In Bed With Jon Corzine

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Here in Nicaragua, it is difficult to complain. Almost impossible to gripe. And if you find yourself doing either one, you shouldn’t be here in the first place. This idyllic locale is kind of an organic, and highly concentrated, blood-pressure medication (perhaps blended with just a smidge of Lexapro).

But a few thousand miles to the north, where Wall Streeters cheat and politicians protect them, legitimate complaints and gripes are easy to come by. There are plenty of obscene abuses of power and miscarriages of justice. You’d have to be comatose — or in Nicaragua — to miss them.

Crony capitalism, and the injustices that flow from it, have become such a dominant force in American society that a return to “normal” feels like a low-probability bet. Epitomizing the injustices that have become all-too-normal in modern America, The New York Times reported that federal authorities are unlikely to bring any criminal charges whatsoever against any of the former executives of the bankrupt M.F. Global, despite the fact that $1.6 billion of clients’ funds remains “missing.”

This latest travesty of justice would seem to confirm what we observed in this column:

Wow!…It’s getting harder to hang a felony charge on a past or present Goldman exec than it is to hang panties on a porn star. The darn things just keep sliding off…

Remember, the Justice Department is one of the same government agencies that can’t bring itself to pose a single embarrassing question to Jon Corzine, former CEO of Goldman Sachs, former New Jersey Senator, former CEO of the fraudulently destroyed M.F. Global and perennial scumbag.

In particular, the Justice Department can’t bring itself to ask Corzine what happened to the $1.6 billion of customer funds that he (allegedly) “disappeared” while overseeing M.F. Global.

Lamentably, your editor was not exaggerating. Despite a 10-month long investigation into the collapse of M.F. Global, the Times reports that federal investigators have not yet spoken to Jon Corzine!

Says the Times:

“[F]ederal authorities are seeking to interview the former chief of the firm, Jon S. Corzine, next month, according to the people involved in the case. Authorities hope that Mr. Corzine, who is expected to accept the invitation, will shed light on the actions of other employees at MF Global.”

How civilized! Federal authorities are extending an “invitation” to Mr. Corzine that they hope — breathlessly, we would imagine — he will accept.

Something ain’t right here, folks. When $1.6 billion disappears, someone took it. Maybe Corzine was not the guy, but someone took it…and that someone was not “lax and porous risk controls.”

In Capital Account, Barry Ritholtz, addresses the baffling indictment-lite investigation of M.F. Global…as only Barry Ritholtz can. Check out this 3-minute clip from Barry’s half-hour segment.

Barry blames injustices like the M.F. Global non-indictments on the fact that “politicians are in bed with the banksters.” And so it would appear. This dangerous liaison has been going on for so long that there would seem to be no hope in sight.

Regards,

Eric Fry
for The Daily Reckoning Australia

From the Archives…

Staring Down the Barrel of Bad Debt
17-08-2012 – Greg Canavan

Taking Over From the US Dollar With Organic Finance
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Australian Banks on the Run
15-08-2012 – Bill Bonner

The Secret Investment to Buy When GDP Falls
14-08-2012 – Nick Hubble

Will the Latest Data From China Cause a Rally in Aussie Stocks?
13-08-2012 – Dan Denning

Eric J. Fry
Eric J. Fry has been a specialist in international equities since the early 1980s. He was a professional portfolio manager for more than 10 years, specializing in international investment strategies and short- selling. Mr. Fry launched the sometimes-abrasive, mostly entertaining and always insightful Rude Awakening.
Eric J. Fry

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Well done Eric, perhaps you might write something on the shenanigans going on here in England. The ex honcho of Barclays Bank has been forced to resign after startling revelations over, among other things, rigging the world wide LIBOR rates,he appeared before a parliamentary committee and yes, you guessed it, didn’t do anything wrong or, if he did, didn’t know he had done it.!! Anyway, it now turns out the Financial Services Regulator, didn’t regulate and, the Bank of England Governor, didn’t govern. Questions are now being asked like, do these people actually have any experience of their jobs, or… Read more »
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