Three Stooges Testify about Missing Money at MF Global
Greg Hunter’s USAWatchdog.com
I watched in amazement today at the Senate Hearing on the collapse of MF Global about 6 weeks ago. The three top executives testified about what they knew and when they knew it. CEO Jon Corzine, COO Bradley Abelow and CFO Henri Steenkamp all sat there and, essentially, said none of them knew where $1.2 billion of segregated customer money went. It might as well have been Moe, Larry and Curly testifying. As I watched these three, the basic theme was none of these guys knew what was going on in the company they were paid to run. I guess they have proof they didn’t know what they were doing because the company they were running went bankrupt. Corzine said repeatedly, “I never gave any instruction to anyone at MF Global to misuse customer funds.” If that is not a well-rehearsed legal answer, I don’t know what is.
Other legal words and phrases I heard from the three MF Global executives include: “To the best of my recollection, to the best of my knowledge, I do not recall, and no reason to believe,” just to name a few. When COO Bradley Abelow was asked the simple question of where did the money go? Mr. Abelow said, “I do know what happened, and I am awaiting results of the investigation to inform us all.” What? So we are awaiting the results of an investigation to find out what these three stooges were paid to know?
The CFO testified that when he knew the company was going down, the regulators were called at around 2 am. My question is what number did they call? Was someone at the offices of the Chicago Mercantile Exchange (CME) or the Commodity Futures Trading Commission (CFTC)? Why did these guys have a phone number of the CFTC and CME that they could call at 2 am? Did they know the company was going down, or are they that well acquainted that they have a private number that could be called in the middle of the night? Are the CME and CFTC giving 24/7 service?
My next question is about how margin calls were being paid. All three executives confirmed that MF Global was borrowing money to pay margin calls. Corzine said his firm was using “. . . draws against our liquidity lines at the banks.” So, the firm was using borrowed money to pay operating costs? I am not an expert, but wouldn’t that be a red flag to the CFTC and CME? To me, that’s like using a draw against your credit cards to make your house payment. If you are doing that, it probably will not be long before you default.
I find it absurd that Jon Corzine, a former top executive at Goldman Sachs, a former U.S. Senator and former Governor of New Jersey, is that stupid or that much in the dark about the company he ran for 19 months. The only thing that was missing from the testimony today was Moe slapping Larry and Curly for the answers they were giving. (For more on today’s Senate testimony, click here.)
People at MF Global are going to start talking and Corzine, the COO and the CFO will not be protected. If you were just an employee at MF Global trying to earn a living and now you’ve been laid off with no possibility of a job, why would you protect a multi-millionaire like Corzine?
This is no surprise to me … today the corporate model is about using other peoples money until it is gone and then move on to the next flower. I have seen people in the foreclosure field service work use the business model as they get subcontractors to do the work and wait 30-60 days or more if you work directly for HUD on foreclosures.
This is how trickle down chump change works as those at the top rake off 10-20 percent at each level of contracting until the man who does the actual work and has paid all of the variable costs associated with a paticular job while the upper tier contractors shuffle paperwork and do not add value to the job.
Gary Gensler at the CFTC should be embarrassed….Corruption rules
Explosive Interview Jim Willie “JP Morgan Crashed MF Global to Avert COMEX Failure, they stole all the accounts that were going to take delivery”
This is an absolutely Explosive Interview Silver Doctors has that Jim Willie of the Golden Jackass
did with Bull Market Thinking.
If this is true then this is completely Explosive and the Comex and JP Morgan stole everyone’s money to avoid a default! But don’t expect the government to hold them accountable, especially since the Judge assigned the trustee for MF Global that is a counsel for JP Morgan.
We had a COMEX system failure in November. COMEX was ready to default on gold and silver in November. Rather than honor delivery demands in gold and silver- JP Morgan simply stole the money in the accounts that were going to stand for delivery. They had their pockets picked while they were standing in line at the delivery window. Notices of delivery were replaced at stolen accounts!
i find it hard to believe how little attention the missing funds are getting. i’ve talked to friends in the banking industry who weren’t aware that clients brokerage accounts are missing and the clients had margin calls on their positions because of this fraud. the msm is spinning this so that the bankruptcy aspect is what most people are taking away from the coverage when the real story is the missing funds.
greg’s previous article, “Signs of Disintegration,” may have pointed out the smoking gun here: re-hypothecation. it was not a term i was familiar with but i made it my business to learn about it. extremely frightening. i hope martin armstrong is wrong but i suspect he is right.
it seems that broker dealers are allowed to use the assets in our accounts as collateral for their trades. huh? yes, it’s true. it normally doesn’t cause any problems because broker dealers don’t normally go bankrupt but these are not normal times. it appears that as soon as mfg started to go south the counter-parties to mfg’s trades demanded their collateral which it turned out was all those commodities that mfg was holding it the street name for their clients.
if this is what happened, once word gets out, it will be incredibly damaging to the brokerage industry. i don’t think commodities are covered by sipc. i just looked up how to have my ira’s transferred out of the street name and have certificates issued in my name. my preliminary research indicates that it’s possible but you will need a lot of persistence and a lawyer to get it done.
before i panic anybody, let me be clear, this is supposition on my part and i am not a banking or investing professional.
Yep – legalized theft. When my father died years ago he said something that pretty much describes today’s society. Quote: ” Harold, I just don’t understand today society in the US. People are rewarded on ‘Bull Shit’ and not for their hard work.” He died the next day. Rewarding themselve by theft- – Jesus – in the old days these gluys would be eithe strung up or put in jail. Just no real honesty anymore. I remember finding a mans wallet in a phone booth about 20 years ago and I took it to the police station (it looked as though he had his hard earned pay in it) and when I told my X-wife – she gave me heaps stating the police probably took the money and tossed the wallet. What? Sooo … here we are – no justice, no morals, and soon no country.
When you have liars and crooks asking question of liars and crooks there is no recognition of liars and crooks. So, who did it? THEY!
John Corzine sounds a lot like a familiar teenager (Jeff Spicoli) in an 80’s movie called “Fast Times at Ridgemont High” and his coversation with his teacher Mr. Hand.
Mr hand: “Why are you continuously late for this class? Why do you shamelessly waste my time like this?
Jeff Spicoli: “I don’t know”
Mr. Hand: “I like that. ‘I Don’t Know.’ That’s nice” I see a lot of similarities.
Greg, I am sorry I disagree.
The thing that was missing today was the “body”. As soon as they find the body it will reveal all the evidence and that’s why the three stooges can play dumb, bumber and dumbest right now.
Of course the body probably has cement shoes on and is on the, pick a river, the bottom watching the fish go by. Corzine better hope the body doesn’t float to the top.
Ah, sounds like a good idea. Greg it’s time to go fish’in.
Thanks for the perspective, Greg.
This is one of many current, recent, and past examples that will prove, once again, that the Wall Street globalists are running the show in Washington. The missing $2.3 Trillion dollars from the Pentagon that was announced on Sept 10, 2001 is still missing and nothing has been done to increase public awareness or seriously investigate this massive loss of taxpayer dollars, while the media has remained virtually silent.
In another current example, while the Massachusetts AG is going directly for the throat of corrupt financial institutions who fraudulently created mortgage derivatives via mass replication and duplicate sales of mortgages (to the tune of trillions of dollars), resulting in the simultaneously collapses of the global economy and the US real estate market, AG’s from other states are colluding on a plan that will slap the offending parties with a paltry fine of $25 Billion while the perpetrators remain on the street rather than spending the rest of their lives behind bars.
This is the paradigm that we live within today in these United States. The fox is not only guarding the henhouse – the fox is running the whole show.
And even more ominous, the globalist foxes who are controlling and profiting from our economy and corruption are using their influence and control to force the United States into possible direct military confrontation with the strongest nuclear powers on the planet. In one recent example, President Obama is repeating the Roosevelt doctrine in the South Pacific.
To give you some background, prior to WWII, the Roosevelt Administration enacted policy that prevented Japan from accessing energy resources in it’s “southern resource area”. Both Japan and the United States knew that Japan’s continued efforts against China would fail without access to these resources, forcing the Japanese leadership and Emperor to either lose face in front of the Japanese nation (an impossible option if you understand Japanese culture), or to strike US naval assets in the Pacific – specifically the US Pacific fleet which had just been relocated from the US west coast to Pearl Harbor, within striking distance of Japanese naval air forces.
And just a few weeks ago, President Obama said the following in a speech to Australia’s parliament:
“Our enduring interests in the region [Asia Pacific] demands our enduring presence in this region … The United States is a Pacific power and we are here to stay … As we end today’s wars [i.e. the defeats and retreats from Iraq and Afghanistan]… I have directed my national security team to make our presence and missions in the Asia Pacific a top priority … As a result, reduction in US defense spending will not … come at the expense of the Asia Pacific” (CNN.com, Nov. 16, 2011).
Take a read here to get a broader picture:
For those who haven’t been watching China closely, this is a direct and overt threat to China’s energy security in the region and an “in your face” act of US policy that is directed towards thwarting Chinese growth efforts. Very similar to Roosevelt’s move against Japan more than 70 years ago.
Keep in mind that in the world of policy and global strategic planning, there are few coincidences. Like Russia, China has publicly promised military intervention if Iran is attacked. The noose around Iran is closing tighter as NATO and US allies are currently working to replace the Syrian regime and Pakistan is facing increasing US pressure (and a US attack) after refusing to support US covert activities against Iran from Pakistani soil.
US forces have been stepped up around China, the missile defense shield against Russia is in place (Iran has no nuclear weapon and even if they did, an attack would invite annihilation – the shield is targeted towards Russia), and targeted attacks have been taking place inside Iran against military and industrial sites – within the same time frame that Iran has captured a US surveillance drone operating within sovereign Iranian airspace.
If anyone has any remaining doubt that the globalist controlled US and NATO forces aren’t poised and waiting for their moment to strike Iran and confront Russia and China, go back and read Zbigniew Brzezinski’s “The Grand Chessboard” from 1987. It reads like a history book that was written in advance. Or, it reads like a policy book that was followed almost to the letter. Here’s a link to pdf copy – I highly recommend it:
To place things into full perspective, Syria has a defensive pact with Iran. That draws Iran into potential direct conflict with US and/or NATO forces in the event of an incursion into Syria. Don’t rule out the very serious risk that both Russia and China – who have mutual energy security interests in both Syria and Iran – aren’t prepared to respond at various diplomatic, economic, and possibly military levels once direct western military engagement with Syria begins. Hence stepped up US activity in the Asia-Pacific region. While I’m on the subject of Syria and possibly Turkey, we now may have strong insight into why Turkey and Israel have been feigning disagreement over the Israeli killings of Turkish peace activists. That supposed breach in diplomacy shields Israel if Turkey acts as an aggressor towards Syria, under the guise of humanitarian aid to the Syrian rebels. Coincidence? Maybe. A very fortunate one for Israel who now has some insulation from Turkey.
In my opinion we’re witnessing the planned creation of a perfect storm on multiple levels by globalist interests. Economic collapse, potential nuclear military showdowns, environmental treaty collapses (blamed on inequality between strong industrial nations and other lesser producers), and mass political upheaval in nations around the world.
If you believe in coincidences, it’s enough to make some think that a peaceful, humanitarian organization needs to have some level of global super-authority to protect humanity and stop these things from happening. And if you don’t believe in coincidences, it’s enough to make someone think that strong forces are manipulating events – that could be used as an excuse to convince people that some sort of global super-authority will prevent these things from happening in the future – enabling the globalist forces to assume control under the guise of peacemakers. But first people have to be forced to suffer through these creations as a means to generate demand for the necessary changes. If you’re one of those who still believes in coincidences, read The Grand Chessboard and then read Brzezinski’s role in building the Mujahideen who became Al Qaeda. Once you begin to connect the dots your belief in coincidences will quickly transform and you will have a much clearer picture of reality.
Start looking at the iceberg that lies below the surface. It’s frightening and it’s massive, but as individuals with families and lives to consider and protect, knowing what’s there and what to be prepared for is critically important in these days of deceit and deception.