29 Jun 2013
Corzine Officially Charged By CFTC For Filing False Reports, Commingling Funds And Other Violations
The crimes… (CFTC is the Commodity Futures Trading Commission)
As alleged, during October 2011, MF Global was on the brink of failure and in desperate need of cash to survive. As Holdings’ Treasurer told Holdings’ CFO at that time, in one of many recorded phone calls obtained by the CFTC, the firm was “skating on the edge,” without “much ice left.” Corzine was warned about the firm’s liquidity stresses, and he knew that the firm violated its own policy that had been designed to protect customer funds. Holdings’ Treasurer recommended to Holdings’ CFO in a recorded call, “we have to tell Jon that enough is enough. We need to take the keys away from him.”
In the last week of October 2011, with virtually no other sources of immediate cash to turn to, the firm repeatedly and unlawfully used customer funds for firm needs, ultimately leaving it nearly $1 billion short of customer funds.
the Complaint charges that MF Global (i) unlawfully failed to notify the CFTC immediately when it knew or should have known of the deficiencies in its customer accounts; (ii) filed false reports with the CFTC that failed to show the deficits in the customer accounts; and (iii) used customer funds for impermissible investments in securities that were not considered readily marketable or highly liquid in violation of CFTC regulation; and that Holdings controlled the operations of MF Global and is therefore liable as a principal for MF Global’s violations of the Commodity Exchange Act and CFTC regulations.
If approved by the United States District Court and the United States Bankruptcy Court, the proposed settlement of all charges against MF Global will require 100% restitution of all remaining commodity customer claims. The proposed order also includes the imposition of a $100 million penalty, which can be paid to the extent MF Global has not fully exhausted all available funds and assets paying customers and then other creditors entitled to priority under bankruptcy law.
They stole money. No jail time. No handcuffs. No nothing. He is a friend of the Obama administration. These acts of selective judgments are not right. They encourage friends of the administration to continue defrauding people without consequence.
By the way – who receives the $100 million penalty?
28 Jun 2013
How did America’s police become a military force on the streets?
If even the earliest attempts at centralized police forces would have alarmed the founders, today’s policing would have terriﬁed them. Today in America SWAT teams violently smash into private homes more than 100 times per day. The vast majority of these raids are to enforce laws against consensual crimes. In many cities, police departments have given up the traditional blue uniforms for “battle dress uniforms” modeled after soldier attire.
The Third Amendment reads, in full: “No soldier shall, in time of peace, be quartered in any house without the consent of the owner, nor in time of war, but in a manner to be prescribed by law.”
This is a lengthy read about the changing roles of police departments around the country. It looks at the long history of police force, botched drug raids, and the Byrne Formula Grant Program which funds these local SWAT teams for drug crimes.
Funding for the Byrne grant program had held steady at about $500 million through most of the Clinton administration. The Bush administration began to pare the program down—to about $170 million by 2008. This was more out of an interest in limiting federal inﬂuence on law enforcement than concern for police abuse or drug war excesses.
During the 2008 presidential campaign, Barack Obama criticized [George W.] Bush and the Republicans for cutting Byrne, a federal police program beloved by his running mate Joe Biden.
He kept his promise. The 2009 American Recovery and Reinvestment Act resuscitated the Byrne grants with a whopping $2 billion infusion, by far the largest budget in the program’s 20-year history.
28 Jun 2013
Senators want to scrap the tax code
The Senate’s chief tax writers want to scrap the entire code and start from scratch in their push for tax reform, and yesterday they gave lawmakers a month to make a case for preserving some of the $1.3 trillion in breaks on the books.
However, the letter says, “we plan to operate from an assumption that all special provisions are out unless there is clear evidence that they: (1) help grow the economy, (2) make the tax code fairer, or (3) effectively promote other important policy objectives.”
I’m all for this. My problem is trusting the people to assemble a code that achieves the sole purpose of funding the government from the population without behavioral incentives and loopholes for politicians and their friends.
28 Jun 2013
Armstrong: Tour de France win was ‘impossible’ without doping
Armstrong, who had his seven Tour wins between 1999 and 2005 stripped from him after he admitted doping, told the French newspaper Le Monde the race could not be won during his heyday without erythropoietin blood doping, which adds oxygen to the blood, Radio France Internationale reported Friday.
Appreciate the note. Wish you would more forthcoming while you were winning those races.
I guess when one confesses their sins, there is freedom to think and speak without worrying about consequences.