MF Global: JP Morgan Produces Smoking GunRead the entire article here
By Janet Tavakoli - HuffPost Business
When New York-based MF Global collapsed on October 31, 2011, its $41 billion in assets made it the eighth largest bankruptcy in U.S. history and the biggest financial firm to implode since Lehman in September 2008. Then Chairman and CEO Jon Corzine is connected to the head of one of his key regulators, the Commodity Futures Trading Commission (CFTC), through his former protégé at Goldman Sachs, Gary Gensler. He also knows the Fed's William Dudley, a key member of the Fed's Open Market Committee, from their days at Goldman Sachs. The Fed approved MF Global's status as a primary dealer, a participant in the Fed's Open Market Operations, less than one year after Jon Corzine took its helm. Corzine is also a former New Jersey governor, a former New Jersey U.S. senator and was a major campaign contribution bundler for President Obama.
MF Global failed because of a disastrous leveraged bet on weaker European sovereign debt made by Jon Corzine. The problem wasn't that the debt defaulted, rather that he didn't have the money to throw in the pot when it was his turn to ante up. The firm filed for bankruptcy protection Oct. 31 after dipping into customer accounts. Around $1.6 billion of customers' money is still missing.
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According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage". In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia
Thursday, April 5, 2012
Janet Tavakoli does an excellent job tracing the events that took place during the last days of MF Global. Jon Corzine's leadership skills were either very bad or just fraudulent. We may never know for sure if the Justice system decides not to thoroughly investigate what really happened at MF Global in 2011. You see how Goldman Sachs seems to have tentacles in all the important places?