You Sexy M.F.
Here are a bunch of videos and links which update you on MF Global.
Bloomberg writes: “Andrew Stoltmann, a Chicago lawyer who represents investors in securities litigation, talks about MF Global Holdings Ltd. and prospects for stronger securities regulation. MF Global, under investigation by U.S. regulators after filing for bankruptcy protection, violated requirements that it keep clients’ collateral separate from its own accounts, said CME Group Inc. Chief Executive Officer Craig Donohue on a conference call with analysts today.”
The Wall Street Journal writes: "MF Global admitted to federal regulators that money had been diverted out of customer accounts, according to a federal official who said the move violated the law."
Also see: MF Global Admitted Using Client Money As Troubles Mounted: Official
Links:
Andrew Stoltmann is dreaming if they will allow for more regulation after Wall Street and the banks lobbied so vigorously to gut the Dodd Frank Bill. A return to Glass-Steagall and making investment banks partnerships again would reduce systemic risk.
What this reminds me most of is the scene in the Wizard of OZ where Toto (the little dog) put back the curtain and we find out the wizard is an incompetent (well, maybe not a total incompetent – he did have a good heart and had good insights about Dorothy and her friends, but he was WAY over his head as wizard, with more than a little fraud).
Corzine, guy who ran Goldman, US Senator, a governor, and worth (600$ million or so????) really appears to really not know what he was doing.
Now, its not too bright of me to be just figuring this out, or maybe more accurately, accepting this. Is everybody at the top just there because of luck and good advertizing?
But it seems to me that at the most basic level our society is losing the ability to distinguish between the wise, the honorable, and the capable.
How is it that THE MARKET provided this man with so much money? (of course, the MARKET provided lots of loans to people who couldn’t pay them back)…
I do think that the vast majority of the top Wall Street are just lucky. They may have had a talent, but that does not necessarily extend to everything that they do. Donald Trump has ridden the property bubble and has had his companies go bankrupt a number of times. So hardly a business genius. Warren Buffet and George Soros have both risen from small beginnings but have stuck to what they know well. Buffets business decisions recently have been questionable but he has seemed to do well even so. There are geniuses out there but are they the majority? Far from it.
Very good points.
After being dumped by Goldman, did Corzine feel he had to vindicate himself on Wall Street (or maybe himself???) and prove those guys just didn’t recognize how smart he was? I do get the impression that he believed fervently in more risk, more reward…and forgot about the ‘more loss’
I think that he was riding on his past glories when he went into politics, all he needed was money and a name. He had those, so it was easy.
Geniuses make up a small percentage of the population and I doubt that they all end up on Wall Street, that would leave the rest of the nation genius free.