The following editorial appeared in the Kansas City Star:
With the investigation into the collapse of MF Global still dragging on, thousands of farmers and ranchers around the Midwest are wondering whether they will ever recover their lost money.
This is the case of the commodities brokerage run by former New Jersey Gov. Jon Corzine, who told Congress he had no idea what happened to $1.2 billion in customer accounts.
Customer accounts at a brokerage are supposed to be segregated, separate from the firm’s trading on its own account. Yet in the MF Global case, the customer money was missing — and its absence represents a severe blow to the integrity of the financial markets. Harold Bradley, chief investment officer at the Kauffman Foundation, said what happened at MF Global was “the most insidious attack on the financial markets in 30 years.”
He wondered why the market clearing system of the various exchanges failed to protect MF Global’s clients — a question shared by Lynn Wagnon, a commodities broker in Coldwater, Kan.
“The clearing system is supposed to be monitoring those funds daily to make sure the segregated funds are there,” he said. “I don’t understand why somebody is not in jail.”
Progress on the case has been frustratingly slow. The New York Times reported the trustee for the now-bankrupt MF Global — charged with recovering money for the brokerage’s creditors — is at loggerheads with the trustee for the client accounts, who must recover money for the customers.
Some of MF Global’s 38,000 clients have received a part of their money, but others have not. Wagnon said his brokerage is owed about $450,000, and his business dropped last year because people had lost faith in the system.
The Commodity Futures Trading Commission should press investigators to quicken their pace into finding out what happened to the segregated customer money while doing more to keep MF Global clients updated on the prospects of recovering their funds.
Comments (19)
Add commentCheck Obama's campaign war
Check Obama's campaign war chest for those "missing" funds.
Corzine is a bundler for Obama -
From opensecrets.org for 2012 election -
Corzine, Jon Hoboken NJ MF Global $933,032 contribution
As a side note. After all the criticizing of the Citizens United ruling, Obama is now touting his brand new super PAC. It's amazing how the tune changes when he sees his campaign donations lagging. And he's directing senior government officials to appear at its fundraisers.
Hypocrite or liar?
Hypocrite or liar?
That would be both Calypso.
Wall Street at work
So much of the Wall Street problem over the last ten plus years have been easily identified as simply allowing these firms to operate with minimal oversight. I can not think of one of these case of huge manipulation and loss of clients funds that has not been found to be the result of outright theft.
Clients end up loosing almost everything in these cases while the criminals end up with tax sheltered million in untouchable accounts due to laws they helped to create. Broker are protected and clients are not.
Show me the money
These brokerage traders are like the gamblers in Vegas. Only its not their money. I would also check the top brass pay and bonuses, some might be there. How much of this money was lost on green energy projects?
Yawn. If I am vehemently
Yawn. If I am vehemently against guns, I probably won't turn one down if I'm forced into a gun fight. I don't particularly blame Obama for utilizing a super PAC, especially since we all know if he decided to forego it entirely, you'd all be creaming your pants in anticipation of a GOP victory.
Your vitriol just shows you're getting ready for another 4 years of misusing the word "socialist," thinking a black man is from Kenya despite reality, mentioning Saul Alinsky in every other breath, and refusing to think rationally about anything regarding science or the Democratic party.
Ahem, Obama wasn't in office..
Those first several writers commenting on the story seem more eager to blame Obama than they seem interested in the truth.. MF Global went down in Sept. of 08.. Obama entered office 4 months later.. A rational person wouldn't blame Obama.. but maybe those commenting are exposing their mental capacity. The question of what and who may be impeding the inquiry into the Wall St. collapses, an inquiry which should be robust, and isn't - is a good one, though.. and I lay a portion of the responsibility at Obama's feet.
@tengs - just a few facts on
@tengs - just a few facts on the MF Global fiasco before you insult our "mental capacity" further -
- Obama wanted Corzine to be his Treasury Secretary but he declined for "family reasons"
- Corzine joined MF Global in March 2010
- MF Global shortfall first appreared on Oct. 26, 2011
- MF Global filed bankrupcy on Oct. 31, 2011
Corzine and Obama are best buddys.
"Jon’s a leader who’s been called to govern in some extraordinary times,” Obama said while campaigning for Corzine in 2009 (which he lost to Chris Christie). “Jon Corzine wasn’t just the first governor to pass an economic recovery plan for his state. He was an ally with the Obama administration in helping us develop a national recovery plan.” (Obama was referring to the $862B stimulus.)
And here's what Joe Biden thinks of Corzine - "he’s the smartest guy I know in terms of the economy and on finance."
All's right with the world -
All's right with the world - p has played the race card and he's out of cogent arguments.
Yes, the race card. Because I
Yes, the race card. Because I certainly just invented that whole Kenyan thing, didn't I?
Or was it George Soros?
Nice deflection, though. You often seem to play the "poor me, you're all being mean" card.
@p - No deflection or pity
@p - No deflection or pity party here - it's just fun and games exposing you leftists!
new super PAC
Just follow the money , you sctatch my back I'll take care of you later.
DOVER, Del. (AP) — Fisker Automotive, an electric car maker that received a half-billion-dollar from the federal government, said Monday that it has laid off workers in Delaware and California.
The layoffs include 26 workers at a former General Motors plant in Wilmington that Fisker is retooling to manufacture its Nina plug-in hybrid sedan. Another 40 contractors and employees who were working in design and development of Fisker's Karma luxury car in Anaheim, Calif., also have been cut.
Science and the Democrats?
Rationality and science do not belong in the same sentence as Democrats. Try out of touch with reality, emotion, not seeing anything beyond what the naked eye can see, and no concept of basic economics. All those failed green projects sum this up nicely.
@Banditrider: Republicans and
@Banditrider: Republicans and other quasi-conservatives have long advocated for supply-side economics, which almost no economists advocate. They argue against climate science, despite a scientific consensus (and, you know, oodles of evidence). They argue against evolution, a scientific theory that not only forms the basis for an entire branch of science (biology), but also has more evidence than nearly every other scientific theory we take for granted. They believe in hare-brained conspiracy theories about presidents actually being Kenyan/Muslim/socialist (not that any of those, save the first one, would matter). They act on fear, thinking anyone who isn't white may be a terrorist, that it's okay to subvert constitutional rights in the name of "security," that invading other countries is justified if we're kinda sure they may have dangerous toys. They believe Americans are free to practice any religion, so long as it's Christianity.
I could go on. And you know it, because you're some kind of partisan hack or shill who says these things without really believing them.
Also, your post is riddled with grammatical errors. The next time you call someone else stupid, you might try learning the basic rules of the English language before making a fool of yourself.
@PP...
Lol! I think you're right bro! The ol' GOP offerings don't look so good, and the writing is on the wall, so it's 4 more years of Obama's brand of Islamic Socialism, doggone it! That'll give ol' Calypso and others 4 more years of trying to edjuhmuhcate the rest of us Philistine Leftists! Don't ya love it?
too
Pp your one funny dude, but seriously try getting some help. I don't think you need a referral to JAMI I think they take walk ins & might be able to adjust your meds
p or should I call ya bro! -
p or should I call ya bro! - project much?
You and your peeps are clinging to the pipe dream of "climate science" (I thought it was called global warming? You had to change the name?) to further the goofy green energy projects and to keep the kook enviros happy. It's been resoundingly discredited and the majority of Americans aren't buying the lies anymore.
So what if most conservatives believe in creationism? What does it matter to you? And actually about a quarter of conservatives believe that both creationism and evolution exist.
I'm not touching Obama's lineage. I just wonder if HE even knows his beginnings!
Good, you got the race card in again - that's 2 times today.
Conservatives don't believe "that it's okay to subvert constitutional rights in the name of "security"". You must still be whining about that same Bush Patriot Act that Obama reauthorized, huh?
Atleast Bush had Congressional approval to invade Afghanistan. That's more than I can say about dear leader taking Libya upon himself. He's such a warrior...
Conservatives believe in religious freedom, unlike the progressives that appear to have a vendetta against the Jewish people in Israel and more recently Catholics. How do you explain that?
Calling out posters on grammar is tiresome and makes you look petty.
calypso
Now, now you can't refute climate change err in mean global warming. After all Al Gore creator of the internet says it's so. And please don't try & state that Barry got us involved in Libya, remember he led from the rear. As for the patriot act, that's nothing compared to keeping getmo hotel open, nit to mention his drone warfare & attacks on US citizens (although on that one I'd agree just wonder who's next)
half
Half a billion to fisker, another half billion to solyndra at least Jon wasn't playing with tax payer dollars, err I won't even mention the first 700 million Barry gave to GM,Chrysler & the unions. Oh by the way no keystone pipeline means all that oils got to go on Warren Buffets rail cars......interesting bed fellows