MF Global

Someone is going to prison:

MF Global, the failed securities firm led by former Goldman Sachs chief Jon Corzine, admitted using clients’ money as its financial troubles mounted, a federal official says.

An MF Global executive admitted that to federal regulators in a phone call early Monday after regulators discovered money missing from clients’ accounts, according to an official familiar with the conversation.

The official spoke on condition of anonymity because he wasn’t authorized to discuss an investigation by federal regulators.

Government rules require securities firms to keep clients’ money and company money in separate accounts. Violations can result in civil penalties

Dipping into client funds is *the* big no-no in the financial world. But it seems like they were treating their clients the way Corzine treated the New Jersey taxpayers. It will be interesting to see just how far this goes up. And even scarier is this: did MF Global go rogue? Or are/were other banks doing the same thing? If the latter, this could get extremely ugly extremely fast.

The OWS folks might get their wish after all.

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  1. Section8

    Yeah this is why even though many companies are crooked, having bigger government is even more crooked. The honest politician isn’t so honest and this is just another example. If the government gets big enough It ultimately ends up with the same people running both the government and corporations (in the name of the people of course), which leftists love, but don’t ever take into account the people running the government will simply be the people they despise in the corporate world. Except hedge funds don’t have cops and an army to kick the shit out of you if you get out of line.

    Stick to the basics. Fraud is a crime, and the citizen should have the right to pursue remedy when THEY believe they’ve been defrauded. The government should be the mediator in such disputes, not the participant. We should not be in this situation of waiting for an honest government to decide which of the 10 million laws and regulations that were violated. Laws and regulations that kill the honest guy that tries to follow them, and provides fancy loopholes for those with connections. No wonder the corporations are taking over. I doubt Jon goes to jail, but who knows? We’re due for a sacrificial lamb anyhow.

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  2. AlexInCT

    NOTHING TO SEE HERE! MOVE ON!

    Fuck, these democrats do worse than any of the crooks they ever tell us are conservatives/republicans/not them, but still people pretend they care about the commonman and their plight. The 99% must be the stupid.

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