Interesting let's see if this is first failure of customer segregated accounts. My guess from Refco will be that the remaining assests will be auctioned off with terms that say they get remibursed and have a waiting period to withdraw at some level.
No, they are in bankruptcy. In chapter 11, all executory contracts are voidable. The bankruptcy trustee can refuse to pay his legal expenses, just as he can rescind anyone else's employment ocntract. I think the trustee would be under huge pressure to cut Corzine off. In any event, an indemnity claim would go into the unsecured creditor category, making full repayment doubtful. Unless they come up with the segregated funds, someone has to go to jail over this. Probably several people. Getting legal fees covered will be the least of Corzine's problems.
You have a point, but there is very clear legislation that puts customers first. Case law in its entirely puts the segregated account holder first, with no exceptions. Dipping your fingers into client accounts is roughly as legal as robbing a bank at gunpoint. There is a lot of scare mongering going on here. We need to eat more tofu But I'm quite curious about public opinion here. Whom does Joe Public hate more? Wall Street fat cats or spivvy futures speculators?
What are the chances Obama does not pardon the guy as his last act before leaving office after all the GS and Wall Street money that will be flooding into his campaign. I would bet as I write this... Corzine has the best campaign finance lawyer figuring out a way to get Obama 8 figures. These commericals preying on your fear of Mormon presidents and their mulitiple Gods paid for by the unknown very short duration angel Moroni PAC.
This Corzine guy needs to be punished for ruining the reputation of the futures industry and the confidence in segregated accounts. Clients from all sorts of FCMs are running away.
Do we have any classics scholars here? Isn't "Moroni" the Latin plural of Moron? As in for example the plural of "alumnus" or "alumna" would be "alumni" , wouldn't it?
AMEN ! Corzine has always.... 1) LOOKED SLEEZY 2) ACTED SLEEZY 3) WORKED FOR A SLEEZY EMPLOYER I mean, wow, this guy has criminal written all over him !