Tuesday, March 13, 2012

CEO's crimes are not really crimes. We call them "accidents"


An interesting development: According to Joe Nocera, from the New York Times, it seems that MF Global is getting "a free pass." He writes:
By now, it has been well established that Corzine’s former firm, MF Global, committed the sin of sins for a broker-dealer. In late October, during the final, desperate days before it entered bankruptcy proceedings, its executives took money from segregated customer accounts — money that belonged not to MF Global but to the farmers and commodities traders that were its clients — and used it to prop up its rapidly collapsing business. Nor was this petty cash: of the $6.9 billion in customer assets that MF Global held, a stunning $1.6 billion is missing. There is virtually no chance that the full amount will ever be recovered.
(...) These executives committed a crime. Virtually every knowing violation of the Commodities Exchange Act is a crime, but taking money from segregated customer accounts is at the top of the list. And for good reason. Customer money is supposed to be sacrosanct. If a broker-dealer goes bankrupt, the segregated accounts are supposed to remain safe, a little like the way bank deposits remain protected if a bank goes under. Indeed, customers need to be able to trust the fact that their money is segregated and protected at all times. Otherwise, the markets can’t function. 
It turns that prosecutors are having trouble putting together a criminal case against anyone at MF Global. Now, federal prosecutors have expressed doubts that MF Global “intentionally misused customer money.” So, how do you miss $1.6 billion? An chaotic accident during the final days which caused the firm’s executives to tap into customer funds without realizing it.

Are you kidding???

This is a post for comment. It closes next Monday at 11pm.

16 comments:

  1. This has got to be a joke. I'm getting really tired of CEO's and other big time company owners getting away with serious crimes such as these. The American Government really needs to step up and stop this. Our Government is taking it to easy on companies going bankrupt as well. I believe that the government should only help out small time companies and business owners with bankruptcy and let the big time corporations and businesses take care of themselves. Since the 2008 housing crises. I've been seeing more and more big time companies go into bankruptcy and demand that the government bail them out. When this happens, corruption and theft can occur because the CEO's can lie and steal from their customers which MF Global is an example of. After the bankruptcy the companies could say that it was an accident and the government will bail them out and nothing will happen to them. I think that our government system at the moment is a joke, and what we really should be doing is trying to get rid of 15+trillion dollar debt that we have.

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  2. It's just more of the same. I've become desensitized to news like this. It happens all the time. The banks play with our money and keep all the gains, and have nothing happen to them when they lose it all. This is the country we live in. For all the anger we can show, nothing gets done. The money stays in the pockets of the banksters, and they fund campaigns of politicians who will keep them out of jail and able to run these same scams over and over. If you’re rich in this country, you’re immune from prosecution. The growing gap between the rich and the poor will make sure it stays this way. We might as well draw up two sets of laws. One for those whose net worth is more than some 3rd world countries, and one for the rest of us.

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  3. Unfortunately CEO’s crimes will keep occurring unless the government decides to put an end to this situation. It’s really ironic how sometimes the justice is all over someone’s for minor violations of the law and when serious crimes occurs like MG Global the justice just vanished. I think the government must stand and punish these companies. MG Global deserves to be punished as any regular person would be in the same case. They committed crimes and took money from clients’ accounts missing $1.6 billion. If they would be prosecuted that would probably decrease the chance of these types of “accidents” in the future, and there would be some justice and respect for the people that suffered the consequences of their malpractices. It will also give some credibility to our justice system when it comes to company’s crimes, because until now I can say it is a joke. I think that if we have laws in our society it is to enforce them and abide them, so they must be abided by everyone without distinction of purchasing and financial power.

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  4. Brittany Ferguson
    March 18, 2012
    PHI2604
    Triff

    First off, this is another situation the government needs to deal with. CEO’s crimes are crimes no matter who they are. I honestly think this is ridiculous because they are humans just like everyone else. If they do something wrong that is against the law then they should be charged like everyone else. Just like if someone goes to jail for stealing something out a store, the CEO’s of companies should go to jail for stealing from others. I know that the government is dealing with a lot of situations but they need to be worrying about the most important problems right now. It’s sad that they have strings attached to the government to keep them out of trouble. Everyone should be treated equally because at the end of the day we all are humans. Just because CEO’s is in a higher position than others does not mean that they can commit a crime and get away with it. These government problems should wake people up and make them see that this is not a joke. These situations are getting out hand and need to be dealt with.

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  5. Meisel Vera
    Phi2604 mwf

    Crimes will be committed regardless if the government intervenes or not. Yes, action needs to be taken so less crimes are committed . Business is about taking risks and hoping it will work out , but unfortunetly sometimes it doesn't . But , there is no excuse to take peoples money that have trusted you with it. It is completely wrong how some people make the smallest mistake and get convicted. But , someone has been stealing money and somehow no one noticed.

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  6. If this keeps going, what will happen in the future ? The same exact crime. CEO's along with their companies should be responsible for their acts. Why should they extract 1.6 billions of customers money when it has nothing to with the catastrophic event that has fall upon the company ? The government should be involved in this case to actually come to a solution to figure out what actually happened and who is responsible. If this problem is not resolved, then all i can say is, " Welcome to America, where all your dreams become a reality while living a rich and comfortable life."

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  7. For some reason, it feels as though these big time companies are always getting a pass whenever they seem to be in major trouble and they never seem to get in trouble for any of their actions. Personally, I feel as though they are getting a free pass to get in trouble whenever they want and they expect no severe punishments to condemn their actions. From the outside,to a hard working citizen this looks like the big companies and CEO’s are untouchable and cannot be touched when they do something wrong. This needs to stop now, this company MF Global stole 1.6 billion dollars of peoples hard earned money and used it to save themselves from a mess they created and now apparently these people whose money was taken more than likely will never get it back. Unless the government steps in and interferes, they are basically sending a message to everyone saying that, as long as you are rich and powerful you are more important than everyone else.

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  8. Geraldine Flores
    MWF 11:00-11:50
    It is absolutely ridiculous that massive companies like MF are given free passes to commit crimes. How is it possible to misplace or lose 1.6 billion dollars? No one is thinking about MF customers because they were basically robbed and betrayed. They had trusted MF to protect and hold their money, and then all of the sudden; their money is nowhere to be found. And what is worst, is that that money won’t be found. If a robber broke into a stranger’s home, and stole their belongings, the court will find the robber guilty. Therefore, MF (the robber) broke in customers’ segregated bank accounts (the stranger’s home) without their consent or knowledge and should be accounted as guilty. Every crime should be punished. Situations like this basically portrays companies are above the law, and that shouldn’t be. MF must pay for their treachery in order for companies to see that they will be punished for their crimes.

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  9. Nayel Medina MWF 11-11:50AMMarch 19, 2012 at 5:19 PM

    The American government has to intervene and stop these companies from committing any more fraud to its investors. I don't understand how companies continue to get bailed out and backed by our government when there have been plenty of cases like MF Global’s, where millions and billions of dollars have gone missing. How can they say that there were no crimes committed when customer segregated money was taken. Investors trusted this company and their money is supposed to be secure if the company goes down just like customer’s bank deposits are secure if a bank goes under. I don't understand how $1.6 billion dollars can come up missing or as they claim been misused. I believe our government has to step in and stop things like this from happening if we ever want our economy to move forward. Without investors, these companies will never be up and running. If they keep misusing funds, investors will no longer put trust in companies like MF Global.

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  10. Michna Duval
    MWF 11:00-11:50

    This is part of the reason why the economy is getting low. The government cant let CEO's get away like this, how can the economy change when the government is covering up for huge profitable CEO's. My opinion on this is that I agree it's fairly wrong that MF Global is misusing people money in the wrong direction,people put their hard working money to save just in case they ever go broke they have back up into providing for themselves and family. Out of no where how can 1.6 billion dollars be missing not from the CEO'S account but from middle class citizens. The government isn't helping at all how could they agree that it was just an accident instead of a crime. I think honest investors should put a stop too it. Without letting people knowing what is going with there money this company is guilty and deserves to be shut down, and for the big time CEO's should be in prison serving time and paying all there customers each and last funds that they claim to borrow.For those segregated customers they have the right to fuse with anger need to get there money back, that's why some citizens are broke. This been going on years the government need to stop letting these executives take over people money. I think people who are a victim to this situation should stand up for their rights and address it publicly, because justice needs to be serve on this type of cases. If these executives get penalized for every crime that they did America wouldn't be in a deep hole position that they in today.The government acts like's nothing happened and the money is safe. Which is plain nasty the executives and government expects middle class and low class citizens to pull through from this.If this keeps going on people wouldn't know where to turn to for financial assistance,because they are afraid of losing their money to companies.

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  11. Laura Delgado
    MWF 11AM

    These people are far too powerful to be caught that easily. It takes a lot of effort to work up a case towards someone so high in rank and power such like the CEO's of MF Global. The system is also corrupt. Everyone has a selfish interest in particular cases like this one. Therefore, chances are that what ends up occurring is what behooves most involved in the case. There isn't a doubt that what they did is immoral. In fact, under no circumstance should they be allowed to take money from customer accounts and I'm sure they are well aware of that. Even if the justification is because it's an "Accident" those kinds of accidents should not be tolerated as it violates the Commodities Exchange Act.

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  12. Daniel Sanchez
    3-19-12
    PHI 2604 11:00-11:50 AM
    The most tragic thing that could happen in a free market capitalism system is when the very people in charge of securing our money have too much power. CEO's today seemed to have so much power in America that even stealing a billion dollars wouldn't put them in jail. It is unfortunate when even our government isn't capable of stopping these rich and powerful men from commiting such theft. It is critical for us as citizens to say that we do not stand for such corruption. There should be stricter regulations when it comes to CEOs of these companies.

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  13. LORIET MARTINEZ

    Before saying anything this situation of going on bankruptcy has became really popular nowadays here in the United States. This is a really serious problem that from my prospective the government should get control of as soon as possible. CEO’s crimes are crimes regardless who they are. I truthfully think this is ludicrous because CEO are people just like the rest of us. When we do something wrong that goes against the law we are seriously charged by the justice, so I think that it should be fair and consistent. For example, Just like if someone goes to jail for stealing things out from a Supermarket, the CEO’s of companies should go to jail for stealing from their clients. I am completely knowledgeable that the government is dealing with a lot of different situations simultaneously. However, they should give priority and think about the most important problems that are affecting right now. It is completely absurd that huge companies like MF are given free passes to commit crimes like this. Things like this are not accident; they are really serious crime. Because it is not possible that 1.6 million dollars were misplaced. Justice should be given to companies that have done things like this, so the rest of the other companies around the word see that there are laws punishing robbers like MF and stop doing it. MF should be seriously charged for that crime and pay back every single nickel that it stole from clients.

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  14. Estrella Alvarado
    MWF 11:11:50

    Clearly, not everything that is legal has moral value. Unfortunately, the US government often turns the blind eye to things such as injustice. People in power make "insignificant mistakes" such as this and we are all supposed to accept it and resign to the thought that we, the customers, do not have a voice when CEO's are to blame. Left with no other option, we are to become desensitized and also ignore what is right in front of us. Crime. They deserve to receive punishment and pay the consequences of they're wrongful actions, just like all other criminals. $1.6 billion missing is no accident. Just another sneaky robbery by delinquents in a suit.

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  15. Tanzania Fields
    MWF 11:00-11:50


    What has occurred is an immoral act done by CEO's who think they can practically get away with anything. It is clear that taking money that doesn't belong to you is stealing, and that is an obvious crime. How does 1.6 billion dollars of customer assets disappear accidentally? There should be consequences to their actions, something has to be done. This just isn't right nor is it fair. Customers trusted that their money would be protected but instead was used for other selfish reasons. I'm pretty sure this isn't the first time something like this has happened. Its about time that these culprits be prosecuted. If this continues who knows where the economy might end up.

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  16. It is a complete disregard of the law to let the CEOs basically get away with grand theft. 1.6 billion dollars is a lot of to lose and taking advantage of people is unacceptable. This trend needs to stop to let CEOs basically get away with murder and no one does anything about it. This is why capitalism is not always the best thing in this country. Greed takes over and people do not care about the consequences. These CEOS must be handled with the law as every other human being in this country.

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