MF Global Missing Money and Saddam's Missing WMDs

Jesse, via nc links:

 Like the WMD's in Iraq, the financial people at MF Global spent three days looking for an accounting error to explain how $1.6 billion in customer money went missing. And like the WMD's in Iraq, the chimerical accounting error never existed. The reason for the missing money was a deception with a purpose.

Edith O'Brien has the answers, certainly to at least the first phase of the fraud, which involved taking customer money from segregated accounts to meet margin calls.

The second phase of this scandal is external, involving the parties who hid the stolen customer money, most likely manipulated the post-collapse bankruptcy process to favor themselves over the victims, and may possibly have been involved in the takedown of MF Global in the first place.

 I wonder if there were CDS and stock options that paid off with their bankruptcy. Who benefited from the failure of one of the larger clearing brokers serving the retail customer? Who held the other side of MF Global's trades?

Besides Edith O'Brien and Jon Corzine, the parties with the greatest insight into MF Global's positions and financial structure were JP Morgan and Goldman Sachs based on the reports that I have read. As Francine McKenna has said, JPM knew MF Global 'all too well.'

This analysis by CFO.com helps to highlight the key issues in the first phase.

The spin that these were just simple 'accounting errors' and that the money 'simply vaporized' is pure fantasy, repeated by a servile and unambitious mainstream media, and the Wall Street demimonde of enablers and attendants.

When will the crooks get charged?