This post on zerohedge was really interesting. Did Jon Corzine lose MF Global’s customers’ money on purpose, so his confederates could profit?
The conspiracy theory is that MF Global’s losses weren’t to random banks. Some of Corzine’s friends were the beneficiary.
Derivatives trades are mostly zero-sum. The State subsidizes the derivatives market via negative real interest rates. Other than that, it’s zero-sum.
If MF Global lost $1.2B, someone else made a profit of $1.2B.
There is a precedent for this sort of thing. Goldman Sachs created a defective mortgage CDO, so that their hedge fund buddies could profit. The CDO was packaged with the worst bonds they could find, and sold to customers as if it was a good investment. When the CDO performed poorly, those customers lost money. That money went straight into Paulson’s hedge fund, the people who organized the scam. A CDO is completely zero sum; the customer’s losses were exactly equal to Paulson’s profits.
Did Jon Corzine lose customers’ money on purpose? Did he take a page from Goldman Sachs’ playbook?
Is Jon Corzine pretending to be an incompetent CEO, when he knows exactly what happened? Did he and his associates set up a hedge fund somewhere that made a ton of money off MF Global?
Jon Corzine is responsible for the loss, whether he did it on purpose or if he’s so incompetent that he didn’t know what’s going on. “I’m incompetent!” should never be a valid excuse if you’re the leader.
It is offensive that CEOs and State leaders play the “I’m incompetent! Therefore, I’m not responsible!” card whenever something bad happens. It is offensive that the mainstream media doesn’t say “If you’re the CEO, you’re responsible for what happens, whether you did it on purpose or if you’re incompetent.” The mainstream media present’s Corzine’s argument as valid, rather than saying “Liar! Liar! Pants on fire!”
The financial industry is one big cesspool of corruption. Why would a bank need competent and honest employees, when they can get the State to give them free money?
My last job was at a large financial institution. I suspected that some of my coworkers were writing defective software on purpose, so they could steal and launder money. There were a lot of red flags and suspicious things.
For a proper investigation, they should discover exactly who got the money. Investigators are saying “We can’t reconstruct what happened.” That’s nonsense. Banks are required to keep records for 7 years. They may be covering up what really happened.
It is possible that one of the lead investigators is in on the scam! Bernard Madoff served on many boards before his Ponzi scam imploded. Most State leaders have the same personality type as Bernard Madoff. They won’t be eager to see someone evil like them get in trouble. They all will be thinking “If Jon Corzine goes to jail, I might be next!”
That is a very interesting conspiracy theory. Did Jon Corzine lose money on purpose, so he could dump the profits to confederates?