My Wall Street Guy: Changing How Washington Works One Crony At A Time

12/13/11

Timeline
October 31st: Jon Corzines Wall Street Firm, MF Global, Filed For Bankruptcy. Broker-dealer MF Global, headed by former New Jersey governor and Goldman Sachs chairman John Corzine, has filed for bankruptcy protection, apparently because of holdings of European debt. (Broker-Dealer MF Global Files For Bankruptcy,
USA Today, 10/31/11)

The Eighth Largest Bankruptcy In US History Has Shaken Faith In The Markets. The case -the eighth-largest bankruptcy in U.S. history -- has shaken faith in the markets and put business on hold for many owners of the roughly 38,000 securities and commodities trading accounts at the firm, from big-city traders to heartland farmers. (James OToole, The MF Global Money Chase, CNN Money, 12/6/11)

November 2nd: Jon Corzine, One Of Obamas Leading Wall Street Fundraisers, Is Now The Center Of An FBI Investigation. Jon Corzine, now the center of an FBI investigation into the handling of hundreds of millions of dollars invested in his securities firm, was one of the leading Wall Street fundraisers for President Obamas campaign and suggested to investors that he might take a top administration post if the president were re-elected. (Michael Isikoff, Corzine, Top Obama Fundraiser, Under FBI Investigation, MSNBC, 11/2/11) November 4th: Corzine Resigned From MF Global And Said He Would Not Seek His $12 Million Severance. Jon S. Corzine has resigned from his posts at the embattled brokerage firm MF Global, the company announced on Friday. Mr. Corzine, the firms chairman and chief executive, will not seek his $12 million severance from MF Global, which filed for bankruptcy on Monday, according to the companys statement. (Ben Protess And Kevin Roose, Corzine Resigns From MF Global, The New
York Times Dealbook, 11/4/11)

Days After The Bankruptcy Filing, Customers Of MF Global Received Bounced Checks. With the mystery of the missing $600 million in customer funds at MF Global Financial still unresolved, a lot of customers of the failed futures firm are starting to complain about getting bounced checks. (Matthew Goldstein,
MF Global And The Rubber Check, Reuters, 11/5/11)

MF Global Mailed Checks Instead Of Wiring Money To Customers Requesting Their Money Back As MF Global Went Bankrupt. It appears that 10 days ago, with speculation swirling that the Jon Corzine-led firm would soon file for bankruptcy, a good number of customers started to put in requests to pull their money from the New York-based outfit. But instead of simply wiring that money back to their customers, it seems MF Global tried to buy some time for itself by sending that money back via snail mail in the form of an old-fashioned check. (Matthew Goldstein, MF Global And The Rubber
Check, Reuters, 11/5/11)

By The Time Customers Started Depositing Those Checks, They Were Rejected As Having Insufficient Funds. Those checks cut by the folks at MF Global began arriving in customer mailboxes this week, several days after the firm filed for bankruptcy on Oct. 31 in New York federal court. And by the time customers started depositing those checks, they were rejected as having insufficient funds. (Matthew Goldstein, MF Global And The Rubber Check, Reuters, 11/5/11) 2
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My Wall Street Guy: Changing How Washington Works One Crony At A Time

12/13/11

Over A Month Later, Investigators Are Still Trying To Determine What Happened In MF Globals Final Days
CFTC Commissioner Says Corzines Firms Books Are A Disaster. Were Trying To Figure Out What Numbers Are The Real Numbers. Their books are a disaster, Scott O'Malia, a commissioner at the Commodity Futures Trading Commission, one of the regulators leading a hunt that has stretched 10 days so far, said in an interview. We're trying to figure out what numbers are the real numbers. (Scott Patterson And Aaron Lucchetti, Inside The Hunt For MF Global Cash, The Wall Street Journal,
11/11/11)

Routine Financial Information Took Hours To Produce When It Should Be Accessible Instantly. An executive at another company that considered making a bid for parts of MF Global as it was going downhill said officials at his firm couldn't get a good sense of what was on the balance sheet. Routine information about assets and positions on MF Global's books took hours to produce, the executive said. Such information should be accessible instantly, he added. (Scott Patterson And Aaron
Lucchetti, Inside The Hunt For MF Global Cash, The Wall Street Journal, 11/11/11)

CFTC Commissioner Says Corzines Firm Havent Been Cooperative. CFTC Commissioner Bart Chilton disputed how much help regulators are getting from MF Global. Efforts to get information from the firm since the bankruptcy filing have been difficult and disappointing, he said. I think they haven't been cooperative, Mr. Chilton added in an interview. (Scott Patterson And Aaron Lucchetti, Inside The Hunt For MF Global Cash, The Wall
Street Journal, 11/11/11)

He Compared Efforts To Locate The Missing Money To A Magical Mystery Tour. (Scott Patterson
And Aaron Lucchetti, Inside The Hunt For MF Global Cash, The Wall Street Journal, 11/11/11)

Former New Jersey Governor Jon Corzines Former Brokerage Firm Was Engaged In Activity That Was Either Nefarious Or Illegal, Said A U.S. Futures Regulator On Tuesday. (Tim Mak, Regulator: Corzine Firm
Nefarious, Politico, 11/15/11)

Bart Chilton, CFTC Commissioner: The money should be there, its not. That money should be sacrosanct. Its really troubling. (Tim Mak, Regulator: Corzine Firm Nefarious, Politico, 11/15/11)

Failing Its Employees

Former Employees Are Suing Jon Corzine And Other MF Global Executives For Lying About The Companys Finances, And Encouraging Workers To Put Their Retirement Savings Into Company Stock That Later Plummeted. Two former employees of failed brokerage MF Global have sued its top executives and directors, including ex-CEO Jon Corzine, the former governor and senator from New Jersey. 3
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12/13/11

The two employees say the executives lied about MF Globals finances and encouraged workers to put their retirement savings into company stock that later plummeted. (2 Former MF Global Employees Sue Corzine, Other Executives; Say
They Made False Statements, The Associated Press, 12/5/11)

In 2010, MF Global Cut Employee Take-Home Pay And Put The Difference In Company Stock Which Is Now Almost Worthless. Early last year, MF Global floor broker Todd Thielmann received a notice in the mail that his take-home pay would be cut by 10%, with the money diverted to a fund for employees to own restricted stock in the firm. The timing couldn't have been worse. Less than two years later, the stock is almost worthless. Mr. Thielmann, who traded grain futures and options in Chicago, was one of 1,121 MF Global employees who were required to participate in the company's revised compensation policy, starting in February 2010. (Christian Berthelsen, MF Global Staff Bitten By Pay Plan, The Wall Street Journal, 12/2/11)

The Pay-Policy Changes Went Into Effect A Month Before Mr. Corzine Joined The Company, But He Appeared To Embrace Them. (Christian Berthelsen, MF Global Staff Bitten By Pay Plan, The Wall Street Journal,
12/2/11)

The Change In Pay Structure Saved MF Global $58 Million. By getting employees to receive a portion of their income in stock, the company saved nearly $58 million on cash compensation over its last two fiscal years, according to its annual financial statements. (Christian Berthelsen, MF Global Staff Bitten By Pay Plan, The Wall Street Journal,
12/2/11)

After The Bankruptcy Filing, MF Global Employees Lost $113.5 Million. At the time of the bankruptcy filing, 15.9 million employee shares were tied up in the program and, while the revised policy was in effect, the shares traded at an average price of $7.27. With shares now trading around 13 cents, that translates to an estimated collective loss of $113.5 million. (Christian Berthelsen, MF Global Staff Bitten By Pay Plan, The Wall Street Journal,
12/2/11)

Failing Its Customers

The $5.4 Billion In Total Customers' Cash Wasn't All Segregated, As It Should Have Been. (Bill Rochelle,
MF Global, Lehman, AMR, Solyndra, L.A. Dodgers: Bankruptcy, Bloomberg, 11/1/11)

Federal Regulators Are Investigating Whether MF Global, As Its Financial Condition Worsened, Tapped Client Funds That Were Supposed To Be Kept Safe In Strictly Segregated Accounts. (Steve
Karnowski, Shock Waves From MF Global Collapse Felt On Farms, The Associated Press, 12/4/11)

They're Also Trying To Determine What Became Of The Money It's Not Clear If The Cash Is Parked Somewhere Or If It's Gone. (Steve Karnowski, Shock Waves From MF Global Collapse Felt On Farms, The Associated
Press, 12/4/11)

Up To $1.2 Billion Is Missing From Customers Of Jon Corzines Firm. The court-appointed trustee overseeing MF Global's bankruptcy says up to $1.2 billion is missing from customer accounts, double what the firm had reported to regulators last month. (Marcy Gordon, MF Global Trustee Says $1.2B Or More Missing, The Associated Press,
11/21/11)

If The Money Was Accidentally Put In The Wrong Account, It Would Already Have Been Discovered. If this had been simply an accident where the money had been put in a wrong account, that should have been discovered by now, said Ed Ketz, an accounting professor at Penn State University. (James OToole, The MF
Global Money Chase, CNN Money, 12/6/11)

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My Wall Street Guy: Changing How Washington Works One Crony At A Time

12/13/11

Which Means Either MF Global Had Extremely Poor Accounting Controls Or Unlawfully Appropriated The Money. He said that leaves two possibilities: Either MF Global had extremely poor accounting controls and is unable to track down the money, or the funds were unlawfully appropriated.
(James OToole, The MF Global Money Chase, CNN Money, 12/6/11)

In The Latter Scenario, Staff From MF Global Could Potentially Face Criminal Charges, And The FBI Is Now Investigating The Case. (James OToole, The MF Global Money Chase, CNN Money, 12/6/11)

The Money May Be Gone Forever If MF Global Used It To Cover Losses On Its Own Risky Bets. It is unclear what MF Global did with this money or whether it can be recovered. Investigators are checking whether MF Global used some of the cash to pay off its own debts, which means the money could be sitting in an account at another firm. But if the firm used it to cover losses on some of its risky bets, the money may be gone forever.
(Ben Protess, MF Global Is Said To Have Used Customer Cash Improperly, The New York Times, 11/17/11)

The Longer It Goes Without Anyone Finding The Money, The Odds Go Up That The Money Is Out The Door, Said Craig Pirrong, A Finance Professor At The University Of Houston. (Scott Patterson And Aaron Lucchetti, Inside
The Hunt For MF Global Cash, The Wall Street Journal, 11/11/11)

Sending Ripples Across America

The Havoc Wreaked By The Failure Of Jon Corzines MF Global Is Rippling Through The Farm Belt. The havoc wreaked by MF Global's bankruptcy filing has been felt not just by Wall Street investors and traders, but also by wheat and corn growers, cattle ranchers and pig farmers. Dotting the farm belt, many who used the commodities market to protect against price swings are finding their money locked up and their hedges unwound due to the firm's downfall. (Jerry A Dicolo And Dan Strumpf, MF Global Collapse Felt In Farm Country, The Wall
Street Journal, 12/7/11)

Farmers, Ranchers And Rural Businesses Were The Hardest Hit By MF Globals Failure And The Investigations Following The Bankruptcy. Farmers, ranchers and rural businesses such as grain elevators and feed mills were among the hardest hit when they were cut off from the cash in their hedging accounts at MF Global, which sought bankruptcy protection in October after making a disastrous bet on European government debt. The number of people harmed and the extent of their losses isn't clear yet. (Steve Karnowski, Shock Waves From MF Global Collapse Felt On Farms, The Associated Press, 12/4/11) MF Global's Demise Upended A System That Had Quickly Resolved Most Earlier Brokerage Failures. Capitol Hill has been flooded by calls and letters from farmers, farm-industry groups and others demanding help, as well as answers on why MF Global's demise upended a system that had quickly resolved most earlier

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12/13/11

brokerage failures. (Jerry A Dicolo And Dan Strumpf, MF Global Collapse Felt In Farm Country, The Wall Street Journal, 12/7/11) MF Globals Fallout Has Left Some Farmers In A Cash Crunch. In the latest sign of how MF Global's failure is continuing to cascade across the commodity industry, Tofteland and other farmers who have yet to recover more than a third of their money from the bankrupt broker now find themselves in a cash crunch that risks rippling far beyond the futures market. (Tom Polansek, MF Global Fallout Delays U.S. Farm Seed, Land Deals, Reuters,
12/6/11)

The Failure Had Immediate Effects On Farmers Financial Positions. The bankruptcy had an immediate impact on farmers' abilities to hedge their crops at grain exchanges. Many had to liquidate positions or put up additional cash to meet margin calls after their accounts were transferred from MF Global to other brokerages. (Tom Polansek, MF Global Fallout Delays U.S. Farm Seed, Land Deals, Reuters, 12/6/11) Some Farmers Have Had To Postpone Purchases Of Land Or Equipment. (Tom Polansek, MF Global
Fallout Delays U.S. Farm Seed, Land Deals, Reuters, 12/6/11)

Now, The Collapse Has Begun To Impact Farm Decisions That Can Directly Affect Output. (Tom Polansek,
MF Global Fallout Delays U.S. Farm Seed, Land Deals, Reuters, 12/6/11)

Farmers Worry The Cost Of Doing Business Could Go Up Permanently Due To The Increased Risk Of Keeping Money In Segregated Accounts, Making It More Expensive To Produce Crops.
(Tom Polansek, MF Global Fallout Delays U.S. Farm Seed, Land Deals, Reuters, 12/6/11)

More Than 100 Minnesota Farmers Have Had Their Money Frozen Due To MF Globals Collapse. Magnuson is among more than 100 Minnesota farmers estimated to have assets frozen as a result of MF Global's bankruptcy filing and an estimated $1.2 billion in missing customer funds. (Jim Spencer, MF Global Woes
Ripple Into Heartland, Star Tribune, 12/1/11)

Farmers And Grain Storage Businesses In Minnesota Find Themselves With The Potential Of Losing Millions. Bob Zelenka, executive director of the Minnesota Grain and Feed Association, estimated that between 25 and 30 grain storage facilities and nearly 100 producers in Minnesota alone have accounts through MF Global that are now inaccessible. There's a number of businesses, whether it's a producer or a [grain] elevator, whose futures really are at stake here, Zelenka said. They did everything right, but all of the sudden, they find themselves with the potential of losing millions. (James OToole, Farmers Caught Up In MF Global Failure, CNN Money, 11/23/11) They Thought Their Money Was Safe In Segregated Accounts. When MF Global declared bankruptcy, farmers like Magnuson and Dean Tofteland, who raises pigs and grows corn and soybeans in Luverne, Minn., thought they were safe. They had been told their money was held in segregated accounts to be invested only in their best interest. Unfortunately, this didn't protect Magnuson, Tofteland or thousands of farmers and ranchers nationwide from MF Global's suspect investments. (Jim Spencer, MF Global Woes Ripple Into Heartland, Star Tribune, 12/1/11)

Over 100 Iowans Are Still Waiting For Their Money. Ries, whose family still operates farms in the area, said he sent a letter to more than 100 aggrieved clients who have been waiting for their money since MF Global filed for bankruptcy. (Lauren Tara Lacapra, Iowa Farmers Feel Ripples Of MF Global Bankruptcy, Reuters, 11/4/11)

The Local Broker Was Unable To Get Concrete Information From MF Global On When The Funds Would Be Available. Reis said calls to MF Global offices have mostly been met by busy 6
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My Wall Street Guy: Changing How Washington Works One Crony At A Time

12/13/11

signals. When he reached representatives on the phone, they were unable to provide him with any concrete information on when his clients' money would be available. (Lauren Tara Lacapra, Iowa Farmers Feel
Ripples Of MF Global Bankruptcy, Reuters, 11/4/11)

Hog Producers In Minnesota And Wisconsin Could Have Lost Over $40 Million. Hog producers who rode out tough years in 2008 and 2009 came to rely heavily on risk management tools and were starting to lock in some pretty good profits before MF Global collapsed, said Mark Greenwood, a senior vice president and swine expert at AgStar Financial Services, which serves farmers mainly in Minnesota and Wisconsin. Greenwood estimates that about half of the hog producers his company serves have been affected, with combined losses probably more than $40 million. The 300 to 400 clients have individual losses of $50,000 to over $1 million, he said. (Steve Karnowski, Shock Waves From MF Global Collapse Felt On Farms, The Associated Press, 12/4/11)

Why It Failed
MF Global Was Brought Down Primarily By Billions Of Dollars In Investments In Bonds From Troubled European Nations, A Move That Was Reportedly Pushed By Corzine. (Peter Schroeder, The Fall Of Key Man Corzine, The
Hill, 12/6/11)

Corzine Bet $11.5 Billion On European Debt, But Didnt Disclose All Of It To Investors. Jon Corzine bet $11.5 billion on European sovereign debt in his bid to rebuild profits at MF Global Holdings Ltd., almost twice the net amount disclosed to investors, and relied on short-term hedges that left the firm exposed to larger losses if they couldnt be rolled over. (Miles Weiss, Cristina Alesci and Matt Leising, Corzine
Pushed Bet On Europe Debt To $11.5B, Bloomberg, 11/29/11)

Michael Roseman, The Chief Risk Officer, Said MF Global Couldnt Withstand The Risks Of Its Position In European Bonds. The executive, Michael Roseman, whose title was chief risk officer, also expressed concerns directly to Mr. Corzine in meetings of just the two men and with other people present, people familiar with the situation said. Mr. Roseman contended MF Global didn't have enough spare cash to withstand the risks of its position in bonds of Italy, Spain, Portugal, Ireland and Belgium. He also presented gloomy hypothetical scenarios of what could happen if MF Global's credit rating was downgraded because of the exposure. (Aaron Lucchetti and Julie Steinberg, Corzine Rebuffed Internal Warnings On Risks, The Wall Street Journal, 12/6/11)

Corzine Brushed Aside The Warnings And Threatened To Quit If His Judgment Was Questioned. The CEO suggested to board members earlier this year that he might leave the company if they didn't trust his judgment about the bet, according to people familiar with the matter. (Aaron Lucchetti and Julie Steinberg, Corzine Rebuffed Internal Warnings On Risks, The Wall Street Journal, 12/6/11)

MF Global Bought European Sovereign Debt Financed Through Repurchase Agreements. Starting in late 2010, MF Global began to accumulate short-term sovereign debt of countries like Italy, Spain and Portugal. MF Global financed these purchases through complex transactions known as repurchase agreements. (Azam Ahmed And Ben Protess, As Regulators Pressed Changes, Corzine Pushed Back, And Won, The New York Times Dealbook, 11/3/11)

Lehman Brothers Used Another Little-Known Repurchase Agreement To Obscure Billions Of Dollars In Losses. In September 2008, Lehman collapsed amid a global financial crisis. It later 7
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My Wall Street Guy: Changing How Washington Works One Crony At A Time

12/13/11

was disclosed that Lehmans use of another little-known repurchase agreement allowed it to temporarily obscure billions of dollars in losses. (Azam Ahmed And Ben Protess, As Regulators Pressed Changes, Corzine
Pushed Back, And Won, The New York Times Dealbook, 11/3/11)

Battles With Regulators

Last Week, The CFTC Approved The MF Global Rule Which Would Bar Wall Street From Using Client Funds To Buy Foreign Sovereign Debt. Federal regulators approved tougher constraints on Wall Street risk-taking on Monday, adopting the MF Global rule, named after the collapsed brokerage firm that is believed to have improperly used hundreds of millions of dollars of customer money. The new rule will limit how the brokerage industry can invest customer money, largely barring firms from using client funds to buy foreign sovereign debt. It also prevents a complex transaction that allowed MF Global, in essence, to borrow money from its own customers. (Ben Protess, Regulator Approves MF Global Rule, The New York Times Dealbook, 12/5/11)

MF Global Violated That Principle In Its Final Chaotic Days, Tapping Its Segregated Client Accounts To Meet Its Own Financial Obligations, People Briefed On The Matter Have Said. (Ben
Protess, Regulator Approves MF Global Rule, The New York Times Dealbook, 12/5/11)

The CFTC Proposed The Rule In October 2010, But Met A Powerful Roadblock In Mr. Corzine. Mr. Genslers agency initially proposed the crackdown in October 2010, and neared a vote on the plan this summer. But at the time, the agency met a powerful roadblock in Mr. Corzine, former Democratic governor of New Jersey. (Ben Protess, Regulator Approves MF Global Rule, The New York Times Dealbook, 12/5/11) Corzine Launched An Aggressive Lobbying Campaign And Delayed The Rule From Taking Effect. Mr. Corzines efforts culminated on July 20, as MF Global executives were on four different calls with the agencys staff. Mr. Corzine personally participated in two of those calls. Ultimately, the aggressive lobbying campaign helped delay the proposal. (Ben
Protess, Regulator Approves MF Global Rule, The New York Times Dealbook, 12/5/11)

Corzine Lobbied Personally On MF Globals Behalf Against The Rule. While other financial firms employed teams of lobbyists to fight the new regulation, MF Globals chief executive in meetings over the last year personally pressed regulators to halt their plans. (Azam Ahmed And Ben Protess, As Regulators
Pressed Changes, Corzine Pushed Back, And Won, The New York Times Dealbook, 11/3/11)

Corzine Argued That The Rule Would Be Aimed At Fixing Something That Is Not Broken. The rules were unnecessary, Mr. Corzine said, because federal laws already prevented brokerage firms from mixing client money with company funds. In a letter, MF Global insisted to regulators that they were trying to fix something that is not broken. (Ben Protess, Regulator Approves MF Global Rule, The New York
Times Dealbook, 12/5/11)

Corzine Was Battling With A Close Friend

'MF Global Also Shows How This New Era Of Regulatory Power Puts A Premium On Political Connections. (Editorial, Mr. Corzine And His Regulators, The Wall Street Journal, 12/1/11) 8
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The CFTCs Chairman Is Gary Gensler, Who Worked For Corzine When They Worked At Goldman Sachs. Leading the governments effort to curtail these arcane practices was Gary Gensler, the chairman of C.F.T.C., who had worked for Mr. Corzine at Goldman Sachs. Mr. Gensler pushed for the proposed change in October 2010, and planned to bring it to a vote this summer. (Azam Ahmed And Ben Protess,
As Regulators Pressed Changes, Corzine Pushed Back, And Won, The New York Times Dealbook, 11/3/11)

Both Men Are Active Democrats, And Served On Financial Panels Together Recently. (Azam Ahmed And Ben
Protess, As Regulators Pressed Changes, Corzine Pushed Back, And Won, The New York Times Dealbook, 11/3/11)

Speaking At A Princeton University Conference Last Year On The Day Before Corzine's Wedding, Gensler Described Working With Corzine As A Privilege. (Daniel Wagner, MF Globals Regulator Has Ties To Companys Leader, The Associated Press, 11/3/11)

When Corzine Ran For New Jersey Governor, Gary Gensler Gave $10,000 To The State Democratic Party, Which Was Trying To Get Corzine Elected. (Daniel Wagner, MF Globals Regulator Has Ties To Companys Leader, The
Associated Press, 11/3/11)

Gensler Has Given Over $102,000 Since The 2008 Cycle, All To Democrats. (Center For Responsive Politics, Open
Secrets, Accessed 11/4/11)

Including The Legal Maximum, $4,600, To Obama In 2008. (Center For Responsive Politics, Open Secrets, Accessed
11/4/11)

Genslers Long And Deep Ties To Corzine Had Experts Believing He Has A Conflict Of Interest. But Gensler's long and deep ties to Corzine pose an apparent conflict of interest that could taint the probe's findings, experts say. Some say he should remove himself from the case. (Daniel Wagner, MF Globals Regulator Has Ties To
Companys Leader, The Associated Press, 11/3/11)

Gensler Recused Himself From Investigating Corzines Firm. A regulator says he withdrew from an investigation of Jon Corzine's collapsed securities firm to avoid being a distraction. Gary Gensler, chairman of the Commodity Futures Trading Commission, said Monday that the CFTC has "excellent career staff" to handle such cases. (Eileen AJj Connelly And Daniel Wagner, Geensler Explains Recusal From Mf Global Probe, The
Associated Press, 11/7/11)

A Former Corzine Staffer, Steven Adamske, Currently Serves As The CFTC Public Affairs Director.
(Nancy Watsman, Corzines MF Global Pushed Regulators To Use Client Funds, The Huffington Post, 11/4/11)

Congressional Hearings
December 8: Jon Corzine Testified Before The House Of Representatives, Saying: I Simply Do Not Know Where The Money Is, Or Why The Accounts Have Not Been Reconciled To Date.(Jon S. Corzine,
Committee On Agriculture, U.S. House Of Representatives, Testimony, 12/8/11)

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Faced With A Barrage Of Questions, Corzine Sometimes Hesitated In His Answers But Didn't Invoke His 5th Amendment Privilege Against Self-Incrimination. (Kim Geiger, Jon Corzine Tells House Panel Of 'Stunned Disbelief,
Los Angeles Times, 12/8/11)

Corzine Was Repetitive In Saying He Never Intended To Break Any Rules, But He Could Not Say It Hadn't Happened. Responding to repeated questioning from frustrated lawmakers, Corzine said he had no intention to ever authorize the transfer of segregated monies, but he could not say it hadn't happened.
(Kim Geiger, Jon Corzine Tells House Panel Of 'Stunned Disbelief, Los Angeles Times, 12/8/11)

Gillian Tett: Isn't that a great quote? I simply do not know where the money is. At this point he's presenting himself as an idiot or a criminal in some way, and he's gone for the idiot choice. (MSNBCs
Morning Joe, 12/9/11)

MSNBCs Willie Geist: It just defies belief, though, that the CEO doesnt know where 1.2 billion dollars is. (MSNBCs Morning Joe,
12/9/11)

Three Congressional Panels Have Subpoenaed Jon Corzine. A third Congressional panel has unanimously agreed to subpoena Jon Corzine to testify about the bankruptcy of MF Global. (Peter Schroeder, Committee Issues Third Subpoena For Corzine, The Hill, 12/7/11) This Isnt The Usual Way A Former U.S. Senator Returns To Capitol Hill -- On The Receiving End Of A Subpoena. (Robert Schmidt, Once-Ascendant Corzine Returns To Congress As Suspect In MF Global Failure, Bloomberg,
12/8/11)

Corzine Is The First Former Member Of Congress Forced To Testify Before His Peers Since 1908. Corzine, a Democrat, represented New Jersey in the Senate from 2001 to 2005. He later served as the states governor. This would be the first time a member of Congress has been forced to testify before his former peers since 1908. (Senate Panel Votes To Subpoena Corzine To Testify On Role Leading Failed MF Global, The Associated Press, 12/6/11)

Obamas Wall Street Guy

President Obama: Corzine Is Our Wall Street Guy. The rollout also provided a showcase for Corzine, the former Goldman Sachs CEO whom Obama referred to as our Wall Street guy at a meeting of Democratic governors in Chicago on Friday. (Claire Heininger, Corzine Profile Rises In Obama Camp, The Star-Ledger (NJ), 6/23/08)

Obama: First of all, I'm going to have a lot to say about this guy, but I just want everybody to know that one of my earliest supporters, somebody who had faith and confidence in me before I was a United States senator was the man standing next to me right here -- Jon Corzine. (President Barack Obama,
Remarks By The President At Luncheon Fundraiser With Governor Jon Corzine, Holmdel, New Jersey, 7/16/09)

Obama: I'm among a lot of friends and I, first of all, obviously want to thank Jon and Sharon for hosting us in this extraordinary venue. These guys have been just great friends from the start. Some of you know that Jon was a big supporter of mine in my first U.S. Senate race when nobody could pronounce my name. (President Barack Obama, Remarks By The President At A DNC Event, New York, New York, 4/28/11)

In The Early Days Of The Obama Administration, Biden Literally Called Jon Corzine For Advice On The Economy Because He Knew About The Economy And We Trusted His Judgment. I literally 10
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picked up the phone and called Jon Corzine and said Jon, what do you think we should do, Biden said. The reason we called Jon is that we knew that he knew about the economy, about world markets, how we had to respond, unlike almost anyone we knew. It was because he had been in the pit -- because he had been in the furnace. And we trusted his judgment. (Conor Friedersdorf, Obamas Team Relied On Jon Corzine For Economic Advice, The Atlantic,
11/14/11)

Watch Biden Say The Obama Team Relied On Corzine For Economic Advice

Corzine Helped Craft The Stimulus

President Obama: Jon Corzine wasn't just the first governor to pass an economic recovery plan for his state; he was an ally with the Obama administration in helping us develop a national recovery plan. (President
Obama, Remarks By The President At New Jersey Rally For Governor Jon Corzine, Holmdel, NJ, 7/16/09)

Watch Obamas Comments Here

Vice President Biden: Its not coincidental that thats what the Recovery Act is. Jon Corzine helped craft the Recovery Act. Its not coincidental that the things he did here turned out to be the exact same things the recovery act has because way back in the transition period before we were sworn in, when Barack Obama and I were literally sitting at a desk in a high rise in Chicago beginning to plan how we would try to get this economy out of a ditch, literally the first guy I called was Jon Corzine. Not a joke. Not a joke. Because first of all, hes the smartest guy I know in terms of the economy and on finance. (Vice President Biden, Speech In New Jersey,
5/7/11)

Biden: If you need any evidence of whether or not what Im telling you is accurate, look at the recovery efforts of New Jersey and you can mirror them, they just fall right on top of what were doing. And so Jon, thank you, thank you, thank you. (Vice President Biden, Speech In New Jersey, 5/7/11) Watch Biden Say That Corzine Helped Craft The Stimulus

And Was Possibly Obamas Next Pick For Treasury Secretary

Just Months Ago Corzine, A Democrat, Was Seen As A Possible Successor To Treasury Secretary Timothy Geithner. (Peter Schroeder, The Fall Of Key Man Corzine, The Hill, 12/6/11) 11
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My Wall Street Guy: Changing How Washington Works One Crony At A Time

12/13/11

Corzines Firm Issued Highly Unusual Securities Which Promised To Pay A Higher Interest Rates If Corzine Was Appointed And Confirmed To A Federal Position By The President Of The United States. Just a few months after that event, Corzines firm, MF Global, surprised many Wall Street investors by issuing highly unusual securities notes that appeared to highlight Corzines close relationship with the White House: The notes suggested that the former New Jersey governor might be in line for a top administration post should the president get re-elected. The notes promised to pay an extra 1% in interest rates in the event of the departure of Mr. Corzine as our full time chief executive officer due to his appointment to a federal position by the President of the United States and his confirmationby the United States Senate prior to July 1, 2013. (Michael Isikoff, Corzine, Top Obama Fundraiser, Under FBI Investigation, MSNBC, 11/2/11)

Obama Campaigns Wall Street Liaison

Jon Corzine Has Bundled Over $500,000 For Obamas Reelection Campaign. (Center For Responsive Politics,
Opensecrets.Org, Accessed 10/31/11)

Obamas Campaign Says It Would Return Corzines Donations If He Is Charged With Wrongdoing. President Barack Obama's re-election campaign would return the donations made by embattled MF Global chief Jon Corzine if he were charged with any wrongdoing, a campaign official said on Wednesday.
(Kim Dixon And David Ingram, Obama Campaign May Return From MF Global Corzine, Reuters, 11/2/11)

But They Say They Will Only Return Corzines Individual Donations, Not All Bundled Contributions. An Obama campaign official, speaking on condition of anonymity, said the donations received from Corzine as an individual would be returned if civil or criminal charges are brought against him. (Kim Dixon
And David Ingram, Obama Campaign May Return From MF Global Corzine, Reuters, 11/2/11)

Corzine Has Given $5,000, The Legal Maximum, To Obamas Campaign. (Center For Responsive Politics,
opensecrets.org, Accessed 11/3/11)

Corzine Has Also Given $30,800 To The DNC. (Center For Responsive Politics, opensecrets.org, Accessed 11/3/11) Corzine Has Also Donated $15,000 To The Democratic Congressional Campaign Committee This Year And $25,000 To Senate Democrats In 2010, According To Regulatory Filings. (Kim
Dixon And David Ingram, Obama Campaign May Return From MF Global Corzine, Reuters, 11/2/11)

Corzine Played A Central Role In Obamas Wall Street Fundraising Efforts. His new legal troubles, sparked by the bankruptcy filing of his investment firm, MF Global, could complicate the presidents efforts to raise money from the financial community given Corzines central role in those efforts. (Michael Isikoff, Corzine,
Top Obama Fundraiser, Under FBI Investigation, MSNBC, 11/2/11)

Corzine Has Already Held A High-End Fundraiser And Organized A Secret Meet-And-Greet Between Finance Executives And Obamas New Chief Of Staff. (Peter Stone, Elizabeth Lucas, John Aloysius Farrell, Paul Abowd and Rachael
Marcus, Obama Campaign Reports More Than 350 Big Bundlers, Including Solyndra Figures, Iwatch News, 10/14/11)

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My Wall Street Guy: Changing How Washington Works One Crony At A Time

12/13/11

Corzine Co-Hosted A Wall Street Fundraiser For Obama In April. President Obama's first New York event since he declared his reelection will be at the home of former New Jersey Gov. Jon Corzine, the former Goldman Sachs financier who will host a high-dollar, small dinner, an invitation to the event shows. Tickets to the event, which sources said Corzine is co-hosting with another financier, longtime Obama backer Orin Kramer and his wife, cost $35,800 per person. (Maggie Haberman, Obama Fundraiser At Corzine Home, Politico, 4/5/11)

The Fundraiser Was Part Of Obamas Efforts To Soothe Frayed Relations With Wall Street. The choice of Corzine's home is notable, given his ties to the financial sector. The White House has made efforts in recent months to soothe frayed relations with the business community, after an election cycle during which some donors, unhappy with the push for Wall Street reform, claimed to be sitting on their hands. (Maggie Haberman, Obama Fundraiser At Corzine Home, Politico, 4/5/11)

Jon Corzine Attended Obamas Blue Room Meeting With Wall Street Donors. (Josh Gerstein, All At DNC Blue Room
Meeting With Obama Were Donors, Politicos Under The Radar, 6/26/11)

Just Before Announcing For Reelection, Obama Brought Two Dozen Wall Street Executives And Longtime Donors To The White House For A Blue Room Meeting. A few weeks before announcing his re-election campaign, President Obama convened two dozen Wall Street executives, many of them longtime donors, in the White Houses Blue Room. (Nicholas Confessore, Obama Seeks To Win Back Wall
St. Cash, The New York Times, 6/12/11)

Obama Opened The Floor For The Donors To Talk To Him On Hot Issues. The guests were asked for their thoughts on how to speed the economic recovery, then the president opened the floor for over an hour on hot issues like hedge fund regulation and the deficit. (Nicholas Confessore, Obama Seeks To
Win Back Wall St. Cash, The New York Times, 6/12/11)

The Meeting Was Organized By The Democratic National Committee To Try To Win Back Wall Street, One Of Obamas Main Sources Of Campaign Cash. The event, organized by the Democratic National Committee, kicked off an aggressive push by Mr. Obama to win back the allegiance of one of his most vital sources of campaign cash in part by trying to convince Wall Street that his policies, far from undercutting the investor class, have helped bring banks and financial markets back to health. (Nicholas Confessore, Obama Seeks To Win Back Wall St. Cash, The New York Times, 6/12/11)

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