Thursday, August 16th, 2012

There Is No "Manslaughter" Charge in Financial Firm Incompetence

Congratulations to former Goldman Sachs sorta-honcho Jon Corzine, who's going to skate off somewhere (somewhere pretty far away from his former clients) after he beats the rap on his latest car wreck, accidentally evaporating A BILLION-PLUS DOLLARS of his customers' money at MF Global. Now everybody there is suing everybody there, and Corzine is thinking about starting a hedge fund, but only after he "accepts the invitation" to testify with federal prosecutors. This is the pig who came on board at MF and fired 1400 people right off the bat, replacing them with some obvious incompetents, after a long career of skating by on risky trades and cocked-up positions, capped off by going neck-deep in crazy European debt positions. Guess what? You can actually pretty much do anything now! Just say it's an accident and you just don't know what happened. Unless of course you're former Goldman Sachs programmer Sergey Aleynikov, who has been arrested AGAIN, on state charges, after his federal conviction for "stealing code" was overturned. His crime: basically? Backing up his work.

15 Comments / Post A Comment

boyofdestiny (#1,243)

Compared to handing the governorship to Chris Christie, this is peanuts.

Lockheed Ventura (#5,536)

Not sure what is incompetent about wiring hundreds of millions of dollars from clients' segregated trading accounts to pay off JP Morgan. It was out and out thievery.

The Obama Administration's corruption on this case is rather astounding, but good to know Americans are protesting over important things like the plight of "Pussy Riot".

Moff (#28)

@Dan Cash@facebook: #234,645, huh?

@Moff : That's some good gogma.

whizz_dumb (#10,650)

@Gef the Talking Mongoose & totally.

Lockheed Ventura (#5,536)

@Dan Cash@facebook The issue is corruption, namely the failure by the Department of Justice to prosecute this massive fraud. Certain financial oligarchs are beyond reproach because of their relationships with and donations to the political establishment. And yes, Americans should be exponentially more concerned with the corruption at the heart of their financial system than a lame art collective half way around the world. One would hope that to be self-evident.

Mr. B (#10,093)

@Dan Cash@facebook Way to make L.V.'s rantings look reasonable, dude.

Moff (#28)

You would think that after a while with all this shit, the former clients would start getting pissed off enough that they'd lead a backlash against it. Are they? And then is it just kinda like in Game of Thrones* when an aristocrat loses power and then might try to rally the people against the oppressive upper class, but is helpless because he hasn't got enough clout now? Or is that the clients lose shitloads of money, but it's not that real of money (and they had plenty to begin with), so their lives don't materially change that much and thus they don't care? Or something else?

I just feel like, at a certain point, people in the 2 or 3 or 4 or 5, if not the 1 percent, are going to start realizing this system is unsustainable. But I am sort of an optimist, maybe.

*I don't know that this ever actually happens in Game of Thrones.

deepomega (#1,720)

@Moff The problem, of course, is that getting ripped off like this can knock you down out of the upper echelons of finance. Losing your money AND your power.

ejcsanfran (#489)

@Moff: Are you implying that Corzine is a dwarf? Or that he fucked his sister?

robxerox (#235,722)

@Moff I think honestly you are underestimating the power of people to delude themselves.

In my opinion, sadly, people will start blaming "terrorists" when they begin starving to death.

zidaane (#373)

“This code is so highly confidential that it is known in the industry as the firm’s ‘secret sauce,’ ” Mr. Vance said Thursday in a statement.

flatfootafleet (#5,753)

Yeah, sorry, but you don't get to back up your work off site with this kind of code.

In this instance there is what you can prove and what you are unable to in court. You have to prove intent to defraud or steal. You can't prosecute an accident (a very very bad one) in these types of cases. I don't know why anyone would give Corzine a job, public or otherwise. He's blown up almost everything he's touched. Same goes for the LTCM guys.

am4 (#235,425)

Yep, this is why I will not vote for Obama again. The Obama Administration refuses to prosecute a single Wall Street player. George H W Bush obtained thousands of convictions after the S & L crime wave, but Obama none. He claims no laws were broken. Please.

This idea that Corzine was involved in a financial accident and broke no law is bullshit. He violated Sarbanes Oxley by signing off on bad financials and controls. Prosecute him for Sarbanes Oxley.

robxerox (#235,722)

@am4 But, but… He has "political will"!!11!!!111

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