Tuesday, December 13, 2011

DOH!

Okay, here's the scenario. Former CEO, current COO, and CFO of a multi-billion dollar brokerage firm sitting at a conference table before a congressional committee. Their corporation, MF Global Holdings, which is recently bankrupt, has lost $1.2 billion in money that belongs its clients, 36,000 of them. And none of these three bozos--one of them a former US senator, by the way--have any idea of what happened to that money. They were all like DOH! We don't have a clue; we wish we knew. And by the way, we're really sorry about this and we apologize to our [ripped off] customers. [Story here.]

The Justice Department has opened an investigation into the bankruptcy. The company went under after it bought $6.3 billion worth of bonds from heavily indebted European countries. OK, for starters what kind of asinine investments are these? You want to own some of Greece's debt? Ireland's? Italy's? Are you kidding me? And second, I respectfully submit that these three guys are three lying sacks of shit. Is it credible that the top management of a brokerage house knows nothing about transactions in the company involving billions of dollars? Hell, no. What happened is the company used money from client's accounts, which is supposed to be kept sacrosanct and separate from the firm's own investment money, to cover its losses on the shaky European bonds. And they ain't about to 'fess up to this. But you watch. Truth will out, and these guys will all be shown up for the perjurers they are.
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