Human Events Blog

Good news: Jon Corzine’s missing $1.6 billion has been located

Somehow, the chief investment guru of the Obama Administration, former New Jersey governor, Democrat senator, and top Obama campaign contributor Jon Corzine – managed to lose $1.6 billion of his clients’ money, in the fiery crash of his MF Global corporation.  During the extensive congressional investigations, the term “vaporized” was floated. 

Apparently “vaporization” doesn’t mean jail time when you make a billion dollars disappear, which is probably for the best, since it would be tough on C-SPAN to cover Congress if they were all in prison. 

Now CNN Money brings us the happy news that congressional investigators have tracked down the missing client funds.  Unfortunately, the firm’s clients won’t be getting a big chunk of it back any time soon.  Six months after MF Global collapsed, customers are said to have recovered about 70 percent of what they’re owed, and some of them might get to 80 percent following a recent bankruptcy court action.  Strangely enough, there still isn’t any sign of orange jumpsuits for the persons responsible.

Investigators probing the collapse of bankrupt brokerage MF Global said Tuesday that they have located the $1.6 billion in customer money that had gone missing from the firm.

But just how much of those funds can be returned to the firm’s clients, and who will be held responsible for their misappropriation, remains to be seen.

James Giddens, the trustee overseeing the liquidation of MF Global Inc, told the Senate Banking Committee on Tuesday that his team’s analysis of how the money went missing “is substantially concluded.”

“We can trace where the cash and securities in the firm went, and that we’ve done,” Giddens said.

So what happened to the loot?

Roughly $700 million of the missing money is now locked up with MF Global’s subsidiary in the United Kingdom, where Giddens and his team are engaged in litigation to have it returned to U.S. customers. Giddens said he is “reasonably confident” that these funds will be recovered, though he added that it will be a lengthy process with no guarantee of success.

Another $220 million was transferred inadvertently from the accounts of securities customers to those of commodities customers. That money is now in limbo amid a dispute over which customers it belongs to, said Kent Jarrell, a spokesman for Giddens.

The final $680 million or so was transferred to other financial institutions with which MF Global did business, including a substantial portion that went to JPMorgan.

Giddens said his team has “a solid basis for seeking the recovery of some of the funds that were transferred to JPMorgan,” and is engaged in ongoing talks on the issue. JPMorgan did not immediately return a request for comment.

I suppose “limbo” is an improvement over “vaporization.”  Maybe they should allow MF Global clients to visit their money periodically in limbo, and gaze longingly at it, while they hold hands and dream of happier times.

Speaking of those orange jumpsuits:

“Crimes have been committed here without a doubt,” said James Koutoulas, an attorney and trader who has been advocating on behalf of MF Global customers.

“We think there are enough facts out here to start arresting people and start filing charges.”

Regulators from the SEC and Commodity Futures Trading Commission “can only seek civil penalties and restitution for customers, but their findings could help form the basis of a criminal case brought by the Justice Department.” 

Oh, that’s encouraging.  Advice for SEC regulators: do not send Attorney General Eric Holder an email to request that criminal case.  He doesn’t always read his emails.  He missed a ton of them dealing with some wacky hijinks involving American guns in Mexico.

Jon Corzine himself may face a civil suit from the trustee overseeing MF Global’s liquidation.  Meanwhile, he is still delivering huge amounts of money to the Obama campaign.  According to the Weekly Standard, Corzine is listed as a top bundler in the most recent Obama 2012 campaign documents, with over half a million dollars to his credit.  As far as I can tell, none of it was “vaporized.”

But remember, Barack Obama is the Little Guy’s best defense against Wall Street predators!

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  • deeme

    With a bundler like Corzine, it’s easy to play the little guy..No silver spoon in his mouth , just a whole bunch of gold plated , questionable handshakes and winks..

  • Ol_Irish_Barrister

    I’m confident the Corzine Pardon has already been drafted and is just sitting in Obama’s top desk drawer, awaiting his signature immediately after the November election.  Corzine is BUYING it, on the “Installment Plan”, by bundling contributions to Obama’s campaign. 

  • GomeznSA

    OIB – I don’t think there is a desk big enough anywhere in DC to hold all the pardons that the bamster will have to issue upon his departure. 
    Since the feckless house of ‘representatives’ (who do they really rep – it sure ain’t us) refuses to impeach him (ya think that the ‘trayvon’ brouhaha was a warning?) and of course should they accidentally do so the inept harry senate would never convict him. If anyone thinks it has been a bumpy ride so far, watch how things shake out over the summer.

  • http://pulse.yahoo.com/_PYMI4LCBAM7PX5457244M3W6BQ Confused

    Our laws only apply to the unprotected folks now. Nothing will happen here. Indeed, as this group of Chicago thugs is actually a pretty simple group, they may wish to learn something from corzine.

  • BH206L3

    John Corzine, found the cash, why praise the lord! More like I better find it or go to prison. On that level you don’t know where you put 1.6 billion dollars if you are that stupid, you would never get to that level. He knew were the money was. He figured that they would just take his word for it, lots of firms like his when under in this current down turn. And He would have an extra 1.6 billion to throw around. Madoff is in jail, why is Corzine still on the streets? Seems to me if this was Mitt, he would already be in jail.

  • rickgee

    “We think there are enough facts out here to start arresting people and start filing charges.”
    Yeah, but you have to remember, these are Democrats. That means it is simply a misunderstanding.

  • M75462

    I could very well be the smallest of MF ( so appropriate, dontcha think?) Global’s customers. I still have money owed to me, and I cannot do business without that money in my margin account.

    So, Jon Corzine, if I ever run into you, you will know it, you fat piece of crap, you!

  • http://www.facebook.com/andersongya Gary Anderson

    SADLY, CORZINE, LIKE MANY OBAMA SURROGATES, ARE MIRED IN DECEIT, DECEPTION AND DISTORTIONS. HAPPILY, THE REIGN OF TERROR WILL END IN NOVEMBER.

  • McHebrew

    The Romney committee to re-elect Obama had better not run any ad’s linking the Wall Street criminal Corzine raising cash for Obama.

  • Hologram5

    FDR’s NEW DEAL did NOT save capitalism. There is no data to prove that because of the WWII war machine is what really brought the economy back to life. Keynesian spending fails. Hence the collapse of the Eurozone.

  • http://pulse.yahoo.com/_5NEXYFPJAXTERDRLWK2SLVOBWM Big_Bear

    Funny money. 1s and 0s in a computer.

  • http://www.facebook.com/people/Francis-Hennessey/100001557463074 Francis Hennessey

    Not lies, obfuscations. different. Purposeful misrepresentations. Accomplish what we want without notice.

  • http://www.facebook.com/people/Francis-Hennessey/100001557463074 Francis Hennessey

    We are NOT the minority. Do not subscribe to the mainstream media! Do not watch or tune in to ABC,CBS, NBC, CNBC, MSNBC,CNN, HNN, (except to gather intelligence on the enemy) and they are the enemy. I am serious! Call advertisers, call the programs, call the networks! Complain! If 10 million people call a network, they’ll at least make a note of it!

  • http://www.facebook.com/people/Francis-Hennessey/100001557463074 Francis Hennessey

    Yeah, I’m on their list! So are you, just for being here!

  • FreeManinAmerica

    They’ll both burn in Hell, no matter where they spend the rest of their time on Earth.

  • ajain31

    Note: The author, John F. Ince of this article is a former classmate of Mitt Romney at Harvard Business School and former reporter at Fortune Magazine. He is the author of Mitt Romney: King of Bain and the Man Who Wants To Be President.

    There are at least 12 reasons why Mitt Romney would not make a good president. Here’s John F. Ince’s list. What’s yours?
    1 • Romney neither understands nor represents most Americans. The man lacks empathy for those who have not had all the benefits he has had in life. His presidency would be deeply polarizing. One can easily image his election as president would generate new waves of social unrest and violence. He clearly represents the 1% and the 99% will not tolerate policies that exacerbate the growing divisions between rich and poor.
    2 • Romney’s job creation claims are inflated and unrealistic. Mitt Romney’s professional career was based on a very specific task: buying and selling companies for profit. He wants people to think that this qualifies him to be a job creator. With the exception of his investment in Staples and a few other early venture capital deals, his jobs creation claims are mostly chimera. He takes credit for creating jobs, when he was only an investor in those companies, not an executive. In practice, he predominantly used his power as an investor to eliminate jobs and shift other jobs overseas, all in the interest of making profits.
    3 • Romney does not have a sound fiscal plan. Extrapolating from the projections Romney has offered for increased defense spending and tax cuts, his policies would blow a hole in the Federal budget, further eroding investors faith in the government’s ability to get its fiscal house in order.
    4 • Romney has little respect for the natural environment, nor a commitment to protect and preserve it for future generations. He blindly subscribes to Republican views that climate change is not scientifically proven. He gives no indication of any desire to develop alternative sources of energy that can mitigate the man made sources of pollutants. Instead he supports the rollback of environmental regulations all but giving companies a green light to pollute the environment and waste vital natural resources.
    5 • Romney has lived a cloistered and privileged life and today has a very narrow view of the world. From the Cranbrook School to Brigham Young University, to Harvard Business School to Bain Capital, it’s difficult to imagine anyone who has been less exposed to the lives and conditions under which most Americans live. The covenants of his Mormon faith are extremely rigid, restrictive and unrealistic. His devotion to his faith is admirable, but his inability to step beyond the confines of that religion suggest that he would have difficulty reconciling who he is with who others are in an increasingly diverse world.
    6 • Romney’s worldview is rooted in intolerance. He has a very narrow view of the world. America today is a diverse nation with many different racial groups, faiths, all in need of respect. The bully incident at his prep school and his aggressive corporate behavior buying and selling companies at Bain Capital suggest someone who has little desire help those who are different, less fortunate and in weaker position than him.
    7 • Romney does not fully understand the transformative power of technological change. Mitt has no professional technical training. Most of the companies he invested in at Bain were low tech. His expertise is finance: specifically buying and selling companies. All this suggests someone who will pay lip service to the tech sector, but won’t fully grasp the potential for transforming the economy and culture through advancing technology.
    8 • Romney is temperamentally unfit for the presidency. He is peevish, controlling and less than transparent. He has a rigid worldview that revolves around what is best for himself and a small circle of those who support him.
    9 • Romney lacks direct foreign policy experience. His four years as Governor of Massachusetts do not give him sufficient knowledge or expertise to effectively deal with an increasingly complex world. On the job learners nearly always make blunders, sometimes blunders so large that they create huge problems for the U. S..
    10 • Romney lacks integrity and honesty. His fudging of issues is a sign that he feels he can head fake his way though difficult debates. His statement that he does not remember the prep school bully incident is implausible. His evasiveness over release of tax forms and embellishment of his accomplishments are all red flags. His decisions as an executive at Bain Capital were not rooted in ethical behavior. The man is simply not forthright enough to earn the trust of the American people.
    11 • Romney has no commitment to women or equal rights. There is little in his public statements or record to suggest he feels any responsibility for advancing the interests of women and minorities.
    12 • Romney lacks sufficient charisma and personality to be a strong leader. The country needs someone to lead forcefully and inspire citizens to tackle problems that threaten the diminishment of American stature on the world stage. Romney’s robotic and reptilian personality fails to connect, leaving people feeling that Romney is in the game only for himself, rather than in it for the good of all.
    Note: The author, John F. Ince of this article is a former classmate of Mitt Romney at Harvard Business School and former reporter at Fortune Magazine. He is the author of Mitt Romney: King of Bain and the Man Who Wants To Be President.

  • ajain31

    President Barack Obama is keeping up a drumbeat of skepticism over Mitt Romney’s insistence — displayed in a blitz of TV interviews — that he stepped down from his private equity firm years earlier than federal records indicate.

    Obama planned another day of campaigning in Virginia on Saturday, a state he won in 2008 but before that last supported a Democratic presidential nominee in 1964. Advisers said he would remind voters of the discrepancies between Securities and Exchange Commission filings and Romney’s recollection of his role at the Boston-based firm.

    His re-election campaign released an ad that repeated its allegation that Romney’s Bain Capital shipped American jobs to China and Mexico; that Romney has personal wealth in investments in Switzerland, Bermuda and the Cayman Islands; and that as governor of Massachusetts, he outsourced state jobs to India.

    “Mitt Romney’s not the solution. He’s the problem,” Obama’s latest ad says as it plays video of Romney awkwardly singing “America the Beautiful.”

    The ad was set to run in the battleground states of Colorado, Florida, Iowa, North Carolina, New Hampshire, Nevada, Ohio, Pennsylvania and Virginia.

    The ad, targeting Romney’s vast personal wealth, comes as Democrats — and some Republicans — call for Romney to release tax returns going back several years. Romney has said anew that he won’t go beyond releasing his 2010 tax records and, before the election, his 2011 taxes.

    “You can never satisfy the opposition research team of the Obama organization,” Romney told CBS on Friday. In the same round of interviews in which he defended his account of his role at Bain, Romney said Obama owed him an apology for an aide’s suggestion that the Security and Exchange Commission filings, if false, could bring a felony charge.

    “This is simply beneath the dignity of the presidency of the United States,” Romney told ABC.

    It wasn’t just Obama, though, pushing the presumptive Republican nominee to put the issue of his tax returns and wealth to rest.

    “There is no whining in politics,” chided John Weaver, a veteran Republican strategist. “Stop demanding an apology, release your tax returns.”

    Contact:
    Ed Schlick
    Executive Director
    Maine People’s Voting Coalition
    E-mail eschlick@roadrunner.com

    YOU CAN JOIN THE COALITION – JUST SEND AN E-MAIL TO GET INFORMATION

  • ajain31

    President Barack Obama is keeping up a drumbeat of skepticism over Mitt Romney’s insistence — displayed in a blitz of TV interviews — that he stepped down from his private equity firm years earlier than federal records indicate.

    Obama planned another day of campaigning in Virginia on Saturday, a state he won in 2008 but before that last supported a Democratic presidential nominee in 1964. Advisers said he would remind voters of the discrepancies between Securities and Exchange Commission filings and Romney’s recollection of his role at the Boston-based firm.

    His re-election campaign released an ad that repeated its allegation that Romney’s Bain Capital shipped American jobs to China and Mexico; that Romney has personal wealth in investments in Switzerland, Bermuda and the Cayman Islands; and that as governor of Massachusetts, he outsourced state jobs to India.

    “Mitt Romney’s not the solution. He’s the problem,” Obama’s latest ad says as it plays video of Romney awkwardly singing “America the Beautiful.”

    The ad was set to run in the battleground states of Colorado, Florida, Iowa, North Carolina, New Hampshire, Nevada, Ohio, Pennsylvania and Virginia.

    The ad, targeting Romney’s vast personal wealth, comes as Democrats — and some Republicans — call for Romney to release tax returns going back several years. Romney has said anew that he won’t go beyond releasing his 2010 tax records and, before the election, his 2011 taxes.

    “You can never satisfy the opposition research team of the Obama organization,” Romney told CBS on Friday. In the same round of interviews in which he defended his account of his role at Bain, Romney said Obama owed him an apology for an aide’s suggestion that the Security and Exchange Commission filings, if false, could bring a felony charge.

    “This is simply beneath the dignity of the presidency of the United States,” Romney told ABC.

    It wasn’t just Obama, though, pushing the presumptive Republican nominee to put the issue of his tax returns and wealth to rest.

    “There is no whining in politics,” chided John Weaver, a veteran Republican strategist. “Stop demanding an apology, release your tax returns.”

    Contact:
    Ed Schlick
    Executive Director
    Maine People’s Voting Coalition
    E-mail eschlick@roadrunner.com

    YOU CAN JOIN THE COALITION – JUST SEND AN E-MAIL TO GET INFORMATION

  • obadiah_edomite

    “But remember, Barack Obama is the Little Guy’s best defense against Wall Street predators!” This is true. Of course, Obama betrayed the trust the Little Guy put in him. But there is certainly no reason for the Little Guy to trust Romney to look after his interests. Romney is a Wall Street predator and he stands for the interests of Wall Street predators. Guess what! The Wall Street predators own both parties!

  • http://www.facebook.com/people/Wolff-Bachner/100000356049591 Wolff Bachner

    so the big banks will keep the stolen funds, even though it doesn’t belong to them. what about doing the right thing for once, and returning the damn money that suddenly reappeared. why the hell does Coriznes company have to sue their own British subsidiary to get the funds back? this is simply insane. It is time to write real laws to put an end to the out and out open thievery by banks and brokerage firms. enough is enough.

  • badgerpatriot1970

    Let’s hope they send the email to the DOJ in February ’13.

  • http://profiles.yahoo.com/u/OSPGYMXOE6OEZDBTDINHRZQVNQ Da Kingfish

    It was all safe and warm tucked under Ovomits bed.

  • David Buls

    if there is a God, and there is good reason to believe there is, these people will take the left turn and burn in the fire of forever. they’d better hope that there is not one, but they’ve got a 50-50 chance, and those odds are too long to chance it

  • http://www.facebook.com/dleatherman2 Dennis Leatherman

    Whatever happened to ‘ Ignorance of the law is no excuse?’

  • http://www.facebook.com/people/Les-Legato/100003769040209 Les Legato

    Corsine deserves a cell with Madoff.

  • mbarker12474

    If you listen to the radio or read news on the internet, you tune in to ABC, CBS, NBC, and the Associated Press, Reuters, etc. …. It’s not good enough for a few of us to turn them off. The wire services must be toppled and replaced.