Discussion in 'Wall St. News' started by noob_trad3r, Nov 4, 2011.
Problem is he is indemnified by MF global. All of his expenses and fees come out of their remaining assets. He can spend all of MF global assets defending himself and hold up and distributions until he is fully released of all claims.
In any case, it's incredible how little Corzine and his associates learned from the collapses of Bear Stearns, Merrill Lynch, Lehman Bros., and AIG. And it's very hard to believe that just a few months ago, Corzine was considered the front-runner to be the next treasury secretary.
We dodged a bullet. Treasury secretary. Opps.
are you sure?
Some of the money will go to defend Corzine instead of making customers whole? This is a joke right?
I don't believe that MF Global would cover his legal fees in the event of criminal charges only civil litigation and even then he would probably pay for his own attorney anyway to represent his interests and not the company's (he's not hurting for the money apparently either).
If he is accused of criminal wrongdoing that would likely void his employment contract and any benefits he was to receive after leaving the company. Just a thought...
His funds get cut off only after a conviction. Until then MF Global foots the bill. If he's found guilt than MF Global can sue him to recover the amounts paid out. Litigation sucks especially when the accused can burn the accuser's money to defend himself.
Actually, you are right. These MF'ers even put it in his contract. I don't remember Enron's shell paying for Skilling and Lay's defense but looks like MF Global went one better for their CEO.
"(d) Indemnification. To the fullest extent permitted by applicable law, as it presently exists or may hereafter be amended, MF Global shall indemnify you against any actual or threatened action, suit or proceeding, whether civil, criminal, administrative or investigative, against you or in which you are otherwise involved arising by reason of your status as a director, officer, employee and/or agent of the MF Global Group and shall pay the expenses, including attorneysâ fees, incurred by you in defending any such action, suit or proceeding in advance of its final disposition. "
Yes, but MF Global will only pay from their assets. Segregated client accounts do not form part of MF Global's assets. If they do, it is the END of the futures industry, PERIOD. The people running the exchanges and FCMs know this.. why would the guys selling the picks and shovels scare away the gold prospectors?
The Commodity Exchange Act clearly states that FCM segregated clients with missing funds come first in bankruptcy proceedings. Recovering funds that are not missing is not bankruptcy at all, it's account transfer.
Yeah, it would be a death blow to the futures industry, but at the same time I'm getting that sinking feeling that we've reached the point where they are cannibalizing themselves. Essentially, the industry has run out of greater fools (i.e. retail money is long gone). Now we've moved onto the terminal stage.
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