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.

MF Global is a leading broker-dealer with a deep involvement in financial markets around the world. We work closely with clients to create customized trading and hedging solutions in the world’s markets for commodities, listed futures and options, equities, fixed income securities and foreign exchange.

MF Global is a member of more than 70 financial exchanges around the world, and we are a leader by trading volume on a number of these exchanges. We have trading desks around the world, and we facilitate easy connections to all of the major electronic trading platforms as well as direct market access. MF Global is also one of 22 primary dealers authorized to trade U.S. government securities with the Federal Reserve Bank of New York.

In addition to executing client transactions, we provide comprehensive clearing and settlement services. Moreover, we are active in providing client financing and securities lending services.

MF Global’s well-regarded research and analysis franchise produces a wide range of actionable insights—from equity research and policy-focused analysis of U.S. legislative and regulatory topics, to commentary on macroeconomic trends and issues driving markets.

And here’s a look at their awards:

I then clicked on their “News” page only to find this:

Page Cannot Be Found

The page you are looking for might have been removed, had its name changed, or is temporarily unavailable.

Click < < Back to return to the page from which you came.

That one made me laugh.

Their entire “Investor Relations” section is also gone.

Here’s a quote from their “About” page:

Working relentlessly to bring our clients superior market access, hardworking insights and powerful trading and hedging solutions. It’s our mission, and throughout our long history, it’s why clients have relied on MF Global to help them capitalize on new opportunities in the world’s ever-changing financial markets.

Bottom line: These companies are always the best right up until they go bankrupt. Leverage can kill.

As many state legislatures debate double-digit percentage cuts in higher-education funding, presidential pay could become a sensitive subject. In Austin, for instance, University of Texas Chancellor Francisco G. Cigarroa is asking lawmakers to limit proposed reductions in the state’s funding of higher education, even as his compensation was third highest, by total cost of employment, among public-university leaders in America.

Last school year, Dr. Cigarroa was paid $750,000, with perks such as deferred compensation bringing the total cost of his employment to $813,892, the Chronicle survey said.

A University of Texas spokesman said Dr. Cigarroa has received no pay increase since taking the job two years ago. In a statement, Gene Powell, chairman of the University of Texas System Board of Regents, said the vast majority of the chancellor’s compensation comes from an endowment rather than from taxpayers.

Did you catch the first sentence of that last paragraph? “A University of Texas spokesman said Dr. Cigarroa has received no pay increase since taking the job two years ago.”

I always find it funny that executive pay is always defended by, “But he hasn’t had a raise in X number of years.”

Even with a 3% inflation rate over the last three years, this president’s purchasing power is still over $684,000. Not too shabby if you ask me.

It’s no wonder college is so expensive.

Mr. Buffett said Mr. Sokol, 54 years old, had bought 96,060 shares in January, before Berkshire reached a $9 billion deal to acquire the company. Berkshire’s purchase price of $135 per share meant that Mr. Sokol’s stake rose $3 million in value.

Interesting.

What I found really interesting was this quote from the article:

“Mr. Buffett said he and Mr. Sokol didn’t feel the Lubrizol purchases were ‘in any way unlawful.’”

Maybe not but it sure looks bad.

Amazon or eBay?

Personally, I like Amazon 1,000 times better than eBay. I spend lots of money with Amazon but nearly nothing with eBay. The eBay site seems cumbersome, and gimmicky. And I don’t like feedback system, which seems like a joke.

I’m asking this question today because the WSJ reported that eBay is buying GSI Commerce in an attempt to compete with Amazon. I found this interesting:

GSI has a service called ShopRunner that could have helped level the playing field. Similar to Amazon’s Prime program, ShopRunner charges a flat $79 annual fee in exchange for free two-day shipping from dozens of retailers. Unfortunately, eBay has decided to sell most of ShopRunner. The thinking is that eBay doesn’t want to upset its existing sellers who would be in competition with retailers in the ShopRunner network. In contrast, Amazon offers free shipping even though it puts some third-party sellers that use its site at a disadvantage.

I have a suspicion that the reason eBay sold ShopRunner is because sellers would be angry over not being able to charge what they wanted for shipping. It’s pretty well known that eBay sellers use shipping as a way to make money.

Here is their list. You can click on the link to see more information on each CEO.

I’d like to see a ranking of all the CEOs of say the S&P 500 Index or some sort of index. That would be interesting to me.

I saw a graphic in today’s Wall Street Journal that detailed some of the component costs of the new iPad. The graphic broke down some of the component costs:

• Display: $50

• Front and rear cameras: $4.50

• Main processor: $25

• Radio components: $25

• Flash memory: $30

• Sensors: $2.50

• Battery: $20 – $25

As BG points out in his comment below, component costs aren’t the only costs to go into the creation of a product. There are also engineering, research and development costs, and marketing costs.

Anyway, I thought the component aspect was interesting. I thought components were more expensive than that.

Owners want to change the structure so that they get $2 billion right off the top and the players get 60% of the remainder. They also want to extend the season by two more games, which the players are against.

The owners claim that their costs have risen and they can’t raise ticket prices because fans don’t want to pay more.

I have to say, I’m with the players on this one. Surprised?

The owners built stadiums with heavy subsidies from taxpayers (roughly $8 billion according to today’s WSJ). Revenue may have flattened recently but it probably won’t stay that way for long. Besides, none of the teams are losing money.

Bottom line: none of them (players or owners) seem to be hurting. They could all be hurting if the 2011 season is cancelled.

Thoughts?

RELATED: JaMarcus Russell’s Facing Foreclosure

THE PRESIDENT: Good afternoon, everybody.

Before we begin I just want to mention a report that was released by the Census Bureau yesterday about what happened to wages during the last decade. It revealed that between 2001 and 2009, the incomes of middle-class families fell by almost 5 percent.

I want to repeat that. Between 2001 and 2009, the incomes of middle-class families fell by 5 percent.

In the words of today’s Wall Street Journal, this “lost decade” was the worst for families in half a century — a decade that obviously ended in a devastating recession that made things even worse.

We know that a strong middle class leads a strong economy. And that’s why, as we dig our way out of this recession, we’ve set our sights on policies that grow the middle class and provide a ladder for those who are struggling to join it. And that’s why I am urging the leaders of the other party to stop holding middle-class tax cuts hostage and extend this relief to families immediately. They need it. They need our help. And that’s why we’re here today.

Part of what led to the financial crisis were practices that took advantage of consumers, particularly when too many homeowners were deceived into taking out mortgages on their homes that they couldn’t afford. But we also know that these practices predated the crisis, and we also know that these practices don’t just exist in the housing market.

For years, banks and mortgage lenders and credit card companies have often used fine print and confusing language and attractive, front-end offers to take advantage of American consumers. We’ve seen banks charge unreasonable overdraft fees. We’ve seen credit card companies hit folks with unfair rate hikes. We’ve seen mortgage lenders offer cheap initial monthly payments and interest rates that later skyrocketed. All this has cost middle-class families billions of dollars — tens of billions of dollars — that they could have used to pay the bills or make the mortgage, or send their kids to college.

And I have to say when Michelle and I were first starting a family, we had to navigate a lot of these financial decisions — whether it was buying a first home, or paying off our college loans, or putting a lot of debt on credit cards. And obviously, we were better off than a lot of families, but we still often found ourselves confused or finding ourselves in tough situations as a consequence. So we’ve got a pretty good idea — I’ve got a personally good idea of how this can be difficult and sometimes confusing for the average consumer.

And that’s partly why even when I was still in the U.S. Senate, I took such a great interest in the work of the woman standing next to me. I have known Elizabeth Warren since law school. She’s a native of Oklahoma. She’s a janitor’s daughter who has become one of the country’s fiercest advocates for the middle class. She has seen financial struggles and foreclosures affect her own family.

Long before this crisis hit, she had written eloquently, passionately, forcefully, about the growing financial pressures on working families and the need to put in place stronger consumer protections. And three years ago she came up with an idea for a new independent agency that would have one simple overriding mission: standing up for consumers and middle-class families.

Thanks to Elizabeth’s efforts, as well as the dedication and persistence of the person to my right, Secretary of Treasury Geithner, as well as leaders in Congress like Chris Dodd and Barney Frank, that agency will soon become a reality.

The Consumer Financial Protection Bureau, which was one of the central aspects of financial reform, will empower all Americans with the clear and concise information they need to make the best choices, the best financial decisions, for them and their families.

Never again will folks be confused or misled by the pages of barely understandable fine print that you find in agreements for credit cards or mortgages or student loans. The bureau is going to crack down on the abusive practices of unscrupulous mortgage lenders. It will reinforce the new credit card law that we passed, banning unfair rate hikes and ensure that folks aren’t unwittingly caught by overdraft fees when they sign up for a checking account. It will give students who take out college loans clear information and make sure that lenders don’t game the system. And it will ensure that every American receives a free credit score if they are denied a loan or insurance because of that score.

Basically, the Consumer Financial Protection Bureau will be a watchdog for the American consumer, charged with enforcing the toughest financial protections in history.

Now, getting this agency off the ground will be an enormously important task, a task that can’t wait. And that task is something that I’ve asked Elizabeth to take on. Secretary Geithner and I both agree that Elizabeth is the best person to stand this agency up. She was the architect behind the idea for a consumer watchdog, so it only makes sense that she’d be the — she should be the architect working with Secretary of Treasury Geithner in standing up the agency.

She will help oversee all aspects of the bureau’s creation, from staff recruitment to designing policy initiatives to future decisions about the agency. She will have direct access to me and to Secretary Geithner, and she will oversee a staff at the Treasury Department that has already begun to work on this task.

She will also play a pivotal role in helping me determine who the best choice is for director of the bureau. And given the importance of these economic issues, I also want Elizabeth to have a role as a White House advisor as well as advisor to Secretary Geithner on consumer issues.

Elizabeth understands what I strongly believe — that a strong, growing economy begins with a strong and thriving middle class. And that means every American has to get a fair shake in their financial dealings.

For years financial companies have been able to spend millions of dollars on their own watchdog — lobbyists who look out for their interests and fight for their priorities. That’s their right. But from now on, consumers will also have a powerful watchdog — a tough, independent watchdog whose job it is to stand up for their financial interests, for their families’ future. And I am proud that we got this done, and I’m equally proud that Elizabeth Warren will be helping to make her original vision a reality.

So we are extremely proud of you, Elizabeth. Good luck.

MS. WARREN: Thank you. Thank you, Mr. Secretary.

Thank you, everybody.

Basically, to sum up President Obama’s remarks, “You Americans are too stupid to make financial decisions so we have created more bureaucracy and red tape to protect you from those bad, bad businesses.”

The thing is, we had regulations before all this mess started in the first place. We just weren’t enforcing the regulations we had. Not only that, the GOVERNMENT played a significant role in creating this mess by pushing lenders to loan money to people who really couldn’t afford to pay it back. There was no mention of the government’s role in this crisis in Mr. Obama’s remarks.

Instead of coddling people with a false sense of security, we need to bombard them with the good old saying: BUYER BEWARE! We can regulate all we want but we can never regulate away stupidity.