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Gracious after a billion dollars in customer money disappears just vanishes into thin there sounds like something fishy was going on at MF global -- But -- it appears none of the firm's top executives to face any criminal charges -- includes MF -- -- former CEO former US senator and New Jersey governor Jon Corzine.
So what's up -- this no crime more -- something else.
Do you wonder why financial executives in general really faced prosecution.
New -- as a former special inspector general on TARP is also the author of the brand new -- bailout a look at government officials going to extremes to serve Wall Street often at your expense that set you back -- Thank you for having me.
Yeah -- -- before the viewers who know they've had a long history as a federal prosecutor before you came to Washington Tennessee inspector general of -- and in reading your book the one thing that I would not have a -- -- things from it.
But I haven't quite caught my attention was -- your frustration with the Justice Department's ability to investigate these crimes is that.
Is that a fair assessment of what you said.
Yes and you know here -- MF global I actually as a prosecutor.
I was in charge of the prosecution of the predecessor entity -- go from which this this group -- MF global emerged.
On and you know back then there -- committing a similar type of behavior which was fraud and was crime of stealing customer money for use by the company.
In this image of what you know with MF global what are they doing that has -- now escaping any sort of apparently criminal what charges.
What they did is it is a major no no in this industry which is they dipped into segregated customer funds.
Which are supposed to be.
You kept separate and are not to be -- for general corporate purposes.
And it appears as there was a run on the bank because a very risky bets that that Corzine had made at the parent company level.
They dipped into that customer money which they weren't supposed to do.
To help cover those -- cover money going out of the bank.
And when the music stopped.
There was this enormous cash shortfall and these customers.
Again who is supposed to be protected under the law we're left with the with pennies on the -- 7080 sensed -- huge losses as a result.
Neo lets some most of this and other terms that's good defense attorney and does and does your federal prosecutor if you handed me your wallet and said hold it what do you for a little while and I said sure you leave the room and I think you know what.
I -- extra from my read because a little short this month and I dip into your wallet and take the -- that's that would be stealing right.
Now how absolutely and and that's you know that's that's a good comparison to what happened here.
Whatsoever so why Indy if someone did say you are you sitting dipped -- segregated customer funds it seems like really nice language for taking some money that simply doesn't block -- and -- no authority to use for your own selfish reasons.
Why isn't that hate crime and why -- -- prosecuted.
Well the defense it appears to be had been advanced Jon Corzine testified a couple times in front of congress.
And it appears according to news that news accounts.
To be accepted by Department of Justice that it was just a fog of war there was so much chaos going on in the bank.
And so much money flowing out of wanna -- and into another.
That they just didn't realize that they had taken a oh about a billion of customer funds.
And and that was that was -- defense that it seemed kind of laughable and it was advanced.
But appears that this plan Department of Justice investigation.
They've not been able to put that knowledge in Jon Corzine the other senior executives' minds that this was money that they've they've they shouldn't have taken that they were violating these -- -- but what it.
Gretna -- Pulitzer striking here is that among the evidence that that came out there was real evidence that a lot of -- there were a lot of red flags being flown.
There within the company outside of the company.
The thankless confronting Corzine saying are you sure this is not customer money.
So there is all of this thing going around it which really made me think that this was a case they were finally got to -- case -- was right for criminal prosecution.
But as it now appears it's not going to happen and yet again it seems like Wall Street.
Having done incredibly unethical behavior.
Is going to walk away with all of their bonuses intact.
I'll Waltz while farmers and and in the greater country is lately is as a victim.
Well in this to -- this -- this -- -- the legacy of this Justice Department the attorney general Eric Holder made I understand the concept fog of war but if you in my example to unify a lot of pressure my landlords calling me I'm -- I've got other bills I'm confused I'm really not -- personally use your -- that fog of war would be so unconvincing answer about but who are crime like that that.
Have a hard time understanding even of senator Jon Corzine.
Wasn't aware of it somebody did different that's fun and -- shouldn't there so someone must have known something -- writing -- prison governor Corzine somebody dead.
And they're still they're still talking about possible case against lower level employees.
Who were directly responsible but I agree you know fairly or unfairly.
Even if this is the right decision.
It is -- it is a continuing black mark -- legacy of Eric Holder in this Justice Department.
And you can't -- this other than through the prism of the prior failures in the absence of Wall Street cases.
Especially after big announcements of task force in 2009.
And again earlier this year.
And I think there's a real credibility crisis with the Department of Justice right now.
And of course that people who lost the money where these billion pound many -- -- their lives we're kind of their room but certainly Eminem take the last word -- -- -- Changed and who is whether -- -- money for college education for kids or whatever but anyway.
Not a black market.
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