Thursday, August 16, 2012

No Executives to be Charged With MF Global And The Disappearance of About $1 Billion in Customer Money

"Good News: You Can Now Officially Steal $1 Billion From Your Customers And Avoid Proseuction, As Long As You're Hooked Up With the Self-Styled "Party of the Common Man"

Special people have special privileges.

A criminal investigation into the collapse of the brokerage firm MF Global and the disappearance of about $1 billion in customer money is now heading into its final stage without charges expected against any top executives.

After 10 months of stitching together evidence on the firm’s demise, criminal investigators are concluding that chaos and porous risk controls at the firm, rather than fraud, allowed the money to disappear, according to people involved in the case.

I don't know why we're talking about porous risk controls because this is not money which was improvidently invested. This is money which simply vanished.

A billion dollars of customer money just disappeared -- it wasn't lost in bad investments, it was lost as in "I can't find it" -- and apparently there is no criminality here.

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