Thursday, December 8, 2011

Jon Corzine Is Full Of Shit And A Liar

Jon Corzine has released the written testimony that he will make before Congress today.  It has been highly polished up by his legal advisers and contains so many "I can't recall's" that even Bill Clinton would blush. While the entire testimony has very little credibility with regard to substantive issues,   I just want to address one specific quote from the testimony because I know - for a fact - that Corzine is lying. From page 17 of the prepared testimony:
I did not, however, generally involve myself in the mechanics of the clearing and settlement of trades, or in the movement of cash and collateral. Nor was I an expert on the complicated rules and regulations governing the various different operating businesses that comprised MF Global. I had little expertise or experience in those operational aspects of the business.
Here's the full testimony:  LINK  If you take the time to read the full testimony, please try not to puke like I nearly did over the obvious lies and legally refined statements which are designed to obfuscate and cover-up the truth.

Now, earlier in the testimony, Corzine lays out his history of employment and experience in the securities industry.  For much of his career, he was in oversight and management roles which would have required that he passed certain industry exams. One of them is the Series 24 principal's exam.  Having just studied for and passed this particular exam, I know for a fact that the material covers the rules regarding "movement of cash and collateral."  I spent a few hours making sure I understood exactly what the regulations prescribe.  For Corzine to have been promoted into the positions he lays out in his testimony, it means he had to pass the Series 24 exam and he spent part of his time at Goldman having to deal with the issues from a practical standpoint covered by the material in the Series 24.  In other words, he knows the regulations and mechanics and he's lying in his testimony.

Moreover, having worked as a trader on a big bond trading desk, as Corzine did at Goldman (he ultimately ran the Government bond trading operations at one point), I know for a fact he had to have been intimately aware of and knowledgeable about "back office" (the functions to which he refers to as "clearing and settlement") functions and mechanics.  It would be impossible that he would have risen through the ranks at Goldman in the bond trading business and not have spent a good part of his of time understanding and dealing the "back office operations" of the securities trading business.  Impossible.

Unfortunately for justice - but fortunately to prove my contention that he will extract himself from facing prison by exploiting the inability of Congress to ask the right questions - the people who will be grilling him, Senators and Reps, have no knowledge of how Wall Street functions and they will not take the time to figure out the right questions to ask. Nor will they make an earnest attempt to hold him accountable.

There's plenty of other statements that can likely be proved to be false.  For instance he claims to have not made contact with NY Fed Chairman Bill Dudley during his time at MF Global.  Those two worked together at Goldman Sachs. MF Global was admitted to the Fed as a primary dealer under Corzine.  I find Corzine's statement therefore exceedingly difficult to believe.  Let's see the phone and email records.  But the best shot this country has seeing justice served against Corzine is having private lawsuits waged against him which will bring in expert witnesses to educate the courtroom and jury as to exactly why Corzine's testimony today is one big lie.  Let's hope and pray that happens.


  1. Anyone catch Robot Trader's comments over at WSB mocking the victims of the MF Global scam? I guess he mocks rape victims as well. A proven shill and troll is he.

  2. Oh it'll happen. I'd wager there are large lines of lawyers and disgruntled investors waiting for a piece of this filthy Corzine.

  3. ...Europe's done, we're next...

    "Effete Corps of Snobs Running the Show" The detrimental effect of the power elite who are now engaged in the final looting of a public focused on celebrity culture and self. This episode of the Effete Corp features Jon Corzine, VP Joe Biden, Hank Paulson, Lloyd Blankfein, Jim Cramer, the Ubiquitous MSNBC glamor girl, Kim Kardasian, Ben Bernake (The Bernak) Tim Geithner, NYC School kids, Harvard, SUNY kids, NAZI's, OWS protesters, with a manipulated sound bite by Bernie Frank. Of course the life and death news of Fukushima is also covered in contrast. This video is based on a previous work.. a youtube illustration of disgraced-resigned NIxon VP Spiro Agnew. During his fifth year as Vice President, in the late summer of 1973, Agnew was under investigation by the United States Attorney's office in Baltimore, Maryland, on charges of extortion, tax fraud, bribery and conspiracy. In October, he was formally charged with having accepted bribes totaling more than $100,000, while holding office as Baltimore County Executive, Governor of Maryland, and Vice President of the United States. On October 10, 1973, Agnew was allowed to plead no contest to a single charge that he had failed to report $29,500 of income received in 1967, with the condition that he resign the office of Vice President. Agnew is the only Vice President in United States history to resign because of criminal charges. Ten years after leaving office, in January 1983, Agnew paid the state of Maryland nearly $270,000 as a result of a civil suit that stemmed from the bribery allegationsAgnew came to enjoy the privileges that being vice president brought to him, particularly access to the rich and famous. He became close friends with Frank Sinatra, Billy Graham and Bob Hope, and consorted with leaders around the globe. He also took in stride his own newfound fame, as his utterances often made newspaper front pages and were major stories on the evening network news broadcasts. Invitations for Agnew to give speeches across the country flooded into his office, and he became a top fundraiser for the Republican Party.

    Spiro Agnew congratulates launch control after the launch of Apollo 17 in 1972. In April 1973, when relevations about Watergate began to surface, Agnew was the choice of 35 percent of Republican voters to be the next Republican nominee for President, while then-California Governor Ronald Reagan was second on the Gallup Poll.

  4. Analysis of Jon Corzine Statement MF Global - Open Letter 2 to CME

  5. i'm reading the testimony for some fun this morning and making some notes:

    - "their plight weights on my mind every day - every hour" - yeah right Jonny, good one
    - "...since my access to many relevant documents...all of which are essential to my being able to testify accurately" - yes how convenient, thanks for reminding us
    - "committee turned down my request to testify voluntarily in January" - yes of course, b/c in that extra month, in addition to the month you've already had to get the info you need, you'd come up with the answers, but since we're in December and you & the committee have concocted this little plan, you don't have the answers
    - thanks for the life background Jon - we don't care you joined the Marine Corps, you just lost/stole honest, hard working peoples money, and oh yeah, you bankrupted a company on your crappy leveraged bets
    - thanks for the clarification you had no ties to MFG before its then CEO abruptly resigned - we owe ya big time for taking over the reigns
    - when he took over, MFG made most of its revenues from commissions; but HFT traders were killing their commissions/revenues; MFG was losing money big time (ergo, Jonny needed to be the hero - hey, the ship was gonna sink anyways) - but yeah, before he took over, MFG lost about $168M in the year prior - this justifies the risk taking of course
    - they hired Boston Consulting Group to redefine their business strategy - er, never hire BCG ever
    - MFG was turned into a broker dealer, then investment bank - this new plan was made public; see, the public knew of the trouble MFG would eventually get into
    - 60% of revenues used to go to employees - they restructured the contracts to lower salary & increased bonus based on performance - see, that Goldman Sachs experience really paid off

  6. cont'd:

    - as per a CFTC order, Promontory was retained to review MFG's compliance systems - ergo, don't ever hire Promontory again; er - we catching the drift here Jonny - this wasn't your fault buddy, there were checks and balances
    - you bought options/stock in MFG - $3M worth of stock - how about you disclose how much you made??
    - wow, MFG reduced leverage during his tenure from 37.3 to 30 - were they betting on sovereign default on the scale of 30:1 jonny before your tenure?
    - blah blah on RTM's - repo assets - sure, prior to his appointment, MFG held about $9B in sov'n debt - summer of 2010, met with traders to see how to increase profitability - er, Jonny, we all know by now you're the king of taking on risk - let's subpoena these traders to see what they have to say -
    - it was through these discussion he became an advocate of purchasing Euro Sov'n debt RTM's - yeah, sure Jonny
    - ok, we get it Jonny, you're the consummate feel good ceo, you chatted with everyone, traders, BOD, managers, and you reached a decision like a tight knit family -
    - discusses at length the background to the trades & what went on behind the scenes prior to the losses - thanks for pointing out you had limited contact with Gensler - we were wondering about that but thanks for taking up 1 of 21 pages of your testimony
    - October 2011 - losses on revenues, high correlation in volatility in many markets - you think Jonny - please tell us why that is and how we got to this degree of correlation
    - damn FINRA and their rule changes - hate when that happens - i know, where were they when MFG had those sov'n debt positions before you joined;
    - but wait, loss reported by media (ie. sov'n debt) not related to these positions - it was a valuation adjustment against a deferred tax asset - such asset created years before jonny joined - losses accumulated over years - mostly before jonny boy joined - MFG was allowed to recognize as an asset potential tax benefits in future years - due to accounting rules (jonny doesn't know anything about accounting), by sept 30, 2011, mfg couldn't recognize tax benefits as assets thus with advice and knowledge of external auditor, recognized the losses of about $120M.
    - so let me get this straight - there's a $120M hit to your finances via accounting rule changes & you didn't know about this or planned for such an event? Really? I'm missing something here b/c this is sheer negligence.
    - so recognized losses and the bad luck cascaded from there, tried to liquidate, confidence lost, bankruptcy
    - during oct 24-28, firm took extraordinary steps to ensure it could honor customer requests to withdraw funds/collateral. - you're the man jonny, actually, you're extraordinary
    - it was discovered around oct 29/30 customer accounts could be reconciled - really? only then? aren't you always supposed to have customer accounts 'reconciled' through sunny days and earthquakes?
    - told on oct 30, 2011 of the lost client money; it's ok folks, he was stunned
    - he ultimately had overall responsibility for the firm - that's the smartest thing I've read
    - then he quotes what Dave quoted above - that he wasn't an expert; so that's in jonny- 1 and 1/5 of a page on the lost funds? really? oh yeah, you don't have access to the documents/notes left at MFG...oh yea, ur sorry. High standards you're setting for other ceo's jonny.

  7. We're all schlumps..

    " the U.S. markets are rigged, with the elite and connected getting a distinct unfair advantage over the rest of us schlumps. "

    John Crudele: Bloomberg News confirms that stock market was rigged

    So now do you believe me? The stock market was rigged.

    It has been a little lonely telling this story over the past few years.

    But now that another news organization has finally gotten off its lazy butt, I'll tell it again: Under former Treasury Secretary Hank Paulson, confidential government information was regularly leaked to select people on Wall Street.

    As I've explained many times before, the Post got hold of Paulson's telephone records back in 2009. And the phone logs show that Paulson, the former head of Goldman Sachs, regularly spoke with influential people on Wall Street with whom he shouldn't have been communicating. These phone calls could have been -- let's use the word "enriching" -- for the recipients.

  8. William K. Black should handle this shit. He dealt with the S&L shit in the eighties and he KNOWS about the pervasive corruption. He'd see to it that the shit-eating Corzine would spend the rest of his days taking it up the ass in prison.

  9. Corzine To Take the 'CEO Defense'

    As I said at the time, when firms turn in 'perfect trading records' you know that they are gaming the system somewhere, exploiting some advantage.

    If you think that your Wall Street funds are safe, you are kidding yourself. If you think you are safe in bullion, but do not own it and know exactly where it is, you don't have it. You may own a claim to something, and will stand in line and take what you are given like the MF Global customers when your time comes.

    What will it take for people to realize that what is happening to 'the other guy' will happen to them too?

    Former SEC Chairman Harvey Pitt was just commenting that the rules do not matter if the people running the financial firms do not have basic character and integrity and honesty. Of course it does not work voluntarily. Self-regulation is a joke to sociopaths and psychopaths.

    And, Harvey, it does matter that they are rarely prosecuted for their crimes, and agree to settlements hardly more than a slap on the wrist. Of course the law does not matter if it is not enforced. As a former SEC Chairman under the last Republican Administration in which the Treasury Secretary was leaking insider information on a regular basis you should know this, and most likely do.

    Hey I know how to fix government corruption. Let's just get rid of the government! Then the stealing can really flourish.

    Nothing can change while people remain complicit fools in their own destruction.

  10. So Corzine's an overpayed executive, figure-head, that doesn't have a clue what his Company is doing.


    It's the Ken Lay defense.

  11. Grain and dairy ~ how is your bread buttered?

    Presenting All That Is Wrong With America: Here Is The Top Contributor To The House Agriculture Committee Chairman

    As part of the MF Global hearing, we just heard a very dignified and shall we say it disgruntled introduction by House Agriculture Commttee Chairman Frank D. Lucas (Rep-OK) where he said it is "critical" to shed light on the MF Global matter, and which in no uncertain terms made it clear just how disgusted he would be with MF Global if it was found that Jon Corzine is guilty of stealing client funds. Well, we decided to take a step back and look at the Republican's top campaign donors. To our complete lack of surprise, we found that the top lifetime donor to the Honorable Mr. Lucas is... the American Bankers Association. And scene.

  12. Justice?....deterrent???..lololol...

    Wells Fargo to Pay $148 Million in U.S. Muni Bid-Rigging Case

    The settlement is the latest in a more than five-year investigation into how Wall Street banks conspired with local- government financial advisers to reap excessive fees on investment deals by rigging auctions and carving the market up among themselves. JPMorgan Chase & Co., (JPM) UBS AG (UBSN) and Bank of America Corp. (BAC) previously settled similar cases.

    “Wachovia won bids by playing an elaborate game of ‘you scratch my back and I’ll scratch yours,’ rather than engaging in legitimate competition to win municipalities’ business,” Robert Khuzami, the SEC’s Division of Enforcement director, said in a statement.

    Such environments eventually experience
    massive blowups, catching everyone
    oª-guard and undoing years of stability
    or, in some cases, ending up far worse than
    they were in their initial volatile state.
    Indeed, the longer it takes for the blowup
    to occur, the worse the resulting harm in
    both economic and political systems.

  13. Here's what Corzine was. He did not need to know anything, This was his purpose Too bring the sheep to the shearing.

    A rainmaker is any person who brings clients, money, or respect to an organization based solely on his or her association. Traditionally, the term "rainmaker"

  14. Corzine trial update

  15. Asleep at the switch...who knew?..I thought it was a requirement for regulatory auditing...

    The MF Global Hearing asks the CFTC "Are you the primary regulatory auditor of MF Global?" the answer comes back NO! the DSRO (CME) was the primary regulatory auditor. Why then did MF Global fail if it was passing CME regulatory audits? Could it be a problem with the fox managing the hen house?

  16. Keep pressuring...let them know you're watching..

    Warren is Tapped by Congressman Dennis Cardoza

  17. We No Longer Have A Justice System In The US

    Sarbanes-Oxley requires him as the CEO of a company to (1) guarantee that effective risk controls and rules are in place and (2) monitor their compliance. It renders failure to do so -- that is, the old-fashioned "I didn't know" defense that was routinely used after 2000-era failures in the Internet space -- a felony.

    Now of course Mr. Corzine is entitled to the presumption of innocence and he is entitled to a trial before being pronounced guilty, but the law on this point is clear: Executives, the CEO and CFO in particular, are required under Sarbanes-Oxley to factually know about matters such as this and they are required to attest to that knowledge -- and the presence of appropriate and sufficient risk controls under penalty of felony indictment.

    It appears that Mr. Corzine has admitted in front of a Congressional Committee that he does not know, and therefore this appears to be a prima-facie admission that he is in direct violation of this law.

    If this is not dealt with on an expeditious fashion and the law is not enforced you have just seen proof on national television that there is no longer a rule of law in this nation of any substance.

    The investigation will go something like this...

    It will be unparalleled...

  18. No seriously I'm done with commenting on MF GLOBAL scandal....No seriously! HAHAHHAHAHA love you double d

  19. LOL. I was done for a while but I become extremely irritated reading Corzine's testimony and this was my "couch" outlet.

  20. You're right. He is full of it and it's oozing out all over the place. Makes me wonder how many books were being kept.

  21. Gold is cheap relative to the idea that you could have a life’s fortune on a statement from a clearing agent and find out that you don’t have a penny left anywhere. Which should you have had, physical gold or that clearing house statement? Gold is cheap because of the condition of other things....

  22. I just cringe when I think of all the sheep waiting to get sheared, many friends of mine. They will just end up hating all of us even more. Class warfare between the haven't got anything's and the just getting by's will be the norm.


  23. Just as we have socialized the losses of a failed and corrupt system, we have in essence "socialized" the immorality of its defenders.

  24. Ray, man, I stopped preaching...friends agree there's crazy debt, ue is high, growth is dead, they understand qe...but when I ask what the end result is, they say it'll work out....very few come back with more questions but hey, reaching 1 is better than none.

  25. Dec. 5 2011

    Jim Willie: “The Public Will Not Wake Up Until At Least One Million Private Accounts Are Stolen”

  26. Thursday, December 8, 2011
    ECB cuts rate, has no bigger bond-purchase plan
    The ECB, unlike the Fed, is unable to create money as needed during a crisis. Any aggressive expansion of the bond-purchase plan will force a highly public recapitalization of the ECB. A public recapitalization places confidence at risk, so in steps the Fed to purchase bonds and supply liquidity as the lending of last resort. Why do you think Geitner is traveling around Europe saying Europe is making progress?

    So here we go again. The great private debt collapse of 2008 morphed into the great sovereign collapse of 2011-2012. In both cases, unbeknownst to the public the Fed will be the lender of last resort at the expense of the dollar. Unfortunately, expansion money and austerity programs at the expense of nation's sovereign might not sit will with those forced to accept it. Gold and silver are watching closely.
    Severely negative gold lease reflects paper selling and a market waiting on time. Watch the negative spreads collapse and spreading activity (uncertainty) soar right before the upward explosion.

  27. When asked whether he ever authorized the transfer of customer funds from segregated accounts, Corzine said "I never intended to break any laws. "

    What kind of a goddamn answer is that? And these spineless senators let him off with that answer?

    Answer the question, cocksucker. Did you authorize the transfer or not?

    These chicken-shit coward senators should have slammed that shit in his face IMMEDIATELY and demanded a fucking answer.

    What a steaming load of dogshit.

  28. Wow...

    On Corzine - MFG in the fog of war

    I recently had a conversation with an individual (we'll call him Bob) who had three MFG accounts. He, like many other customers, smelled a rat with MFG as the stock price plunged and the FINRA issues with the Euro bond positions became known.

    Bob voted with his feet. He closed off all open positions. He got back to cash. Then he requested a wire transfer for the balance(s). He left a small operating balance in the accounts in order to keep them open. This fellow was small potatoes. Two of the accounts were under $20k. The other was $215k.

    Wire transfers to a bank were requested.

    According to Bob, the wires went out on Wednesday, October 26 (four days before BK). All three wire transfers were received on Thursday October 27.

    But on Friday, October 28, the bank that had received the funds reversed the wire transfer for the larger amount. The transfers for the two smaller amounts were not reversed.

    Basically XYZ has to give ABC a blanket guarantee that they will not get hurt by the request.

    Here’s the rub. I’m told that in the matter at hand, the "XYZ" bank operating on behalf of MFG was JPM.

    If I’m right that a LOI was required to claw back a wire transfer, then - assuming my information is correct, and I think it is - it had to have been JPM that wrote the indemnity letter. (No one would have acted on a LOI from MFG on 10/28).

    I'm speculating quite a bit. But it’s still worth considering.

  29. Can't get William Black on cnbc..wants to know where's the justice dept?

    Capital Account: William K. Black on MF Global and Jon Corzine Culpability (12/08/11)

    From Goldman Sachs to governor to grilling, Jon Corzine former CEO of the now bankrupt MF Global testifies on Capitol Hill. He claims he is clueless about how and where the possible $1.2 billion dollars of his client's money is that is missing. How has all of this happened three years after the financial crisis when Wall Street was supposed to be reined in? And the golden boys of Wall Street have their Goldman tentacles spread over the MF Global case. The head of the CFTC - MF Global's regulator - has recused himself from the MF Global probe because he worked with Jon Corzine at Goldman Sachs. We speak to William K. Black, a former regulator who during the Savings and Loan crisis oversaw more than 10,000 criminal referrals, 1,000 felony convictions, and where hundreds of bankers went to prison.

  30. This one's for you Dave. Fuckers.

  31. fax to wh,congress,sec,cftc,etc...

    Jon Corzine Dodges the Fraud Question

    It's as if Jon Corzine's PR machine is in top spin mode. You'll
    recall Jon Corzine is the former head of Goldman Sachs and former CEO of
    MF Global that appeared in front of Congress yesterday to answer
    questions about an estimated $600 million to $1.2 billion in missing
    money from the segregated accounts of customers of MF Global.

    Yesterday and today, I heard confusion about whether or not MF
    Global's diverting customer funds was allowable and the possibility that
    customers will eventually get the money back.

    Let me be clear. The diverting of customer funds from segregated
    accounts is not legal or allowable, and even if the money is later
    "found" it is fraud.

    Jon Corzine was a bond trader in his past life and he says he doesn't
    know where the money is and that he didn't understand the details of
    the operations of MF Global, which appear to be a mess due to negligence
    or intent.

    Instead of unwinding the trades, it appears that MF Global illegally
    wired money from customer accounts to satisfy margin calls on MF
    Global's trades. If that illegal activity happened, Corzine as a bond
    trader aware of risk and as the head of MF Global, knew it or should
    have known it. This should be the focus of Congress' investigation.
    Wire fraud is a federal crime.

  32. Ellis Martin Interviews Jim Sinclair

    In this interview Mr. Sinclair speaks to the issue of financial woes in the European Union affecting the volatility of the gold market. He also offers stark advice for those seeking to protect themselves from a government and a fed gone wild. Additionally, Mr. Sinclair addresses a proven formula for building political stability in a developing country while doing business there, more or less assuring success of a resource project.

  33. Not condoning this but what does Corzine's term equal per dollar taken?

    LOS ANGELES (AP) — Jodie Foster's estranged father faces more than 25 years behind bars after being convicted of bilking more than $100,000 from the poor and elderly in a home-building scheme.

    I know congressmen are exempted from insider trading but do any laws appl to them?

  34. Congress pretends to "investigate" and JC pretends to "testify". No suprise. And we think this will all end how?

  35. Dave, you're starting to sound like me - I don't know whether that's good, or bad...

  36. I think of all the lambs holding out to get sheared, many buddies of my own. They will just end up disliking all of us even more. Training combat between the haven't got anything's and the just getting by's will be the standard.

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