Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Why Most Investors LOST Money by Investing in ARK FUNDS - 27th Jan 22
The “play-to-earn” trend taking the crypto world by storm - 27th Jan 22
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Jon Corzine: The Face of American Crony Capitalism

Politics / Market Regulation Aug 09, 2013 - 08:07 PM GMT

By: Money_Morning

Politics

Garrett Baldwin writes: This week, House Republicans called for a criminal probe of Jon Corzine, the former New Jersey governor and former CEO of MF Global. Republicans allege that Corzine may have committed perjury when testifying in front of Congress after his firm's collapse.

Actually, Corzine personally ran MF Global into the ground.


In October 2011, MF Global declared bankruptcy after Corzine made a bad bet on $6.4 billion in European sovereign debt. After the collapse, more than $1.2 billion in client funds went missing.

Corzine has denied any wrongdoing, even though recorded conversations suggest that Corzine was directly responsible for illicitly redirecting customer funds.

This year, the Justice Department absolved Corzine of any wrongdoing, announcing that after 18 months, they couldn't find any evidence that he committed a crime. So Justice will not be filing any criminal charges against him.

Even though civil charges are pending, it's no coincidence that Corzine won't face any criminal charges or jail time, given the track record of cronyism within the Justice Department. There is also overwhelming evidence that Washington has turned a blind eye to his behavior in the past.

Just the Tip of the Iceberg

Given Corzine's connections, it will be difficult to pin much on him. That is the benefit of running Goldman Sachs and acting as a chief economic adviser to President Obama.

In the end, however, Corzine is just another breed of a sleazy pol - another man who embraces the privatization of profits for himself and the socialization of losses on taxpayers, pensioners, and ordinary Americans.

MF Global is just the tip of the iceberg when it comes to Corzine. In fact, it's staggering that the CFTC even allowed Corzine to engage in derivatives trading following his time as New Jersey governor.

In early 2008, as the financial crisis was just underway, then-governor Corzine raided the state's pension funds in order to stimulate the state economy.

Corzine's plan was to divert $250 million in state pension money into local banks. But it was hardly a fair approach. The money was actually diverted to construction unions and his political allies.

Corzine decided to help out his hurting Wall Street buddies. He used $178 million in pension funds to purchase Lehman Brothers stock, even though the warning signs of the company's epic collapse were clear around the time of the purchase.

The state pension fund lost $115 million in 90 days on Corzine's Lehman bet. And by the end of the year, this fund was underfunded by $2.6 billion. It will likely go insolvent by 2020.

Of course, no one in the U.S. government investigated Corzine's role in diverting public pensions to political allies or back to the friends he kept on Wall Street.

Nor will the Justice Department take any time to bring Corzine to justice for doing the same with his MF Global clients.

There's a pretty good reason for both.

According to documents unearthed by the Government Accountability Institute, MF Global was a client of Covington & Burling, the former law firm of Attorney General Eric Holder and Assistant Attorney General Lanny Breuer.

For a long time, many assumed that Corzine had been excused because he had bundled more than $500,000 for the Obama campaign. But the GAI discovered, coincidentally of course, that Holder's law firm was owed $114,275.55 "for services rendered prior to Oct. 31, 2011."

Many in Washington have sought a special prosecutor on this case and, of course, for other Obama scandals.

There will be no justice in this case. No jail time. No significant fines or personal accountability.

Mr. Corzine will walk because he is part of the protected class, a scrum of crony capitalists who have made their living by reaching into the pockets of other Americans rather than producing anything of value to society.

Cronyism of this type is hardly new to Washington. The Bush administration had a very close relationship with leaders at Enron, another firm that forced shareholders into dumping their pensions into the stock while the top guys sold their shares knowing the company was headed south.

When it comes to men like Jon Corzine, all one needs to do is simply look at the facts and realize the dangers of his influence on the key decision makers in the United States today.

I'll leave you with this picture - It provides the clearest glimpse of where we stand today

Source :http://moneymorning.com/2013/08/09/jon-corzine-the-face-of-american-crony-capitalism/

Money Morning/The Money Map Report

©2013 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in