Friday, June 28, 2013

Banker: All your money are belong to us

After Reaganism crashed the economy, many people claimed that financial markets are self-correcting. Of course, they had also said that before the crash. Alan Greenspan, for instance.

So RtO must suppose that no evidence will ever bring the free marketeers into contact with reality. Further evidence comes from the saga of Jon Corzine. Bloomberg News summarizes the latest revelations:

The CFTC sued Corzine, 66, yesterday for failing to oversee the company properly while it spiraled toward failure in 2011 as $1.6 billion in customer funds went missing. The CFTC alleged he did nothing about inadequate controls over misuse of customer funds, that he was aware of the firm’s extreme shortage of cash and that he didn’t ask any questions about where the money was coming from to make transfers he ordered.
Somehow, Corzine mislaid $1,600,000,000.00 of customer money. He says he has no idea where it went. "Search me."

Note that this happened in 2011. It appears the finance capitalists did not learn anything in 2008. Nothing new, anyway.


  1. Yup, Jon Corzine, the senator from New Jersey, part of government for a substantial piece of his career, hosed the little guy (I personally lost a chunk from the MF Global fiasco). Another perfect example of politicians and government screwing up, especially when they then get involved with the private sector.

  2. He started and ended as a banker, but my point was that bankers don't learn from experience.

    His political career was based entirely on his supposed success as a banker.