| MF Global Legally Used Customer Funds |
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eastmn
Senior Member
Cash: $ 81.20
Posts: 393
Joined: 04 Apr 2010
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Former employees now suing and asking for class-action.
Damages based on MFG cooking the books, concealing true
value of company stock (losses).
http://www.msnbc.msn.com/id/45566193/ns/business/
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Wed Dec 07, 2011 7:24 am |
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coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
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I take it they're not the ones that got the bonuses? 
~Tim~
Eye Candy : Why Whimsy
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Wed Dec 07, 2011 8:39 am |
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coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
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| JOHN CORZINE TESTIMONY |
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I've been watching the Corzine testimony on and off. My impressions:
Corzine has been well-coached and well-rehearsed to appear affable, empathetic, agreeable, helpful, and generally likeable. And he's generally succeeding in that without really giving much in the way of any useful information.
However, what's interesting is his reaction when he's asked direct questions about anything concerning misuse of segregated account funds. I'm no expert, but from what little I've read on the subject, he is exhibiting behaviors that the experts say a person who believes he is dissimulating, covering, or outright lying, will exhibit to some degree and which the average person is incapable of avoiding.
~Tim~
Eye Candy : Why Whimsy
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Thu Dec 08, 2011 8:10 pm |
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eastmn
Senior Member
Cash: $ 81.20
Posts: 393
Joined: 04 Apr 2010
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Looks like he never saw it coming; somehow became blind to the risks.
Or is it conspiracy?
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Last edited by eastmn on Fri Dec 09, 2011 7:28 am; edited 1 time in total |
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Thu Dec 08, 2011 11:19 pm |
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coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
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Naw, mostly it's gross stupidity, incompetence, and arrogance combined with a lack of character, discipline, and ethics. Which makes a particularly deadly mix. And if you think I'm kidding just look at his career. I just wasn't paying attention (and apparently neither was the CFTC or the CME ... and I wouldn't be surprised if it comes out the CFTC has some culpability).... but, like I said, if I'd been paying attention and knew he had been hired to be the CEO I think I would at least have pulled out the original capital that was still left in there. But I haven't been very active in trading for some years, only occasionally putting on a long-term one or two-contract position trade. I knew my trades were at some additional risk by not paying close attention (though the market i traded that worked well for me); I had no idea my account collateral was being put at risk by the very people entrusted to NOT take any risk with it. When I put capital at risk I'm ready to take that risk and the losses or rewards that might ensue and any trader understands that. What they don't understand is somebody else taking a risk with THEIR money WITHOUT their consent and their knowledge of the risks involved.
I'll tell ya, the importance of the seg funds part of this whole story cannot be underestimated; it goes to the very heart of the whole business. Whatever other stupid and/or illegal practices occurred there, they take second place to misuse of customer's account collateral. And whatever else happens, THAT must be upheld to the nth degree. In anything involving someone else handling your money, whether it's a trader's account collateral or whether it's grandma's CDs in her bank account, TRUST in the custodian of your funds is the absolute top priority, bar none else. Period.
End of rant. 
~Tim~
Eye Candy : Why Whimsy
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Fri Dec 09, 2011 12:40 am |
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LottomagicZ4941
Senior Member
Cash: $ 7.91
Posts: 2511
Joined: 02 Dec 2004
Location: Earth
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quote:
Originally posted by coaster
Well, I don't feel particularly burned. The approach I took when I opened a futures trading account some, oh, I think 17 years ago? was that I kissed those funds good-bye forever, so I wasn't emotionally tied to that money, nor was it money I needed to survive. Since then, I've brought home about 2/3 of the original capital, and so if all I ever get back is 60%, I'm still well ahead. No, it's not about the money for me; it's more about "who the heck can you trust"
It is better to invest then lose once in a while then to just waist it all.
Those who invest should come out better in the long run.
All we can do is our best. There is the old oil scam. These wells with new technology will . . . . They pump them and they dump them. Knew one guy who got burned with this but the farms he bought. Well lets just say he had good timing on the farms.
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Fri Dec 09, 2011 9:18 am |
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coaster
Senior Advisor
Cash: $ 1357.80
Posts: 6686
Joined: 11 Oct 2005
Location: Wisconsin
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quote:
Originally posted by LottomagicZ4941
Those who invest should come out better in the long run.
Those who speculate ... AND ... consider it a serious and legitimate financial activity, and treat it as such and not as gambling, ALSO generally come out better in the long run (when the rules are followed) 
~Tim~
Eye Candy : Why Whimsy
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Sat Dec 10, 2011 6:50 am |
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