Corzine – by far the largest rogue trader of all time
December 13, 2011
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Today has been a new day of hearings about the MF Global bankruptcy. Corzine has again been questioned about where the client money is and again repeated his “I have no idea about where the money went”. Is this to be believed?
What we know is that the 200 year old company was “taken over” by Corzine and transformed from a quite broker-dealer into a highly speculative company with huge leverage. As Reuters reports, Corzine had all the characteristics of a rough trader, perhaps the biggest of them all (the open sovereign position of MF Global was 6,3 billion dollars!). Their bet failed and now they are all in the soup. But the backlash on the Hill is pretty severe, although it remains to be seen what consequences this will have for those responsible, both at MF Global and at the regulators.
While this soup is simmering in Washington DC, farmers are suffering around the country due to losses on their future accounts. This has been referred to at the hearings. But if you want to hear an angry voice from the West, listen to this one. She accuses the regulators for having screwed up completely and has folded her futures company and advised all her clients to go into physicals. The system will implode before Christmas!
And to add to her conspiracy theory, it has been noted in the news that Corzine held a fundraiser in his private NY apartment earlier this fall for President Obahma (tickets for the simple sum of $ 35,000) and that Bill Clinton received $ 50,000 from MF Global for “consultancy services” just weeks before the firm went under.