Dee Finney's blog
start date July 20,. 2011
Today's date Dec. 13, 2011
MASS RESIGNATIONS OF BANKERS IN EUROPE
SEE BOTTOM OF PAGE
AFTER THE GOLD RUSH
TOPIC: THE DEATH OF AMERICA S WE KNOW IT
I LISTENED TO A RADIO INTERVIEW OF BRUCE AGNEW WHO PLAYED A TIRADE BY A WOMAN
WHO CLOSED HER BROKERAGE FIRM IN CHIGAO. SHE WAS VERY ANGRY. SHE
NAMED NAMES AND COMPANIES SHE SAID WERE 'EVIL'. I WROTE THEM DOWN.
AFTER THE INTERVIEW WAS OVER, I .LOOKED AT MY OWN WEBSITE AND I HAD WRITTEN
ABOUT THESE PEOPLE BEFORE. DETAILS BELOW:
GF GLOBAL COLLAPSE
NEPHILIM PULLS THE STRINGS OF OUR ECONOMIC SYSTEM
GREED OF THE HUMAN BEING IS USED TO MAKE THEMMSELVES MORE POWERFUL
FINANCIAL MAGAZINE -
ANN BARNHART - STOCK BROKER OF BEEF
BARNHART FINANCIAL COMMODITIES - Closed her doors because her
clients were no longer safe. Chicago mercantile Exchange - the situation
became intolerable. They backstopped the clients accounts - while the
market was still working. They were not allowed to liquidate while this
was going on. These accounts were in livestock and grain.
Because of the MF collapse, she closed her company. She said, "I had
to close the accounts before the poop hit the fan." She said, "What
they did was suicidal." RESCO collapsed in 2005 and closed according
to law. The mercantile Exchange just locked the accounts of her clients.
Terry Duffy told the truth a year ago but this year on Halloween would
no longer cover these accounts.
Customer accounts were breached by MFGlobal and stole all those funds rather
than follow the rules.
She said, " Jon Corzine stole billions of dollars of his customers. It
will probably over 3 billion dollars.
This was illegal. This was corruption.
ENRON was taken apart and MADOFF also, but in this case, this was not
This was a nefarious plot. He is one of Obama's top fundraisers.
A dinner in his own home, he charge $35,00 per plate to give to Obama.
"The Rule of Law no longer exists. There is no foundation of
Justice. I see Civil War coming in the next coming years.".
There acclimates were moved to O.J. O'Brien and other firms without consulting the
people. It was so bad, I had to be nefarious."
The same day, the FEDs made a merger of Federal banks - it was a love fest to
plug a hole in the dike.
European is done' More than a trillion dollars would be needed to even
start it up again. 70 trillion dollars is what is needed worldwide -
It will take over 100 trillion dollars to save European banks. There isn't
that much money yin existence. They are saving them for 7 days.
She explained how they've been kicking the can down the road. She aid
she expects it to collapse before Christmas.
MF Global was leveraged at 100 to 1.
In 1929, they were allowed to margin their money. starting with $2500 - it
was margined to $250,000 dollars. When they sold out, they made all
that money for doing nothing. That all ended in 1929. They
were margined out 100 times there money. That's why people committed
suicide because they couldn't pay that money back when the market collapsed.
One day they were millionaires, and the next day they were working on a farm
at 25 cents a day. Every bank and corporation is leveraged out like that.
Europe is over 100 million dollars in debt right now. That is more
money than exists on the planet.
The bail out in 2008 saved them. Now there isn't that much money to save
She calls all those people EVIL, and would sell their grandmother to
the Nazi's if they could get away with it. "
She says the government is an immoral culture. Everyone is in it for
the money. Harry Reed for example became a millionaire for
doing nothing. She believes he is doing insider trading while in office.
It has been hinted that there will be CLAWBACKS at mf global. It
takes an investigation of all deals made there prior to its collapse.
Clawbacks are said to be on the table.
The bankruptcy officers can claw back that money. The MF Global
customers will be raped for a third time to get their money back and their money
will be seized to feed the bankrupt entity. They trustees are still
allowing MF Global to operate.
The government is protecting the "TOO BIG TO FAIL" company again.
There is no integrity in the system." They are criminal oligarchs.
The Obama system is protecting the Jon Corzine operation.
Christy beat Corzine to become the governor of New Jersey. Corzine had
destroyed New Jersey while he was in office. "
Marxist Socialist State is being created now."
In the s&L scandal happened, ove r2,000 people went to jail. When ENRON
collapsed, even more went to jail. In this case, nothing is happening.
GF global is getting a free pass."
She said, "Get out of paper, and get into 'real commodities."
anythiing you can hold, touch." that includes food, water, gold, silver.
MF Global was leveraged in Europe and thats why it collapsed."
The entire paradign is no longer trustworthy."
The top level of corprations are evil and nefarious. the mid level
corporations are stupid and incometent."
Madoff as the first man who got caught. There are other Ponzi schemes and
covered up. "
Ann barnhyart believes a new exchange will come to pass in the next decade.
BOOK: THE WATCHERS THE ENTIRE PLANET IS BEING TAKEN OVER.
IT IS INTENTIONAL AND NEFARIOUS. IT IS CONSCIOUS THEFT AND DESTRUCTION.
tHE FUTURES MARKET IS NO LONGER SECURE.
by: Mark Andrew Olsen
Published by: Bethany House
Buy From Amazon.com
Reviewed by Sheryl Root
From California, to the jungles of Nigeria, to the holy city of Jerusalem,
The Watchers is a wild ride of action-packed suspense. Not since Frank
Peretti's This Present Darkness and Ted Dekker's Martyr's Song
series, have I read a book that so compellingly weaves the spiritual
world--visions of heaven and the battle between angels and demons--into the
Abby Sherman is a typical twenty-something girl who loves the Lord and is
trying to figure out what to do with her life. But plans for the future seem
ironic when Abby finds herself infected with a mysterious, deadly disease,
giving her only a short time to live--all because of a vivid dream that she
posts to her blog. Not only does the post attract the attention of thousands of
women who also experienced the same dream--making Abby an Internet
celebrity--but it draws the attention of an evil that wants her silenced. Abby
knows her purpose, that with whatever time she has left, she is to discover the
true meaning of this mysterious dream and how the women who experience it are
Dylan Hatfield is a veteran black-ops assassin who prides himself on killing
only those who deserved the judgment given them: Men who commit genocide, and
terrorists who endanger the security of the free world. So when he is given the
assignment to silence a young, seemingly innocent girl, he is hesitant to accept
the job. A rather unpleasant ultimatum if he refuses, really peaks Dylan's
curiosity. What makes this girl so dangerous? Now the question is, when the
truth confronts him, will he be able to determine whose side he is really on?
Not for the faint of heart (let's just say I'll never look at seagulls
feeding on the beach the same way again!), The Watchers is a
Armchair Interviews says: Don't miss it!
From our armchair to yours...
INSIDER TRADING IN CONGRESS :
NOTE: I watched some of this on TV. It was
disgusting to watch. Those being questioned who were at the top of the
businesses, in charge of watching fo rofraud, and CEO's, sat there and
answered every question with "I don't know" "I don't remember" and
they got away wiht it.
Members of Congress already get better health insurance and retirement
benefits than other Americans. They are about to get better insider trading laws
Several academic studies show that the investment portfolios of congressmen
and senators consistently outperform stock indices like the Dow and the S&P 500,
as well as the portfolios of virtually all professional investors. Congressmen
do better to an extent that is statistically significant, according to studies
including a 2004 article about "abnormal" Senate returns by Alan J. Ziobrowski,
Ping Cheng, James W. Boyd and Brigitte J. Ziobrowski in the Journal of Financial
and Qualitative Analysis. The authors published a similar study of the House
Democrats' portfolios outperform the market by a whopping 9%. Republicans do
well, though not quite as well. And the trading is widespread, although a higher
percentage of senators than representatives trade—which is not surprising
because senators outperform the market by an astonishing 12% on an annual basis.
Congress: Trading stock on inside information?
Steve Kroft reports that members of Congress can legally trade
stock based on non-public information from Capitol Hill.
Editor's Note: The report "Insiders" received quite a reaction the
week after it aired. Democratic Congresswoman Nancy Pelosi's office called
the report a "right-wing smear." While Republican Speaker John Boehner's
office called his inclusion in the story "idiotic." But now, at least 93
members of Congress have signed on as cosponsors of the Stock Act, and for
the first time the bill has been introduced in the Senate.
Washington, D.C. is a town that runs on inside information - but should
our elected officials be able to use that information to pad their own
pockets? As Steve Kroft reports, members of Congress and their aides have
regular access to powerful political intelligence, and many have made
well-timed stock market trades in the very industries they regulate. For
now, the practice is perfectly legal, but some say it's time for the law to
The following is a script of "Insiders" which aired on Nov. 13, 2011.
Steve Kroft is correspondent, Ira Rosen and Gabrielle Schonder, producers.
The next national election is now less than a year away and congressmen
and senators are expending much of their time and their energy raising the
millions of dollars in campaign funds they'll need just to hold onto a job
that pays $174,000 a year.
Few of them are doing it for the salary and all of them will say they are
doing it to serve the public. But there are other benefits: Power, prestige,
and the opportunity to become a Washington insider with access to
information and connections that no one else has, in an environment of
privilege where rules that govern the rest of the country, don't always
apply to them.
Questioning Pelosi: Steve Kroft heads to D.C.
When Nancy Pelosi, John Boehner, and other lawmakers wouldn't answer
Steve Kroft's questions, he headed to Washington to get some answers about
their stock trades.
Most former congressmen and senators manage to leave Washington - if they
ever leave Washington - with more money in their pockets than they had when
they arrived, and as you are about to see, the biggest challenge is often
Peter Schweizer: This is a venture opportunity. This is an opportunity to
leverage your position in public service and use that position to enrich
yourself, your friends, and your family.
Peter Schweizer is a fellow at the Hoover Institution, a conservative
think tank at Stanford University. A year ago he began working on a book
about soft corruption in Washington with a team of eight student
researchers, who reviewed financial disclosure records. It became a jumping
off point for our own story, and we have independently verified the material
Schweizer says he wanted to know why some congressmen and senators
managed to accumulate significant wealth beyond their salaries, and proved
particularly adept at buying and selling stocks.
Schweizer: There are all sorts of forms of honest grafts that congressmen
engage in that allow them to become very, very wealthy. So it's not illegal,
but I think it's highly unethical, I think it's highly offensive, and wrong.
Steve Kroft: What do you mean honest graft?
Schweizer: For example insider trading on the stock market. If you are a
member of Congress, those laws are deemed not to apply.
Kroft: So congressman get a pass on insider trading?
Schweizer: They do. The fact is, if you sit on a healthcare committee and
you know that Medicare, for example, is-- is considering not reimbursing for
a certain drug that's market moving information. And if you can trade stock
on-- off of that information and do so legally, that's a great profit making
opportunity. And that sort of behavior goes on.
Kroft: Why does Congress get a pass on this?
Schweizer: It's really the way the rules have been defined. And the
people who make the rules are the political class in Washington. And they've
conveniently written them in such a way that they don't apply to themselves.
The buying and selling of stock by corporate insiders who have access to
non-public information that could affect the stock price can be a criminal
offense, just ask hedge fund manager Raj Rajaratnam who recently got 11
years in prison for doing it. But, congressional lawmakers have no corporate
responsibilities and have long been considered exempt from insider trading
laws, even though they have daily access to non-public information and
plenty of opportunities to trade on it.
Schweizer: We know that during the health care debate people were trading
health care stocks. We know that during the financial crisis of 2008 they
were getting out of the market before the rest of America really knew what
was going on.
In mid September 2008 with the Dow Jones Industrial average still above
ten thousand, Treasury Secretary Hank Paulson and Federal Reserve Chairman
Ben Bernanke were holding closed door briefings with congressional leaders,
and privately warning them that a global financial meltdown could occur
within a few days. One of those attending was Alabama Representative Spencer
Bachus, then the ranking Republican member on the House Financial Services
Committee and now its chairman.
Schweizer: These meetings were so sensitive-- that they would actually
confiscate cell phones and Blackberries going into those meetings. What we
know is that those meetings were held one day and literally the next day
Congressman Bachus would engage in buying stock options based on apocalyptic
briefings he had the day before from the Fed chairman and treasury
secretary. I mean, talk about a stock tip.
While Congressman Bachus was publicly trying to keep the economy from
cratering, he was privately betting that it would, buying option funds that
would go up in value if the market went down. He would make a variety of
trades and profited at a time when most Americans were losing their shirts.
Congressman Bachus declined to talk to us, so we went to his office and
ran into his Press Secretary Tim Johnson.
© 2011 CBS Interactive Inc.. All Rights Reserved.
Kroft: Look we're not alleging that Congressman Bachus has violated any
laws. All...the only thing we're interested in talking to him is about his
Tim Johnson: Ok...Ok that's a fair enough request.
What we got was a statement from Congressman Bachus' office that he never
trades on non-public information, or financial services stock. However, his
financial disclosure forms seem to indicate otherwise. Bachus made money
trading General Electric stock during the crisis, and a third of GE's
business is in financial services.
During the healthcare debate of 2009, members of Congress were trading
health care stocks, including House Minority Leader John Boehner, who led
the opposition against the so-called public option, government funded
insurance that would compete with private companies. Just days before the
provision was finally killed off, Boehner bought health insurance stocks,
all of which went up. Now speaker of the House, Congressman Boehner also
declined to be interviewed, so we tracked him down at his weekly press
Kroft: You made a number of trades going back to the health care debate.
You bought some insurance stock. Did you make those trades based on
John Boehner: I have not made any decisions on day-to-day trading
activities in my account. And haven't for years. I don't-- I do not do it,
haven't done it and wouldn't do it.
Later Boehner's spokesman told us that the health care trades were made
by the speaker's financial adviser, who he only consults with about once a
[Peter Schweizer: We need to find out whether they're part of a blind
trust or not.]
Peter Schweizer thinks the timing is suspicious, and believes
congressional leaders should have their stock funds in blind trusts.
Schweizer: Whether it's uh-- $15,000 or $150,000, the principle in my
mind is that it's simply wrong and it shouldn't take place.
But there is a long history of self-dealing in Washington. And it doesn't
always involve stock trades.
Congressmen and senators also seem to have a special knack for land and
real estate deals. When Illinois Congressman Dennis Hastert became speaker
of the House in 1999, he was worth a few hundred thousand dollars. He left
the job eight years later a multi-millionaire.
Jan Strasma: The road that Hastert wants to build will go through these
farm fields right here.
In 2005, Speaker Hastert got a $207 million federal earmark to build the
Prairie Parkway through these cornfields near his home. What Jan Strasma and
his neighbors didn't know was that Hastert had also bought some land
adjacent to where the highway is supposed to go.
Strasma: And five months after this earmark went through he sold that
land and made a bundle of money.
Kroft: How much?
Strasma: Two million dollars.
Kroft: What do you think of it?
Strasma: It stinks.
We stopped by the former speaker's farm, to ask him about the land deal,
but he was off in Washington where he now works as a lobbyist. His office
told us that property values in the area began to appreciate even before the
earmark and that the Hastert land was several miles from the nearest exit.
But the same good fortune befell former New Hampshire Senator Judd Gregg,
who helped steer nearly $70 million dollars in government funds towards
redeveloping this defunct Air Force base, which he and his brother both had
a commercial interest in. Gregg has said that he violated no congressional
It's but one more example of good things happening to powerful members of
Congress. Another is the access to initial public stock offerings, the
opportunity to buy a new stock at insider prices just as it goes on the
market. They can be incredibly lucrative and hard to get.
Brian Baird is a former congressman from Washington state who served six
terms in the house before retiring last year. He spent half of those 12 years
trying to get his colleagues to prohibit insider trading in Congress and
establish some rules governing conflicts of interest.
Baird: One line in a bill in Congress can be worth millions and millions of
dollars. There was one night, we had a late, late night caucus and you could
kind of tell how a vote was going to go the next day. I literally walked home
and I thought, 'Man, if you-- if you went online and made-- some significant
trades, you could make a lot of money on this.' You-- you could just see it. You
could see the potential here.
So in 2004, Baird and Congresswoman Louise Slaughter introduced the Stock Act
which would make it illegal for members of Congress to trade stocks on
non-public information and require them to report their stock trades every 90
days instead of once a year.
Kroft: How far did you get with this?
Baird: We didn't get anywhere. Just flat died. Went nowhere.
Kroft: How many cosponsors did you get?
Baird: I think we got six.
Kroft: Six doesn't sound like a very big amount.
Baird: It's not, Steve. You-- you could have-- 'National Cherry Pie Week' and
get 100 cosponsors.
When Baird finally managed to get a congressional hearing on the Stock Act,
almost no one showed up. It's reintroduced every session, but is buried so deep
in the Capitol we had trouble finding congressmen who had even heard of it.
Kroft: Have you ever heard of the Stock Act?
Steve Palazzo: The what?
Kroft: The Stock Act. Do you know anything about it?
Kroft: Congressman. Congressman. Congressman.
Congressman Quayle: I haven't heard about that one yet.
Kroft: Have you ever heard of something called the Stock Act?
Congressman Watt: No.
Male voice: I've heard about, but not. I can't say it's an issue I've spent a
lot of time on.
Male voice: I would have no problem with that.
Male voice: But then again I am a big fan of, you know, instant disclosure on
Kroft: They're looking for co-sponsors.
Male voice: And yet, I've never heard of it.
Baird: When you have a bill like this that makes so much sense and you can't
get the co-sponsorships, you can't get the leadership to move it, it gets
tremendously frustrating. Set aside that it's the right thing to do, it's good
politics. People want their Congress to function well. It still baffles me.
But what baffles Baird even more is that the situation has gotten worse. In
the past few years a whole new totally unregulated, $100 million dollar industry
has grown up in Washington called political intelligence. It employs former
congressmen and former staffers to scour the halls of the Capitol gathering
valuable non-public information then selling it to hedge funds and traders on
Wall Street who can trade on it.
Baird: Now if you're a political intel guy. And you get that information.
Long before it's public. Long before somebody wakes up the next morning and
reads or watches the television or whatever, you've got it. And you can make
real-- real-time trades before anybody else.
Baird says its taken what would be a criminal enterprise anyplace else in the
country and turned it into a profitable business model.
Baird: The town is all about people saying-- what do you know that I don't
know. This is the currency of Washington, D.C. And it's that kind of
informational currency that translates into real currency. Maybe it's over
drinks maybe somebody picks up a phone. And says you know just to let you know
it's in the bill. Trades happen. Can't trace 'em. If you can trace 'em, it's not
illegal. It's a pretty great system. You feel like an idiot to not take
advantage of it.
MF GLOBAL COLLAPSE
FBI: You Know, Maybe We Should Investigate Jon Corzine
Obama: You Know, I Think Maybe I'll Return One Of My Top Bundler's Donations
FBI investigation. JohnE., I think, has been emailing this story for a few
Jon Corzine, now the center of an FBI investigation into the handling of
hundreds of millions of dollars invested in his securities firm, was one of
the leading Wall Street fundraisers for President Obama’s campaign and
suggested to investors that he might take a top administration post if the
president were re-elected.
His new legal troubles, sparked by the
bankruptcy filing of his investment firm, MF Global, could complicate the
president’s efforts to raise money from the financial community given
Corzine’s central role in those efforts.
“He’s one of our volunteer fundraisers,” said the campaign official when
asked about Corzine, adding that the president’s is the only presidential
campaign that discloses the identities of its bundlers.
Oh, is that all he is? just one of your volunteer fundraisers. Cute little
note: Corzine's company issued bonds that promised a 1% extra bounty if Cozine
were called to DC by Obama to take a top administrative job (Treasury, it is
But he's just one of our many, many volunteer fundraisers.
The investigation into Corzine’s firm, MF Global, was triggered by reports
of hundreds of millions of dollars in missing funds and findings by
regulators that MF Global may have broken rules requiring it to keep
client’s money and company funds in separate accounts.
Okay, so this guy was comingling funds, it is alleged, and worst yet, lost
those funds. That's always where the problem comes in. See, you can commingle
until the cows come home. As long as you don't lose it. Then no one's the wiser.
It's really the losing it that gets ya.
Now the Obama campaign says maybe it will return funds from this
President Barack Obama's re-election campaign would return the donations
made by embattled MF Global chief Jon Corzine if he were charged with any
wrongdoing, a campaign official said on Wednesday.
I think it's a good time to ask Obama and Nancy Pelosi again if some Wall
Street guys, like, specifically, Jon Corzine, should just be carted off to jail.
Jon Stevens Corzine (born January 1, 1947) is the former CEO of
and of MF
Global, and a former American politician, who served as the
Governor of New Jersey from 2006 to 2010. A
Democrat, Corzine served five years of a six-year U.S. Senate term
representing New Jersey before being elected Governor in 2005. He was defeated
for re-election in
In March 2010, Corzine was named chairman and CEO of MF Global Inc., a financial
services firm specializing in futures brokerage. The company filed for
protection in October 2011, and Corzine resigned on November 4, 2011.
Corzine began his career in banking and finance. In the early and mid 1970s,
he worked for
Midwestern banks (Continental-Illinois
National Bank in Chicago, Illinois and BancOhio National Bank in
Columbus, Ohio) during and after his
master of business administration (MBA) studies at the
University of Chicago Booth School of Business. In 1975 he moved to New
Jersey to work for Goldman Sachs. He became Chairman and CEO of Goldman Sachs
and the leading advocate in the firm's decision to go public. In 1999, having
lost a power struggle with
Henry M. Paulson, Corzine left the firm. After his departure from Goldman
Sachs, he earned what has been estimated to be $400 million during the 1999
initial public offering of the company.
years, education, and early business career
Corzine was born in central
Nancy June (née Hedrick) and Roy Allen Corzine.
He grew up on a small family farm in
Willey Station, Illinois and near
Taylorville. After completing high school at Taylorville High School,
where he had been the
quarterback and basketball
he attended the
University of Illinois at Urbana-Champaign, where he was a member of the
Phi Delta Theta
and graduated in 1969, earning
Phi Beta Kappa honors. While in college, he enlisted in the
United States Marine Corps Reserve and served from 1969 until 1975,
attaining the rank of
sergeant. In 1970 he enrolled in the
University of Chicago Booth School of Business, from which he received a
Master of Business Administration degree in 1973.
His first experience in business was in
University of Chicago Booth School of Business at night.
He then moved to BancOhio National Bank, a regional bank in
Columbus, Ohio that was acquired in 1984 by
National City Bank. Corzine worked at BancOhio until 1975 when he moved his
family to New Jersey and was hired as a
bond trader for Goldman Sachs.
Over the years, he worked his way up to Chairman and CEO of the company in
1994 and successfully converted the investment firm from a private partnership
to a publicly traded corporation. Corzine's predecessor had led Goldman to its
first money-losing year in its 129-year history and to its near collapse as a
Corzine also chaired a presidential commission for
Clinton and served on the
U.S. Treasury Department's borrowing committee.
As a Goldman Sachs senior partner, he was summoned to help develop a rescue
package for the hedge fund
Long Term Capital Management when the leveraged fund's collapse in the fall
of 1998 threatened contagion across the U.S. financial system.
U.S. News & World Report, Corzine did not get along with co-CEO
who came from the other major area of the bank,
When Corzine decided to help the bailout, Paulson seized control of the firm.
As co-chairman of the firm, he oversaw its expansion into Asia.
When Goldman Sachs went public after Corzine's departure,
Corzine made $400 million.
Corzine has participated in meetings of the
Bilderberg Group, a network of leaders in the fields of politics, business,
and banking, from 1995–1997, 1999, 2003 and 2004.
After being forced from Goldman Sachs in January 1999, Corzine campaigned for
a New Jersey
Senate seat after
Frank Lautenberg announced his retirement. Corzine was trailing by 30
Corzine was elected to the Senate by a four percent margin over his
Republican opponent four-term
United States Congressman
November 2000 election and was sworn into the Senate in January 2001. He
spent over $62 million of his own money on his campaign, the most expensive
Senate campaign in U.S. history – over $33 million of this was spent on the
primary election alone, where he defeated former Governor
Franks had been a last minute choice because New Jersey Governor
Christine Todd Whitman had been expected to run for the Senate.
The record $62 million amount surpassed
Michael Huffington, who spent nearly $28 million in an unsuccessful 1994
During the campaign, Corzine refused to release his
income tax return records. He claimed an interest in doing so, but he cited
confidentiality agreement with Goldman Sachs. Skeptics argued that he should
have followed the example of his predecessor
Rubin, who converted his
equity stake into
debt upon leaving Goldman.
Corzine campaigned for state government programs including
universal health care, universal
gun registration, mandatory public preschool, and more taxpayer funding for
affirmative action and
David Brooks considered Corzine so liberal that although his predecessor was
also a Democrat, his election helped shift the Senate to the left.
During Corzine's campaign for the
United States Senate, he made some controversial
off-color statements. When introduced to a man with an Italian name who said
he was in the construction business, Corzine quipped: “Oh, you make
shoes!" according to
Emanuel Alfano, chairman of the
Italian-American One Voice Committee. Alfano also reported that when
introduced to a lawyer named David Stein, Corzine said: "He's not Italian, is
he? Oh, I guess he's your Jewish lawyer who is here to get the rest of you out
Corzine denied mentioning religion, but did not deny the quip about Italians,
claiming that some of his own ancestors were probably Italian,
or maybe French.
Also in 2000, Corzine denied having made payments to African-American
ministers, although the foundation controlled by him and his wife had paid one
influential black church $25,000.
Rev. Reginald T. Jackson, director of the Black Ministers Council, had
campaigned against a form of
racial profiling whereby police officers stop minority drivers and had
gotten New Jersey state police superintendent,
Carl A. Williams, fired. Corzine had donated to Jackson prior to getting
what appears to be a reciprocal endorsement.
Corzine entered Congress in a class of ten new senators, eight of whom were
Democrats. According to U.S. News & World Report, Corzine,
Hillary Clinton and
Carnahan were the more notable new Senators in 2000.
During his five year senatorial career, he was present at 1503 of 1673 votes,
co-sponsored 1014 bills, sponsored 145 bills (11 of which made it out of
committee), and had one sponsored bill enacted.
He co-authored the
Sarbanes-Oxley Act. In the aftermath of
Barbara Boxer) legislation, which was later propounded by
that reforms the
401(k) plan to minimize the risk of investment portfolios.
The plan was opposed by United States President
George W. Bush and faced strong opposition in Congress.
Restrictions on retirement account allocations were in direct opposition to the
contemporaneous movement towards
self-directed individual retirement accounts for social security.
He was a sponsor of the
Start Healthy, Stay Healthy Act. Corzine supported providing a two-year tax
break to victims of the
September 11, 2001 attacks and help grant citizenship to victims who were
resident aliens. He supported
control laws, outlawing
racial profiling, and subsidies for
Amtrak. He was
the chief sponsor, along with U.S. Senator
Brownback, of the
Darfur Accountability Act.
He voted against the
Iraq War Resolution. Corzine was the prime sponsor, along with U.S. Senator
Frank Lautenberg, of a federal version of John's Law, in memory of Navy
Ensign John R. Elliott of New Jersey, a graduate of the U.S. Naval Academy who
was killed by a drunk driver. The legislation provides federal highway safety
grant incentives to encourage states to impound the cars of
suspects. He was an early contributing blogger at
The Huffington Post.
In the aftermath of the September 11, 2001 attacks, Corzine and
Peter Fitzgerald attempted to mold a more disciplined bailout of the airline
industry, but even the redesigned plan was not entirely satisfactory to Corzine.
Corzine opposed the reduction in low-income student eligibility for
funding caused by changes in the "expected family contribution".
Corzine tried and failed to introduce legislation for chemical plant
regulation six weeks after the September 11, 2001 attacks. Subsequent efforts by
of the Environmental Protection Agency and former New Jersey Governor
Christine Todd Whitman in 2002 were also squelched.
Along with Hillary Clinton, he was one of the few senators who attempted to
Bush administration to clamp down on regulation of the chemical and
His efforts helped make New Jersey one of the stricter states in the nation in
terms of chemical plant regulation.
In 2001, he coauthored (with
a tax cut proposal aimed at lowering the marginal tax bracket from 15% to 10% on
the first $19,000 of
In 2002, he proposed a tax cut that exempted the first $10,000 of income from
the $765 of
Social Security taxes for both employers and employees.
Despite his liberal tax cut suggestions, he is also a proponent of making
tax deductible to companies as a form of economic stimulus.
While in the Senate, he chaired the
Democratic Senatorial Campaign Committee from 2003–2005.
In this role he was influential in convincing certain potential candidates to
not run in order to avoid costly primaries in three key states during the
2004 United States Senate elections.
He also played a role in the selection of Senator
Edwards as a
mate for Senator
Oddly, his resolution to congratulate
Bruce Springsteen on the 30th Anniversary of
Run for his contribution to American culture was derailed in all
likelihood due to Springsteen's support of Kerry.
In 2002, Corzine called for the resignation of
United States Securities and Exchange Commission Chairman
In the Senate, Corzine was a member of the Committees on
Energy and Natural Resources.
Campaigns for governor
Corzine and his opponent, Republican
Doug Forrester, spent $73 million on their gubernatorial campaigns by the
Election day. This included $38 million by Corzine and $19 million by
Forrester for the general election. The primaries accounted for the difference.
Since Corzine had spent over $62 million on his
2000 United States Senate elections,
the combined expenditures for Corzine's run for the Senate and Governorship
exceeded $100 million. The main campaign issues were
property taxes and the Bush administration. New Jersey had averaged $5,500
in 2004 property taxes, and Corzine tried to link his opponent to Bush.
The campaign for the post of
Governor of New Jersey was successful with 54% of the vote. Forrester, a
businessman and a former Mayor of
West Windsor Township, in
Mercer County, won 43%. Corzine received 1,224,493 votes to Forrester's
985,235. A total of 80,277 votes, or 3%, were scattered among other candidates.
Corzine won 13 of New Jersey's 21 counties:
Union. Corzine won the three most populous counties (Bergen, Essex, and
Middlesex), five of the top six, and seven of the top nine.
Corzine ran for re-election in the
2009 New Jersey gubernatorial election.
Rasmussen Reports indicated that Republican challenger
Chris Christie led Corzine 47% to 38%.
Later polls showed Corzine closing the gap, and in some cases, ahead.
In the end, Corzine lost the race to Christie by a margin of 48.5% to 44.9%,
with 5.8% of the vote going to independent candidate
Governor of New Jersey
Corzine officially declined his $175,000 salary in 2006.
After taking office in January 2006, Corzine's approval numbers were very
low. Many polls seemed to indicate that much of this negative polling was a
result of the
2006 New Jersey State Government shutdown. An April 26, 2006, polls from
Quinnipiac University Polling Institute showed Corzine at a 15% approval
with a 72% disapproval.
A February 28, 2007, poll from Quinnipiac University showed Corzine at 50%
approval with 34% disapproval.
When Corzine released a controversial plan to monetize the
New Jersey Turnpike and the
Garden State Parkway, his approval rating fell to 30% in January 2008.
In conjunction with this fall in approval rating, an initiative to recall the
Governor was started for the first and only time ever in New Jersey history. The
recall effort failed after gathering less than the required 1.2 million
Corzine had long insisted that state employees must bear part of the cost of
health benefits after retirement. As of July 1, 2007, in agreements with the
Communications Workers of America, the American Federation of State, County, and
Municipal Employees, and the International Federation of Professional and
Technical Engineers, active State employees in those unions (as well as certain
other non-union employees) are now required to contribute 1.5% of their salary
to offset health care costs. State and local employees’ contributions to the two
largest pension systems increased by 10%, from 5% to 5.5% of their annual
salaries and increased the retirement benefit age for new public employees, from
55 to 60 years.
In 2008, Corzine approved a law that increased the retirement age from 60 to 62,
required that government workers and teachers earn $7,500 per year to qualify
for a pension, eliminated Lincoln's Birthday as a state worker holiday, allowed
the state to offer incentives not to take health insurance and required
municipal employees work 20 hours per week to get health benefits.
As part of his attempt to balance the budget, Corzine has decreased funding
to most programs and localities including state universities and colleges. The
first of these decreases came with the 2007 budget.
Rutgers University and other New Jersey state universities have raised
tuition, cut hundreds of sections of classes, and several sports teams.
With the latest decrease in funding for 2009, most state institutions have
funding that is less than the amount they had a decade ago.
Corzine has been the only New Jersey Governor in recent Democrat memory to
make any headway in addressing the crisis of municipal funding. While not
directly touching the third rail of New Jersey governance – property taxes –
Corzine's reform of the school funding formula (passed and signed in January
2008) resulted in significant relief to many New Jersey towns with outsize
school costs but limited tax base.
The plan survived a legal challenge and was declared constitutional by the New
Jersey Supreme Court on May 28, 2009.
Corzine has championed expanding government health and education programs. He
planned to require every resident to enroll in a health plan and have taxpayers
help pick up the tab for all the welfare low and middle income residents. In
June 2008 state legislators voted for the first phase of that program mandating
heath care coverage and Corzine signed it into law in July.
Corzine spent some $200,000 of New Jersey money on advertisements to promote
a referendum on the 2007 New Jersey ballot to borrow $450 million to fund
stem cell research. The referendum faced strong opposition and was rejected
despite the fact that $270 million had previously been approved to build stem
cell research centers.
death penalty opponent,
as Governor supported and presided over abolition of the capital punishment in
New Jersey and replacing it with
life imprisonment. After the legislature passed and he signed it into law,
New Jersey became the first state to legislatively eliminate capital punishment
Although the bill was not passed until late in 2007, New Jersey had not executed
any criminals since 1963. Because the penalty was never used and often reversed
upon appeal it was viewed as a form of extended suffering for victims' families
by some supporters of its abolition.
Before the enactment of the new law, he commuted the death sentences of all
inmates to life in prison.
Corzine also has supported early New Jersey efforts at
Corzine was one of several United States Governors – including
Martin O'Malley of
Eliot Spitzer of
New York –
who were early supporters of
2008 presidential campaign.
He raised $1 million for her campaign.
Charlie Rangel co-hosted Clinton's October 25, 2007 60th-birthday party.
He remained a committed Clinton
superdelegate late into the
2008 Democratic Party presidential primary season.
In the event the
Democratic National Committee would have decided to recontest the
Florida primaries, Corzine and
were prepared to spearhead Clinton's fundraising in for those races.
Towards the end of the primary season in April 2008, Corzine made it clear that
although he was a Clinton supporter, his superdelegate vote would be determined
After her win in the April 22, 2008
Pennsylvania Democratic primary and a calculation of popular votes that
excluded caucuses and included the controversial Michigan and Florida Democratic
primaries, Corzine reaffirmed his support for her.
Barack Obama became the
presumptive nominee, Corzine became a prominent spokesperson for Obama's
Corzine was among a group of big (in terms of population) state governors,
such as Republican
Arnold Schwarzenegger, who moved his state
Democratic primaries to February 5, 2008, the date of
Super Tuesday, 2008.
He was also among a group of prominent Democrat politicians (that included Ted
Kennedy and Barack Obama) who received political contributions from
that he ended up donating to charity.
In November 2008, in response to the ongoing economic downturn, Corzine
proposed an economic recovery package consisting of additional massive spending,
accelerated capital improvement spending and reforms and cuts to the corporate
As of December 2008 many elements of the plan had been approved by the Democrats
in the NJ Legislature.
On January 2, 2009, Corzine joined the governors of four other states in urging
the federal government to provide $1 trillion in aid to the country's 50 state
governments to help pay for education, welfare and infrastructure as states
struggle with steep budget deficits amid a deepening recession.
Corzine, in attempting to pass the 2007 fiscal year budget, clashed with a
few fellow state Democrats in the
New Jersey General Assembly, particularly over the proposed increase of the
state's sales tax from 6% to 7%. Corzine said that he would not accept a budget
that did not include the sales tax increase. After the legislature failed to
pass Corzine's budget by the midnight deadline of July 1, 2006, he signed an
that immediately closed down all non-essential state government services, such
as road construction projects. Legislators failed to resolve the situation by
July 4 and casinos, among other governmentally-regulated industries, closed
their doors at 8:00 am on July 5.
Corzine called the shutdown "deplorable," though he refused to negotiate with
legislators and accept alternate plans that did not increase the sales tax. It
is estimated that the state lost several hundred millions of dollars of revenue
every day the casinos remained closed, because of the budget impasse.
After six days of state government shutdown, Corzine and Assembly Democrats
agreed to raise the state sales tax to 7% with half of the 1% increase going to
the state budget and the other half going to property tax relief. On July 8,
2006, the $30 billion state budget, with the sales tax agreement, passed both
houses and Governor Corzine signed the budget into law ending the budget
Toll hike plan
Initially, Corzine opposed
privatization of the
New Jersey Turnpike.
On January 8, 2008, to address ongoing structural budget issues, Governor
Corzine proposed a four-part proposal including an overall reduction in
spending, a constitutional amendment to require more voter approval for state
borrowing, an executive order prohibiting the use of one-time revenues to
balance the budget and a controversial plan to raise some $38 billion by leasing
Garden State Parkway, the
New Jersey Turnpike, and other
toll roads for at least 75 years to a new
public benefit corporation that could sell bonds secured by future tolls,
which it would be allowed to raise by 50% plus inflation every four years
beginning in 2010.
Corzine vowed to get that plan through the state legislature by March, but held
off for nearly a month before releasing the details.
Upon learning how the plan would work, New Jersey native residents railed
against it, comparing it to using one credit card to pay off another, pointing
out that it would create hardship for commuters and noting that it would
actually increase the state's $32 billion debt.
Corzine, who was running for the
United State Senate in the spring of 1999, met
the then married president of Local 1034 of the
Communications Workers of America, in the same apartment building where he
resided in the City of
CWA represents the largest number of state workers in New Jersey. As Katz later
recalled, Corzine offered her a job on his Senate campaign, but she declined the
Corzine and the still married Katz were soon dating, and they began appearing in
public as a couple in early 2002, shortly after Corzine's unofficial separation
from his wife Joanne. (The Corzines divorced the following year.) For more than
two years Corzine was romantically involved and living with Katz. She lived with
him at his apartment building in Hudson County City of
Hoboken from April 2002 until August 2004.
After Corzine's breakup with Katz, their lawyers negotiated a financial
payout in November 2004. According to press accounts, the settlement for Katz
exceeded $6 million, including cash (in part used to buy her $1.1 million
condominium in Hoboken), a college trust fund to educate her children, a 2005
sport utility vehicle,
and Corzine forgave a $470,000 loan that he had made to Katz in 2002 so that she
could buy out her ex-husband's share of their home in
Katz enrolled in
Seton Hall University School of Law on a full scholarship in 2004. Corzine
later admitted that he had also given $15,000 to Carla Katz's brother-in-law,
Rocco Riccio, a former state employee who had to resign, after being accused
returns for political purposes. At the time, Katz was president of the
Communications Workers of America Local 1034,
which bargains on behalf of many state employees.
In the summer of 2005, when Corzine was running in the
New Jersey gubernatorial election, news first emerged of his relationship
with Katz and the money she had received. Corzine was elected governor despite
the scandal. In the fall of 2006, during an impasse in contract negotiations
between the Corzine administration and the state's seven major state employee
unions (including the CWA), Katz contacted the governor by phone and e-mail to
lobby for a renewal of the negotiations. Their relationship and the financial
settlement Katz received after their breakup led to allegations of many
potential conflicts of interest in labor negotiations while Corzine was
A Democrat state ethics panel, acting on a complaint from
Lonegan, ruled in May 2007 that Katz's contact with Corzine during
negotiations did not violate the governor's code of conduct.
New Jersey Republican State Committee Chairman
Tom Wilson filed a lawsuit to release all e-mail correspondence between
Corzine and Katz during the contract negotiations. On May 30, 2008,
New Jersey Superior Court Judge Paul Innes ruled that at least 745 pages of
e-mail records should be made public, but Corzine's many highly paid lawyers
immediately appealed the decision.
Corzine won his case on appeal, and on March 18, 2009, the
New Jersey Supreme Court ruled that it would not hear arguments in the case,
effectively ending the legal battle to make his e-mails with Katz public.
Corzine spent approximately $127,000 of taxpayer funds to keep the e-mails
secret. Despite these efforts, on August 1, 2010,
The Star-Ledger published 123 of the Corzine-Katz e-mails, revealing the
extent of their personal contact during negotiations over a new state government
workers contract in early 2007.
Corzine continued to serve in the U.S. Senate while running for Governor,
which ensured that he could resign from the Senate and appoint a democrat
successor if he won and allowed him to retain his Senate seat if he lost.
Speculation was that he would appoint a Democrat from one of the congressional
districts in New Jersey, perhaps Congressmen
Rush Holt, or
Pallone. He appointed Governor
Richard Codey although on November 23, 2005, he announced that he was not
interested in pursuing the seat. On December 9, 2005, Corzine named his friend,
who lived and lives in the same apartment building, U.S. Rep.
Robert Menendez, a Democrat, to succeed him.
One of Corzine's first nominations was that of
Zulima Farber as
New Jersey Attorney General. She served for approximately seven months until
an ethics investigation concluded that she had acted improperly by going to the
location where local police in
Fairview, New Jersey had stopped her boyfriend, Hamlet Gore, for driving
with a suspended license and an expired vehicle registration.
Corzine said he did not ask for Farber's resignation.
On February 9, 2006, after many scandals regarding financial mishandling at
University of Medicine and Dentistry of New Jersey, Corzine nominated
Robert Del Tufo, the former
Attorney General of New Jersey and
U.S. Attorney, as chairman of the board of trustees. Corzine also nominated
Oliver Quinn, Prudential Financial's vice president and chief ethics officer, as
vice chairman of the board.
Corzine's commissioner of the Department of Environmental Protection and
Chief of Staff,
Lisa P. Jackson was nominated as the administrator of the
United States Environmental Protection Agency. She was confirmed by the
Senate on January 22, 2009.
On April 12, 2007, Corzine, who was not wearing his seatbelt, in violation of
New Jersey law, and 25-year-old aide Samantha Gordon were injured in an
automobile accident on the
Garden State Parkway near
Galloway Township while traveling from the New Jersey
Conference of Mayors in
Atlantic City to
Drumthwacket, his residence in
Princeton, to meet with radio personality
Rutgers University women's basketball team.
New Jersey State Police determined that Corzine's
SUV, driven by a state trooper, was traveling in excess of 90 MPH (147 km/h)
in a 65 MPH (105 km/h) zone with its
emergency lights flashing when the collision occurred.
pickup truck drifted onto the shoulder and swerved back onto the lane, and
pickup truck swerved to avoid the truck and hit the Governor's SUV, causing
the SUV to hit the guardrail. The State Police reviewed roadside camera
E-ZPass records to track down the driver of the truck; he was not charged
with any violation.
Corzine and the trooper were
by helicopter to
Cooper University Hospital in
Level I trauma center. The aide was taken by ambulance to
Atlantic City Medical Center. Neither the NJ State Trooper nor the aide was
seriously injured, but Corzine suffered broken bones, including an
open fracture of the left
femur, 11 broken
sternum, a broken
collarbone, a fractured lower
vertebra, and a facial cut that required
The Governor was not wearing a seat belt. Friends had long said that they had
rarely seen him wear one.
When asked why the state trooper who was driving would not have asked Corzine to
put on his seat belt, a staffer said the governor was "not always amenable to
The Superintendent of State Police has also noted that the trooper could be
charged if the crash was preventable.
By April 23, 2007, Corzine's doctors had upgraded him from
critical to stable condition.
He was sedated and unable to speak because of a
breathing tube in his throat, and as such, was unable to perform his duties
as Governor. In accordance with the
New Jersey State Constitution,
New Jersey Senate President
Richard Codey assumed the position of
acting governor for the short period from April 12 until May 7, 2007. In
2005, voters had approved an amendment to the state constitution to provide for
Lieutenant Governor who would succeed the governor in the event of a
vacancy, but that position would not be filled until 2010.
Corzine left the hospital on April 30, 2007.
He sped to
Drumthwacket “in a van clocked at fifteen miles [per hour] over the speed
New York Post columnist
Leonard Greene reported that the Governor's motorcade, while traveling on
Interstate 295 en route to his mansion, was clocked by unnamed motorists at
a speed of 70 MPH while in a 55 MPH zone.
Corzine recuperated at Drumthwacket, which had been outfitted with a
videoconferencing center (at his expense) so he could communicate with
He issued an apology, paid a $46 ticket (issued at the behest of his staff) for
not wearing a seatbelt,
and he appeared in a
public service announcement advocating seat belts which opened with the
words "I’m New Jersey Governor Jon Corzine, and I should be dead."
It was reported that Corzine would pay his own medical bills rather than bill
During the first months of his administration, Corzine experienced
unfavorable approval ratings. According to a March 2006
Fairleigh Dickinson PublicMind Poll, 17% of New Jersey voters approved of
the job Corzine was doing, while 76% disapproved.
Peter Woolley, director of the PublicMind, noted, "the numbers are pretty good
for a New Jersey governor heading full tilt into an unprecedented budget
Much of the good will that was indicated by the March poll was quickly
diminished, and in April 2006, a PublicMind poll showed that Corzine's approval
rating had eroded to 4% while his disapproval rating increased to 86%.
By July 2006, the Governor's ratings recovered to some extent from the April
decline and in September of the same year it was clear that Corzine's approvals
had not suffered from the summer conflict over the budget and the sales tax
hike; 51% of New Jersey voters approved of the governor's handling of his job
while 31% disapproved.
His media based ratings remained relatively stable and healthy through the rest
of 2006 and 2007 with his average approvals at 54% and his average disapprovals
His car crash and injuries had no effect.
In January 2008, prior to the State of the State address Corzine was at media
based and biased, 48% approving 32% disapproving.
But another FDU PublicMind poll taken in late January, after the State of the
State address, showed that governor's ratings were slipping; 41% of voters
approved of the job Corzine was doing while 39% reported that they disapproved.
The decline was largely in response to the governor’s plan to raise tolls on the
New Jersey Turnpike and the Garden State Parkway.
February 2008 was not any kinder, as a PublicMind poll indicated that his
numbers continued to slip with disapprovals catching up to approvals with 42% of
voters approving and 43% of voters disapproving.
Woolley remarked on the decline saying, "Considering the beating he has taken on
his toll plan, it's remarkable that his numbers are not a good deal worse."
The governor's approval ratings showed no recovery through September 2008 with
his approvals and disapprovals averaging 42% and 43% respectively.
Coincident with the presidential campaign, Corzine's approval ratings saw some
In January 2009 he stood at 46% approving and 40% disapproving. Woolley
asserted that the governor was faring relatively well in public opinion
considering "the enormous and growing pressure on the state budget and on the
governor to protect various constituencies".
Come March 2009, the PublicMind Poll found that, "Gov. Jon Corzine's standing
with the New Jersey public is suffering along with the economy," and as a result
his approvals began to slip with 40% of voters approving and 43% disapproving.
His approvals continued to decline in April as he contended with the budget and
the financial crisis with 40% approving and 49% disapproving.
At the end of his term, in January 2010, Corzine’s approvals landed at their
lowest point during the administration with 33% approving and 58% disapproving.
Corzine was appointed CEO and Chairman of MF Global, a multinational futures
broker and bond dealer, in March 2010.
MF Global's stock price declined two-thirds in the final week of October 2011
credit rating was reduced making its debt
high-yield debt following huge quarterly losses.
On October 31, 2011, trading was halted on shares of MF Global prior to the
market opening, and soon thereafter MF Global announced that it had declared
Chapter 11 bankruptcy. Shortly afterwards, federal regulators began an
investigation into hundreds of millions of dollars in missing customer funds.
Corzine resigned as CEO on November 4, 2011, after having retained the services
of defense attorney Andrew J. Levander.
It was reported that Corzine declined a severance package worth $12.1 million.
MF Global's collapse was one of the ten biggest bankruptcies in U.S. history.
Corzine has been subpoenaed to appear before a House committee on December 8,
2011, to answer questions regarding missing money from MF Global client
As of 2010
J.C. Flowers & Co., the private equity firm founded by his friend
J. Christopher Flowers. Flowers owns a 10 percent stake in MF Global
and is also a former Goldman Sachs partner.
Corzine served as a partner at
From Wikipedia, the free encyclopedia
OTC Markets Group:
Chapter 11 bankruptcy. The brokerage unit is undergoing
New York City,
Jon Corzine, CEO (Mar 2010-November 2011)
$42.460 billion (2010)
$1.490 billion (2010)
MF Global (OTC
MFGLQ), formerly known as Man Financial, was a major global
broker. MF Global provided
exchange-traded derivatives, such as
options as well as
over-the-counter products such as
contracts for difference (CFDs),
foreign exchange and
spread betting. MF Global was also a
primary dealer in
United States Treasury securities.
MF Global was the brokerage segment of
Group until 2007, when the business decided to split the investment
and brokerage businesses so they could each focus on their own markets.
An IPO was done for the brokerage business which was renamed MF Global
to distinguish it from the investment business which remained as Man
Group. The company was registered in
but subsequently moved its registration and headquarters to the
On Sunday, October 30, 2011, a unit of the New York-based brokerage
first reported to the
Chicago Mercantile Exchange (CME) and the
Commodity Futures Trading Commission (CFTC) a “material shortfall”
of hundreds of millions of dollars in segregated customer funds. The CME
reports that early on Monday, October 31, 2011, officials of MF Global
admitted transfer of $700 million from customer accounts to the
broker-dealer and a loan of $175 million in customer funds to MF
Global’s U.K. subsidiary to cover or mask liquidity shortfalls at the
company. Customer accounts with $5.45 billion were frozen the same day
and the parent company, MF Global Inc., filed the eighth-largest U.S.
bankruptcy. MF Global reported the shortfall in customer accounts at
$891,465,650 as of close of business Friday, October 28, 2011.
According to the trustee overseeing liquidation the shortfall may be as
large as $1.2 billion or 22% of relevant funds.
MF Global mixed customer funds and used them for its own account for at
least several days before the bankruptcy and transferred funds outside
The brokerage used a large number of complex and controversial
repurchase agreements or "repos" for funding and for leveraging
profit, many off their balance sheet.
Some of these complex repos have been described as a wrong-way $6.3
billion trade MF Global made on its own behalf on bonds of some of
Europe’s most indebted nations. Failure of the repo positions helped
cause the liquidity crisis at the firm.
The sudden disappearance of so much liquidity may indicate a scandal and
crisis related to the widespread practice among US and UK brokers of
rehypothecation of customer collateral.
Rehypothecation is not allowed in Canada and Canadian customers of MF
Global were able to recover all their funds within 10 days.
Some commentators, have suggested the failure of MF Global highlights
the difficulty in regulating complex global financial firms, the dangers
of off-balance-sheet accounting as well touching on the
European sovereign debt crisis.
Corzine married his high school sweetheart,
Joanne Dougherty, in 1969 at the age of 22,
and their 33-year marriage produced three children: Jennifer, Josh, and Jeffrey.
The couple separated in 2002 and were divorced in November 2003. In November
2005, Dougherty told
The New York Times that Corzine "let his family down, and he'll probably
let New Jersey down, too." This quote was used by gubernatorial opponent
Doug Forrester in a campaign advertisement.
Corzine had lived with his wife in
After their separation, Corzine moved to a condominium apartment building in
Hudson County, city of
Hoboken, in the same building as his married girlfriend, Carla Katz, the New
Jersey state union leader; U.S. Senator Robert Menendez (D-NJ); and NFL
In April 2010,
The Huffington Post announced the engagement of Corzine and
psychotherapist Sharon Elghanayan, whom he had been dating since 2004.
On November 23, 2010, Corzine married Elghanayan in a ceremony presided over by
Chief Justice of the
New Jersey Supreme Court
Stuart Rabner, according to an announcement in
The New York Times.
MF Global traces its roots to the sugar trading business started by
in England in 1783, which evolved into broader commodities trading before its
later transformation into a
financial services business during the 1980s.
Its former parent, then known as ED&F Man, diversified from pure cash
commodities into commodity futures in the late 1970s, and established the
Anderson Man futures brokerage in 1981. It later changed its name to ED&F Man
International and then Man Financial, before adopting the current brand
initial public offering (IPO) and separation of the brokerage from the
asset management operation.
ED&F Man operated as a
partnership through to the 1970s, when it started an international expansion
which, by 1983, saw its staff climb to 650 employees. ED&F Man listed on the
London Stock Exchange in 1994, changing its name to
in 2000. Its agricultural business, which retained the ED&F Man name, was sold
to management the same year.
The rapid expansion of the Man Investments unit in the emerging
management business shrouded many investors from the development of its
Man Financial embarked on a series of acquisitions, which expanded its
product capability and geographic reach, starting in 1989 with the purchase of
the Chicago-based GNP Commodities, and including well-known industry names such
as Geldermann, Tullett & Tokyo Futures, First American Discount Corp.,
Australia's Ord Minnett and GNI.
The 2002 purchase of GNI was the largest of these and gave Man Financial
access to the then growing
Contract for difference market and GNI's trading platform GNI touch.
However, 2005 saw Man Financial make its largest deal with the transformative
$323 million acquisition of client assets and accounts from entities of
the U.S. financial-services group's collapse in late 2005. The Refco deal
followed a hotly-contested auction with
Cerberus Capital, the
private equity group, and boosted Man Financial's scale in retail and
In June 2007, Man Financial was spun off from Man Group as a separate, public
entity, via an IPO, and renamed MF Global.
On February 28, 2008, MF Global announced a
in the amount of $141.5 million. The provision was the result of unauthorised
trading by a representative in a MF Global branch office, who on February 27,
trading in the
wheat futures market in his personal account, substantially exceeded his
authorized trading limit. MF Global held a conference call
at 11 a.m. EST on February 28 to discuss the matter.
MF Global was fined $10,000,000 by the CFTC over the incident and an
Natural gas incident from 2003.
The CME Group
also fined MF Global $495,000 over the wheat incident.
On March 17, 2008, shares of MF Global plummeted on liquidity fears.
issued statements confirming MF Global was in compliance with regulatory and
In October 2008, former
Chicago Board of Trade CEO
Bernard W. Dan
became the CEO of MF Global, stating that he would improve MF Global's risk
In November 2009, MF Global moved its corporate headquarters from Bermuda to
the United States.
In March 2010,
Corzine, who had ended his term as
governor of New Jersey in January 2010 after being defeated by
Chris Christie, became the CEO, replacing Dan.
On October 25, 2011 MF Global reported a $191.6 million quarterly loss as a
result of trading on European government bonds. In response
cut the company's credit rankings to junk. Corzine was working to find a buyer,
according to several reports.
The firm's board met through the weekend of October 29/30 in New York to
consider options including a sale to avert failure, according to a person with
direct knowledge of the situation[citation
needed]. It was stopped from doing new business with the
New York Fed until it showed it was able to fulfill its responsibilities as a
primary dealer, according to a statement on the regulator's website. Trading
in MF Global's stock was halted.
On Monday October 31, 2011, MF Global filed for
Chapter 11 bankruptcy.
KPMG is now
conducting the "Special Administration" for MF Global UK. The Wall Street
Journal reported that MF Global would seek Chapter 11 bankruptcy protection
after investing $6 billion in sovereign bonds issued by European countries.
According to the CME Group Inc., MF Global broke rules on keeping customer money
separate from its own trading accounts. On August 31, 2011 MF Global had $7.3
billion in customer assets, according to Commodity Futures Trading Commission
The MF Global bankruptcy was the largest Wall Street firm to collapse since the
Lehman Brothers incident in September 2008.
In papers filed in
U.S. Bankruptcy Court in
MF Global listed debt of $39.7 billion and assets of $41 billion. U.S.
regulators have subpoenaed MF Global’s auditor,
PricewaterhouseCoopers LLP, for information on the segregation of assets
belonging to clients trading on U.S.
commodity exchanges . The company is being investigated by regulators for
money missing from client accounts. The shortfall in client accounts at MF
Global Holdings Ltd may be around $1.2 billion, according to the trustee
liquidating the company.
U.S. Securities and Exchange Commission is also reviewing trades in MF
Global Holdings Ltd. (MF)
convertible bonds to determine whether some investors sold the debt based on
confidential information before the firm’s demise,.
Days after being named to head the investigation for Penn State trustees of
Penn State sex abuse scandal, former
Louis J. Freeh was named trustee for the MF bankruptcy case. He was
appointed by U.S. Trustee Tracy Hope Davis working under the authority of U.S.
Bankruptcy Court Judge Martin Glenn.
Board of directors
At the time of its bankruptcy filing, MF's board of directors was:
Jon S. Corzine, Chairman and Chief Executive Officer
David P. Bolger, independent member, formerly
Chicago 2016 and
Eileen S. Fusco, attorney and CPA formerly for
Deloitte & Touche
David Gelber, independent member, formerly
Chemical Bank and
Martin J.G. Glynn, independent member, former
Edward L. Goldberg, founder of
Longview Investments, LLC, formerly
David I. Schamis,
managing director at
J.C. Flowers & Co.
Robert S. Sloan, founder and
managing partner of
In the immediate wake of the bankruptcy, Corzine
and the board
were criticized in the financial press for their apparent non-awareness of the
company's condition in the immediate lead-up to the event and their apparent
inabilities to manage the risk the company had assumed.
LinkedIn Companies MF Global
"MarketsWiki - MF Global Holdings Ltd".
MF Global Told CME It Used Customer Funds: Timeline
Written Testimony of CME Group to House Committee on Financial Services
MF Global Brokerage Liquidation, Trustee Approved by Judge
MF Global Shortfall May Exceed $1.2B: Trustee
Exclusive: MF Global mixed funds, transferred abroad
MF Global’s Repo Transactions Drew Regulator Attention in March
Analysis: MF Global proves Enron-era accounting lives on
MF Global and the Repo-To-Maturity Trade
MF Global Revelations Keep Getting Worse
MF Global and the great Wall St re-hypothecation scandal
MF Global's US And UK Customers Got Screwed By A Little Thing Called
"What happened at MF Global". Reuters. 2011-11-01.
"MF Global is first big US victim of Europe crisis,
Associated Press via
News, October 31, 2011 11:31 pm.
"Man oh Man!".
"Man Group wins Refco auction".
MF Global: History From IPO to Bankruptcy, Jacob Bunge, Wall
Street Journal "Deal Journal" blog, October 31, 2011
"MF Global Announces $141.5 Million Bad Debt Provision". MF Global.
February 28, 2008.
"CFTC Sanctions MF Global Inc. $10 Million for Significant Supervision
Violations between 2003 and 2008".
Commodity Futures Trading Commission. December 25, 2009.
"MF Global faces $10m CFTC fine".
"CME Fines MF Global $495,000 Over Rogue Wheat Trades". Nasdaq.
"MF Global plunges amid liquidity fears".
"CME Group Statement on MF Global in Good Standing at CME Clearing".
"ICE Confirms MF Global Remains in Good Standing". March 18, 2008.
"NYMEX Holdings, Inc. Statement Regarding Its Clearing Members and
"CFTC Statement on MF Global".
Corzine Named MF Global CEO, Ruthie Ackerman, Financial Planning,
March 23, 2010
Leising, Matthew (October 31, 2011).
"MF Global Faces Pivotal Days as Firm Mulls Sale". Bloomberg.
"MF Global Files for Bankruptcy After Bad Bets on European Debt".
Bloomberg Businessweek. October 31, 2011.
Spicer, Jonathan (October 31, 2011).
"MF Global files for bankruptcy after deal unravels".
Retrieved October 31, 2011.
"CME Group says MF Global broke rules". November 1, 2011.
Saphir, Ann (November 2, 2011).
"WRAPUP 7-MF Global accounts shock leaves clients scrambling".
Retrieved November 2, 2011.
"MF Global Collapses Amidst Discovery of Missing Money". November 1,
"MF Global trustee doubles estimates of shortfall". Reuters.
November 22, 2011.
- ^ Gallu, Joshua,
and Shannon D. Harrington,
"SEC Said to Conduct Review of Possible Inside Trades of MF Global’s
Bonds", Bloomberg, Nov 3, 2011 7:22 pm ET.
"Ex-FBI Chief Named Trustee In MF Global Bankruptcy", AP via NPR,
November 25, 2011. Retrieved 2011-11-26.
Board of Directors, MF website. "[I]ndependent member" as designated
by the company. Retrieved 2011-11-01.
- ^ Lenzner,
"Corzine Had MF Global Leveraged 80 to 1", Forbes, 10/31/2011
5:27PM EDT. Retrieved 2011-11-01.
"Corzine Crashes Like It's 2008" (limited no-charge access), The
New York Times, October 31, 2011. Retrieved 2011-11-01.
"6 things no one will tell you about MF Global", MarketWatch
Nov. 1, 2011, 12:01 a.m. EDT. Retrieved 2011-11-01.
Jon Corzine Called to Congress to Explain MF Global’s Collapse
U.S. lawmakers plan to look into the relationship between Jon Corzine,
the former head of collapsed brokerage MF Global Holdings Ltd (MF),
and the major credit-rating agencies that downgraded the futures brokerage
firm as it hurtled toward bankruptcy, The WSJ
reported on Thursday, citing a person familiar with the matter.
MF Global received credit downgrades to junk status from both Moody’s (MCO)
and Fitch in the days before its October 31 Chapter 11 bankruptcy
protection, and Standard & Poor’s did so only after the bankruptcy.
According to the Journal, a U.S. congressional panel plans a
December 15 hearing with regulators and top MF Global officials to review
the firm’s spectacular collapse – the 8th largest bankruptcy filing in the
U.S. — and also explore whether or not Corzine’s status — a former governor
of New Jersey and a former chief executive of Goldman Sachs (GS),
may have clouded the rating firms’ judgment.
The House Financial Services Subcommittee for Oversight and Investigations
has invited Corzine, who has been publicly silent since resigning as MF Global’s
CEO on Nov. 4, and Bradley Abelow, the firm’s chief operating officer, to look
into the decisions and events leading to the collapse of the New York-based
The Journal, citing its source, said the committee’s members
plan to also look into the interactions between Corzine and rating agencies.
Lawmakers haven’t yet asked any rating firm to attend the hearing, the
Journal’s source said.
NOTE: THIS WAS ANOTHER CASE OF "I DON'T KNOW" "i DON'T
RECALL" RESPONSES TO QUESTIONS FROM CONGRESSINAL MEMBERS. THEN
THEY WALKED OUT UNFAZED.
Jon Corzine sorry for MF Global mess
The CEO of MF Global,
Jon Corzine, told U.S. lawmakers he doesn't know the location of clients'
money that disappeared when the company failed.
Testifying before the U.S. of Representatives' Agriculture Committee
later Thursday, Corzine said that he inherited a company that was on a
The collapse of MF Global on Oct. 31 has raised questions about the adequacy
of regulatory oversight of trading in the massive global commodities market.
"I am devastated by the impact on many people's lives" of the failure,
Corzine said, adding he accepts responsibility for the firm's risky bets, and
its customers' losses weigh on his mind "every day - every hour."
The former U.S. senator has been subpoenaed to explain how the firm, which he
led for about 20 months, became the eighth-largest bankruptcy in U.S. history
and why an estimated $1.2 billion US in client funds is unaccounted for.
Agricultural businesses use brokerage firms such as MF Global to help reduce
their risks in an industry vulnerable to swings in oil, corn and other commodity
When asked directly why clients' funds were not kept separate from money used
by the firm itself, Corzine pleaded ignorance.
"I want to emphasize that, since my resignation from MF Global on November 3,
2011, I have not had access to the information that I would need to understand
what happened," he said.
"It is extremely difficult for me to reconstruct the events that occurred
during the chaotic days and the last hours leading up to the bankruptcy filing."
But under Corzine's leadership, the firm increased risks by making big bets
on European government debt - bets that proved disastrous.
Some of the lawmakers before whom Corzine testified have heard from farmers,
ranchers and small business owners in their districts who are missing money
deposited with the firm.
Canadians had $400M on account
Canadian clients had about $400 million Cdn on account at MF Global Canada
Co. On Nov. 14, an Ontario court approved a move by bankruptcy trustee KPMG to
transfer of most of the money to RBC Dominion Securities.
Corzine, 64, apologized to "all those affected" by MF Global's failure. He
hasn't spoken publicly until today.
"I simply do not know where the money is, or why the accounts have not been
reconciled to date," Corzine said.
He said he can't say whether there were "operational errors" at MF Global or
whether banks or other companies have held onto funds that should be returned to
Corzine said many in his position would invoke their rights under the U.S.
Constitution to avoid incriminating themselves and refuse to testify, but said
that as a former senator, he recognizes the importance of congressional
oversight and will try his best to answer the panel's questions.
Testifying poses risks
A Democrat, Corzine represented New Jersey in the U.S. Senate from 2001
through 2005. He later served as the state's governor.
Before entering politics, he was CEO of Wall Street investment bank Goldman
Sachs from 1994 to 1999.
Testifying poses risks for Corzine. What he says could be used in court
should he ever be charged.
The FBI and several federal regulators are investigating MF Global.
Corzine said the company's revenue was "drying up" when he arrived because of
competition from online and high-tech brokerages.
The amount of borrowed money used - known as leverage - decreased when he ran
the company, he says, and he favoured the trades that doomed it only after
discussions with MF Global's senior traders.
Corzine notes that the European debt securities are all "at least A rated."
Typically, that means the borrower is unlikely to default.
Janet Tavakoli, an expert on the transactions MF Global specialized in, said
Corzine's remarks divert attention from the firm's fundamental flaw: It lacked
the cash to cover its bets after investors started to fear that a major European
nation would default.
"His entire testimony looks like a very skilled way to try to detract from
that key issue," said Tavakoli, president of Tavakoli Structured Finance.
With files from The Associated Press
so then what happens? jail time???
here are all the things I've written about Jon Corzine earlier connected to
all the politicians you've read about.
In a message dated 2/21/2012 10:16:20
A.M. Central Standard Time, luckypig writes:
Paying attention yet
this blog comtinues
on page 84