Corzine rule?

Jeffrey Carter:

Came across this article on May 29 that talks about the continuing saga of MF Global and Jon Corzine. It’s amazing that this epic financial scandal gets no consistent main stream media coverage. Over a billion was stolen. Corzine is in Madoff territory.

Here is the proposed rule,

Futures brokers would need to get approval from a top executive before making big withdrawals from customer accounts under a rule now pending and referred to in the industry as the “Corzine rule”, after MF Global’s former CEO Jon Corzine.

Why is this stupid? Because it wasn’t a lack of rules that allowed Corzine to steal from customer accounts. It was a lack of ethics on the part of one person. Corzine stole the money to margin bad trades he made through his MF account. He invested in European bonds, chasing yield and seeking to make big proprietary profits for MF Global. Their earnings were under huge pressure because the operations of the company weren’t particularly efficient, and the yields on US Treasury debt are so low that they weren’t able to earn a projected return on excess deposits.

... Jon Corzine stole from his customers. Until Corzine is put on trial in a court of law, no one will be able to get to the truth. He is being protected by the party in charge. The political waters are so virulent that they don’t want to see him tried. The event happened last October. Surely there is enough information available to convene a grand jury and begin indicting people. The public is being played. We are schmucks....

Customer funds are supposed to be segregated and protected.  But you should not need a rule to stop the theft of customer funds anymore than you need another rule to stop a bank from stealing customer deposits.  It should be considered theft or embezzlement.  Meanwhile Corzine continues to bundle campaign funds for Obama.  do you think that might have something to do with why he has not been charged?   It is a legitimate question.