Today's hearing on the MF Global bankruptcybefore a House committee was well, weird.
This was Corzine's third appearance on the Hill, and the man seems to be imploding before our very eyes. He is dull, listless, and oh, yeah, probably once again walked into a perjury trap. Well, he can always call on Joe Biden to be a character witness at his criminal trial. Corzine knows he faces near total ruin, humiliation, and a lengthy jail term.
Duffey, the head of CME, the SRO, dropped another bombshell today, at the very end. He said this his investigators had been making progress, when then were told by the federal regulators to stop all their inquiries. Duffey looks like a poker player standing apt with a sraight flush. There will be more to come on this. GOP congressmen perked up at his admission..they want answers from the regulators. Stay tuned.
But here's what is most disturbing. We hear over and over that they don't know what happened to the $ 1.2 billion, where it went. Sorry, but tnhat is pure BS, andd I for one, can't understand why everyone is aquiescing in this fiction.
Look, it's easy.
The money was transferred from customers accounts illegally. Forget for the moment the question of who orderd it, who did it. The money then went into the MF Global's various accounts, where it went somewheres. Again, forget for the moment, who ordered the disbursements, or why some creditors/counterparties got paid off, and some didn't.
There is only one way funds and liquid assets move today from firm to firm..that's by wire transfer or other form of EFT. Two points..it's instantaneous,a nd there's a clear, and easily accessible record.
If you are unfortunate enough tonight to be the victim of a murder, among the first things the police do is do dump your phone and bank records. They know immediately who you spoke with the last few days, the times of the calls and the durations. They also know if your ATM has been used ( even after you're dead) and any if you had any major transfers into or out of your bank accounts. They also know what and where you charged anything.
So you think they don't already know where the $$$ went from MF Global? Of course they do. They know which financial institutions got the funds, the amounts, and the dates of the transfers. It's right there.
So why is this suddenly the best kept secret since the site of Dick Cheney's "secret undetermined location?" And why haven't the House committees ( GOP controlled) demanded the data, and released it.
Why are the going along with this information black-out.
Again, think about it. Go ahead. You decide tomorrow to check your bank balance on line...( which, BTW you should do everyday, along with your credit card balances). You notice that your checking account has $100 less than the day before..you see an ATM debit advisory that you know you don't remember making. There's no slip in your wallet. And yes, you were at a bachelor party late last night..very, very late.
You call the bank..they confirm the transaction..tell you the time and the location, and produce a picture of you, ( somewhat s**t-faced) at the ATM.
Yet a wire goes out from MF Global for tens of millions, and the clearing bank can't tell in an instant WHO authorized it..either by a name or a security password, or both, and most importantly, who received it.
Please....let's get real..