I'm trying to get to the bottom of how appropriate or inappropriate most of the OWS operations are.  Invading someone's front lawn definitely breaks into the latter.

[stone]

Lots more about MF Global in:-
http://jessescrossroadscafe.blogspot.co ... -self.html

"The CME boasts on its web site that anywhere from $8 billion to $100 billion in protection is available in the event of a clearing member failure. If it was telling the truth, it would seem $600 million should be no problem.

Instead, we all have a very big problem, thanks to the CME Group. Our financial and credit systems are based upon trust and belief. The word credit itself comes from the Latin word “credere”? or to believe.

What the CME Group has done by not immediately guaranteeing all MF Global customers and positions is to undermine belief in the futures market clearing system. So important is this issue that I am at a loss to explain how the CFTC hasn’t yet mandated that the CME do the right thing. And I have been somewhat dumbfounded that the analytical community and media haven’t been all over this, but there was an article in today’s NY Times that discusses the CME’s failures for the first time. In addition, there was a well-written article on the Internet that did describe the problem and the CME’s role. Please pay particular attention to the comments submitted on both articles.

Worst of all, even MF Global customers who held no open futures positions and only cash and unencumbered assets, like registered warehouse receipts for silver, gold and other commodities, have found those assets under the control of the bankruptcy trustee. If you do own warehouse receipts on silver or other commodities that are tied up in the MF Global bankruptcy, you must run, not walk, to a securities attorney to secure your legal rights to your property. This is not a matter of what is right or wrong, as the unauthorized appropriation of private property is never correct. This is a matter of law, which sometimes is not the same as what seems right or wrong. Please don’t delay. The CME is to blame for all of this, but blame must be saved for later..."