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How Does $1.2 Billion Vanish?
By JLP | January 31, 2012
Have any of you been following the MF Global debacle? I have. At least what I have read in the Wall Street Journal (the latest here). It’s simply unbelievable. How does $1.2 billion in customer funds vanish? These are customer funds, mind you.
As I understand it (if I’m wrong, please correct me), these customer funds are no different from a customer brokerage account at say Merrill Lynch or Charles Schwab. So, it would be like going to check your account balance one day and your account being empty.
I’m not sure why John Corzine and the other executives are not behind bars right now. He and the other executives at MF Global should at least be required to sell all their possessions and put that money towards what they stole from their clients. That would go a lot further than Corzine’s “contrite” attitude about the whole deal.
Topics: Business News | 7 Comments »
January 31st, 2012 at 12:59 pm
From my understanding the accounts were different and it was known that the MF Global business could use those funds in other ways. Not that that makes it ethical or right.
Another question how do you lose $2.3 trillion?
http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=3&ved=0CDMQtwIwAg&url=http%3A%2F%2Fwww.youtube.com%2Fwatch%3Fv%3DxU4GdHLUHwU&ei=hDkoT9v1IuS0iQKC04naAQ&usg=AFQjCNEJ3HhLmKPFKWPg6b1pFb4YOyZsxQ
January 31st, 2012 at 1:48 pm
Jon,
Everything I have read seems to say that MF Global was not supposed to use customer funds in that way.
January 31st, 2012 at 4:16 pm
How Does $1.2 Billion Vanish?
The answer to that question has been settled outside of public knowledge — probably in one of Romney’s “Quiet Rooms”.
Should these people be in jail? If it were one of us, then the answer is yes. Will these people go to jail? Probably not.
There is your class warfare right there.
January 31st, 2012 at 9:05 pm
How does $1.2B vanish and why aren’t those responsbile in jail?
Corzine is a big Dem player. He’s out there raising all kinds of money for Obama. He’s as safe from prosecution or any serious fallout as can be.
February 1st, 2012 at 6:23 am
Steve) If there is anything telling, it is that corzine is an ex CEO of Goldman Sachs. Remembet Henry ‘hank’ Paulson? Another ex CEO of Goldman Sachs that was the guy behind TARP, and the bailouts of all the investment banks.
It doesn’t mater what party affiliation letter these banksters have behind their names — when these guys are around, you know taxpayers are going to get screwed, and they will get richer.
February 2nd, 2012 at 2:49 am
The person(s) in whose pockets the 1.2
billion is knows that it hasn’t vanished.
February 2nd, 2012 at 4:32 pm
The money hasn’t vanished, it has just gone somewhere where investigators can’t find it (yet). Makes me wonder about my own investment accounts.