That Corzine is still running around the Hamptons is pretty much a travesty.
Obama knows in the end who butters his bread. Obama loves him some corporations and he gave a nod to a few last night. But in the State of the Union Address the president failed to mention many of the other companies which have shown him favor and which his administration has smiled upon.
King Corzine has had his crown more than dented. The former Goldman Sachs CEO, Governor of New Jersey, and Senator is no longer a candidate for the Treasury job as he was in the fall of 2011. His brand is tarnished. His legacy bruised. But it looks like he won’t be going to jail.
The Wall Street Journal reports that a new report on the MF Global fiasco “blasts” Mr. Corzine, he won’t be seeing any time. In fact it appears that he won’t even be sued, but that instead the case will now go to arbitration.
A great piece from Matt TaiBbi at Rolling Stone
The big banks and the government have become one. Regulation has been completely captured and now banks and government do what is little more than a PR dance for the public whenever anything goes wrong.
One reason is to keep out competition with the help of the state.
Technically one of their alums is taking over the Bank of England, Mark Carney, but it is pretty clear that the “vampire squid” now holds sway over nearly the entire European banking system.
You will recall how a former CEO of Goldman Sachs, Hank Paulson, ran the Crash of ’08 as Bush’s treasury secretary by getting an ethics waiver so that he could talk almost every day with Lloyd Blankfein, CEO of Goldman Sachs.
“I’m no prosecutor, but this reluctance to hold Corzine criminally responsible for what happened at MF Global seems like a crime in itself.”
Futures Magazine examines MF Global’s “Original Sin.”
We are coming up on the 1 year anniversary of MF Global’s implosion yet Jon Corzine still roams free. He still holds that he has no idea where the $1.6 billion went to.
“It was there one minute, and then, it just disappeared. I wish I could help but I am just as befuddled as you. In the mean time you don’t mind if I jet out to the Hamptons while you guys sort this out do you? It is so nice by the sea this time of year.”
But Corzine is just one of dozens of bankers who in another era would have seen a pair of wrist shackles. Why is this era so different? Why in this time of unprecedented economic carnage and obvious chicanery has no one gone to jail?
Corzine shipped his client’s funds to JP Morgan (allegedly) to cover lines of credit because his bets went the wrong way in Europe. The attorney for the people who lost their money believes the evidence of fraud is pretty clear. The DOJ however has not been pursuing leads with the vigor one might expect in such a case.
Koutoulas explains below.