The Trend of Regulatory Capture by Large Banks Reaches New Level with MF Global
Why should you care about MF Global and the documented fraud involving former Too Big to Fail bank executives?
We are living in historic times when a precedent is being set. Just like the Nixon Whitehouse ushering in a new era in ethics through Watergate, the criminality involving the looting of $1.6 billion in assets from farmers, ranchers and investors will impact the culture in profound ways.
The spiral downwards, the grafting of power away from government and transferring it to large banks is upon us. Benchmark the point at which our society finds itself with MF Global. Large banks have not only captured regulators, but they have now apparently made inroads with criminal investigators. This is historic. Never before has a “legitimate” business had such carte-like influence on the criminal side of the US justice system.
Never before has a mass fraud that destroyed so much gone without serious investigation. In Congressional Testimony on March 28, 2012 – six months crime was formally discovered – we learned that MF Global CEO Jon Corzine had yet to be questioned. Laurie Ferber, Mr. Corzine’s consigliore since her days at Goldman Sachs, was finally questioned on April 6, 2012. And CFO Steenkamp, the new comer, who appears to be a potential second tier fall guy for the master planner, had not been directly questioned by criminal investigators.
Compare this to the back office workers at MF Global and watch as the witness to a crime become the suspects, powerless as they become the only subject of investigation while watching the C level executives escape without even being questioned.
While the wire transfers were ordered to be sent to key counterparties of Mr. Corzine, it is somehow the fault of the back office that the illegal transfer of funds occurred. Funny that this interpretation can be made without even questioning the C level executives, while back office executives were hard questioned multiple times, segregated from each other and their communication to each other restricted. This all occurred while the C level executives were allowed to operate the company freely and even transfer money around up to six weeks after the bankruptcy.
MF Global is a criminal affair that is dragging the US to new lows. This is not a one off situation. It is a trend that informed individuals should recognize because a 401 K account might be next on the list.
Watch this video to understand the transformation in market integrity to which our society now succumb.
