Thursday, December 8, 2011

"Honorable" Jon S. Corzine testimony to Congress

"Honorable" Jon S. Corzine begins his testimony to congress in less than 5 minutes.  Open thread as I will be updating this thread continuously throughout today's morning proceedings.

175 Former employees from MF Global are now hired to help look at accounts for individual commodity claims! 

The "rant" on the summary of today's morning proceedings so far....

This system is corrupt beyond my wildest dreams.  The head of the cftc doesn't even show today (rescues himself) and one of the congressmen was pissed (threw out his affiliations with goldman sacs, etc).  How can the head of the cftc send in his assistant for one of the most important hearings on record?  You have the assistant saying the CFTC weren't aware of any problems, even though MF Global was told they have to increase their capital position limits months prior (Warning!, Warning!, Warning!).  CFTC says they don't play an active role in monitoring over the FCM's and instead reflected the blame to self-reporting of the corrupt fcm and regulatory agencies (but yet they should be responsible!!)  And then you have mf global investing clients money in soverign debt (and presumably other fcms which we will probably learn about in the coming days).  You have jp morgan who recieved money from a segregated account which the congressman pointed out that they are named differently and wondering why jp morgan wouldn't question the naming of the account (and ask where the money is coming from).  Do we need any more reasons to get even our play money out of gold and silver mining companies and put it into physical?  

Summary of Key Statements from Today's hearings.

1. Peterson.  It appears to me nobody learned a thing from the 2008 fiasco.  MF global at one point was leveraged 37.5-1.  Given what happened here we should focus on strengthening the Dodd-Frank act not weakening it.

2. Peterson- We our looking into a report to see if JP Morgan to confirm if they received FCM customer funds knowingly? 

Peterson- As i understand these segregated accounts have a specific name.  Their is an apparent issue that these would have a specific name, if JP Morgan received these funds, they would maybe want to question where these funds were coming from.

Sommer- No, a bank would not normally question where these funds were coming from. 

Peterson- Hopefully you look into this, apparently JP was trying to get preference on getting money back based on some reports.

3. Kobak: "175 Former employees from MF Global are now helping look at accounts for individual commodity claims!"


Summary of today's proceedings are done to the best of our ability.  Quotes may not be accurate.