Why isnt Corzine in handcuffs?

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Zebo

Zebo

Elite Member
Jul 29, 2001
39,398
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http://www.tavakolistructuredfinance.com/MFGR.pdf

I don't know if you guys are keeping up in the MF global fiasco or not but basically it more Wall Street Fraud. MF global stole lost about 1.2-3 billion of it's customers money while illegally gambling on their own with it in European bonds.

Are any of our brokerage/annuity accounts safe?

Customers don't know yet how much but many can't get their deposits out of the firm. Especially if you're just Joe Blow. If you are someone you did get your money. Also, Corzine as CEO has no securities license as required by law. Hasn't had one for 12 years when he was at GS.

So you steal lose billions are unlicensed and still walk the streets? Explain that.

Congress has asked him to testify, probably want to reward him with a taxpayer bailout or something since it's coming bankruptcy is bigger than Lehman bros who they failed to save.
 
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Anarchist420

Diamond Member
Feb 13, 2010
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Congress enabled him through chartering the Fed and refusing to repeal it. The Fed loosens credit policies. If the government only collected hard money (gold or silver) for its revenues, then people wouldn't be wasting their money investing in these bogus schemes unless they had really low self control.

Anyway, what Corzine did is morally wrong, but my point is that the government enabled him to do so. He should be punished by the State in which he committed the crime however, not by the Federal government.
 
T

the DRIZZLE

Platinum Member
Sep 6, 2007
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Given his position as the head of as relatively small firm I presume he at least knew and more likely directed the shenanigans. He was one of the top bundlers for Obama so there's a good chance he'll walk away with a slap on the wrist.
 
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hiromizu

Diamond Member
Jul 6, 2007
3,405
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Hmm...was he not allowed to invest in European bonds? Were his clients not told that alternate investment strategies carries many risks in that all capital could actually be lost?
 
Doppel

Doppel

Lifer
Feb 5, 2011
13,306
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the DRIZZLE said:
Are you serious? He used client money as collateral to cover his bad trades.
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That's de facto legal. How many are in prison over orchestrating what a normal person considers fraud with the banking crisis? robo-signing, sh*t tons of leverage, misrepresenting credit risk, etc. nobody is in jail over this crap other than maybe a middle manager here or there.
 
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bfdd

Lifer
Feb 3, 2007
13,312
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No the real question is, why isn't Corzine dead? How come NO ONE has just offed the guy to make an example?
 
Hugo Drax

Hugo Drax

Diamond Member
Nov 20, 2011
5,647
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Doppel said:
That's de facto legal. How many are in prison over orchestrating what a normal person considers fraud with the banking crisis? robo-signing, sh*t tons of leverage, misrepresenting credit risk, etc. nobody is in jail over this crap other than maybe a middle manager here or there.
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Theft of customer assets in a segregated account is not legal.

If you had cash in a safe deposit box and a bank employee opens your box, takes your cash and spends it day trading and ends up blowing the money that is the equivalent of what occurred with MF global.
 
JSt0rm

JSt0rm

Lifer
Sep 5, 2000
27,399
3,948
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Hugo Drax said:
Theft of customer assets in a segregated account is not legal.

If you had cash in a safe deposit box and a bank employee opens your box, takes your cash and spends it day trading and ends up blowing the money that is the equivalent of what occurred with MF global.
Click to expand...

yeah but if they got the laws changed to allow this then lolololol.
 
T

the DRIZZLE

Platinum Member
Sep 6, 2007
2,956
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Hugo Drax said:
Theft of customer assets in a segregated account is not legal.

If you had cash in a safe deposit box and a bank employee opens your box, takes your cash and spends it day trading and ends up blowing the money that is the equivalent of what occurred with MF global.
Click to expand...

This. I'm not a lawyer or a broker but there are a lot of securities laws covering this sort of thing.
 
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bfdd

Lifer
Feb 3, 2007
13,312
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Corzine doesn't deserve to die because he might have broke the law, he deserves to die for being a piece of shit hypocrite.
 
J

JS80

Lifer
Oct 24, 2005
26,271
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Hugo Drax said:
Theft of customer assets in a segregated account is not legal.

If you had cash in a safe deposit box and a bank employee opens your box, takes your cash and spends it day trading and ends up blowing the money that is the equivalent of what occurred with MF global.
Click to expand...

I'm not sure it works like that for futures accounts.
 
T

the DRIZZLE

Platinum Member
Sep 6, 2007
2,956
1
81
Here's the full video of him testifying in the House today.

http://www.c-span.org/Events/Corzine-Testifies-in-MF-Global-Investigation/10737426111-1/

He looks pretty defeated, that stupid smirk is finally gone from his face. His story is basically that the firm was in trouble before he got there and he has no idea what happened to his clients money.

I'm somewhat surprised that he didn't just plead the fifth on most of the questions.
 
sactoking

sactoking

Diamond Member
Sep 24, 2007
7,649
2,925
136
Aside from any answer relating to power, access, cronyism, etc. there is a practical answer to the question posed in the OP:

Corzine isn't in handcuffs because nobody knows what happened yet.

Looking at the coverage MF Global has filed Chapter 11. The company lists about $1.5-2 billion more in assets than liabilities. $1-2 billion of customer money is "missing".

That's what we know. That isn't enough to arrest someone on misappropriations, embezzlement, fraud, or theft charges. Until the trustee and law enforcement get more information there can't be an arrest.
 
D

DaveSimmons

Elite Member
Aug 12, 2001
40,730
670
126
Just to answer this part:

Are any of our brokerage/annuity accounts safe?
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If you stay away from shady hedge funds , then yes for brokerages. A reputable brokerage like eTrade or Schwab will be a member of the SIPC (Securities Investor Protection Corporation) the stocks and funds equivalent of the FDIC for banks.

http://en.wikipedia.org/wiki/Securities_Investor_Protection_Corporation

This covers the case of brokerage using investor money for unauthorized trades. It doesn't cover losses from bad investments, including investments recommended by the broker. If they convince you to invest in Enron, that money's gone.

So: if you stick with a SIPC member brokerage and buy something sensible like Vanguard index funds then you can rest easy.
 
D

Darwin333

Lifer
Dec 11, 2006
19,946
2,330
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Not only is he a rich bankster but he used to be in Congress. We still haven't started indicting the banksters that committed untold amounts of fraud that helped cause the "Great Recession" so why would you expect them to bring out the handcuffs for the latest bankster to commit crimes?
 
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