Our government’s extended protection of MF Global’s Jon Corzine – the former $ trillion taxpayer-funded Goldman Sachs bailout Chief – will most likely eliminate the threat of all criminal charges against one of the largest Ponzi ‘artists’ to walk the face of the earth.
And with Feds ‘quietly’ bailing out the likes of Harley-Davidson, Verizon, Toyota, Citigroup, Bank of America, Swiss-based UBS, Britain’s Barclay and countless others – not to mention ‘secretly’ putting Americans on the hook for over $250 trillion (with a ‘T’) in global derivatives – they simply can not afford to let US taxpayers pullback the curtain on one of their ‘wizards’ operating freely in the land of make-believe.
Between 2008 and 2010, Goldman Sachs sent billions of American taxpayer dollars to 32 entities, including many overseas banks, hedge funds and pensions – as reported by the Senate Finance Committee. Asked about the significance of Goldman’s ‘disclosed’ global recipient list (under threat of subpoena), Senator Chuck Grassley stated, “We thought originally we were bailing out AIG. Then later on…we learned that the money flowed through AIG to a few big banks, and now we know that the money went from these few big banks to dozens of financial institutions all around the world.”
At the discretion of the Federal Reserve Bank of New York which was led at the time by Timothy Geithner the current U.S. Treasury Secretary. “I think it proves that he knew a lot more at the time than he told,” Grassley said. “And he surely knew where this money was going to go.”
- 2008 – Bear Stearns – $30 billion
- 2008 – Fannie Mae / Freddie Mac – $400 billion
- 2008 – American International Group (A.I.G.) – $180 billion
- 2008 – Auto Industry – $25 billion
- 2008 – Troubled Asset Relief Program – $700 billion
- 2008 – Citigroup – $280 billion
- 2009 – Bank of America – $142.2 billion
Right. Back to MF Global.
Let’s check in with lowly ‘commoner’ Ann Barnhardt, and get her perspective posted on SHN nearly one year ago…
The Entire System Has Been Utterly Destroyed By The MF Global Collapse
Dear Clients, Industry Colleagues and Friends of Barnhardt Capital Management,
It is with regret and unflinching moral certainty that I announce that Barnhardt Capital Management has ceased operations. After six years of operating as an independent introducing brokerage, and eight years of employment as a broker before that, I found myself, this morning, for the first time since I was 20 years old, watching the futures and options markets open not as a participant, but as a mere spectator.
The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.
Long shot, I know… but it’s as if America’s financial terrorists knew all along there would be zero penalty for cooking the books.
Keep laughing Jon Corzine. Keep laughing…
MF Global: Largest Wall Street ‘Crime’ Since 2008 – No Criminal Case Likely
(CNBC) A criminal investigation into the collapse of the brokerage firm MF Global and the disappearance of about $1 billion in customer money is now heading into its final stage without charges expected against any top executives.
After 10 months of stitching together evidence on the firm’s demise, criminal investigators are concluding that chaos and porous risk controls at the firm, rather than fraud, allowed the money to disappear, according to people involved in the case.
The hurdles to building a criminal case were always high with MF Global, which filed for bankruptcy in October after a huge bet on European debt unnerved the market. But a lack of charges in the largest Wall Street blowup since 2008 is likely to fuel frustration with the government’s struggle to charge financial executives. Just a few individuals — none of them top Wall Street players — have been prosecuted for the risky acts that led to recent failures and billions of dollars in losses.
In the most telling indication yet that the MF Global investigation is winding down, federal authorities are seeking to interview the former chief of the firm, Jon Corzine, next month, according to the people involved in the case. Authorities hope that Corzine, who is expected to accept the invitation, will shed light on the actions of other employees at MF Global.
Those developments indicate that federal prosecutors do not expect to file criminal charges against the former New Jersey governor. Corzine has not yet received assurances that he is free from scrutiny, but two rounds of interviews with former employees and a review of thousands of documents have left prosecutors without a case against him, say the people involved in the case who spoke on the condition of anonymity.
Hey! It may appear as though Jon Corzine, MF Global and Goldman Sachs are winning the derivatives race towards disaster, but JP Morgan’s got ‘em by a nose:
Five Banks Account For 96% Of The $250 Trillion In Outstanding US Derivative Exposure; Is Morgan Stanley Sitting On An FX Derivative Time Bomb?
(Zero Hedge) The latest quarterly report from the Office Of the Currency Comptroller is out and as usual it presents in a crisp, clear and very much glaring format the fact that the top 4 banks in the US now account for a massively disproportionate amount of the derivative risk in the financial system. Specifically, of the $250 trillion in gross notional amount of derivative contracts outstanding (consisting of Interest Rate, FX, Equity Contracts, Commodity and CDS) among the Top 25 commercial banks (a number that swells to $333 trillion when looking at the Top 25 Bank Holding Companies), a mere 5 banks (and really 4) account for 95.9% of all derivative exposure (HSBC replaced Wells as the Top 5th bank, which at $3.9 trillion in derivative exposure is a distant place from #4 Goldman with $47.7 trillion). The top 4 banks: JPM with $78.1 trillion in exposure, Citi with $56 trillion, Bank of America with $53 trillion and Goldman with $48 trillion, account for 94.4% of total exposure. As historically has been the case, the bulk of consolidated exposure is in Interest Rate swaps ($204.6 trillion), followed by FX ($26.5TR), CDS ($15.2 trillion), and Equity and Commodity with $1.6 and $1.4 trillion, respectively. And that’s your definition of Too Big To Fail right there: the biggest banks are not only getting bigger, but their risk exposure is now at a new all time high and up $5.3 trillion from Q1 as they have to risk ever more in the derivatives market to generate that incremental penny of return.
Bailout Payback! Realtor® double-counting home sales for national media reports: HERE
Oops! HHS Secretary Kathleen Sebelius admits to double-counting in ObamaCare budget: HERE
ObamaCare Double-Counter Kathleen Sebelius destroys key evidence in Planned Parenthood case: HERE
Misleading claims on national budget: HERE
Jesse Jackson, ‘We need more stimulus’: HERE
IRS gives $4.2 billion tax credit to illegal aliens in 2010: HERE
Bankrupt-Bankrupt GE to spend $30 billion as Obama administration continues to fund GE: HERE
Obama seeks $53 billion to fund ‘secretly’ bailed out GE for high-speed rail: HERE
Bankrupt-Bailed-Out-Government-Owned-Tax-Free-Overseas-Job-Outsourcing GE Tells American Business Owners, ‘Stop Complaining About Big Government’: HERE
Big list of government bribes bailouts: HERE
Debt Deal? But compromise is what got us into this mess: HERE
AIG tale: HERE
Hat Tip: Winston, PK, Jim R, Geoff, Dennis, Ron T