Posts tagged Jon Corzine

Banks Can Legally Steal Customer Funds From Private Checking Accounts

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Source: http://occupycorporatism.com

By

Occupy Corporatism

Banks Can Legally Steal Customer Funds From Private Checking AccountsIn 2007, the Sentinel Management Group (SMG) collapsed, leaving many customer segregated funds lost after they had been used as collateral. After a plethora of lawsuits and creditor claims, a decision earlier this month in the 7th Circuit Court placed the banking cartels ahead of customer claims for funds returned. Essentially, the Bank of New York Mellon (BNYM) sued to be first in line for return on stolen customer account monies – and won the right by the US court system.

In the mainstream media (MSM), the SMG collapse and subsequent ruling in favor of BNYM was touted as a difficulty “for customers to recoup money lost”.

SMG, a Chicago-based futures broker, had stolen more than $500 million in segregated customer funds to use as collateral on a loan to BNYM for in-house proprietary trading operations. Their books were audited by the National Futures Association (NFA), however the NFA admitted that they could not understand the convoluted mess they were provided by SMG to sign off on. And yet they did; and approved the audit.

BNYM sued SMG to re-coup any monies owed to them. However, these monies were customer segregated funds that SMG stole and re-hypothecated.

In federal court, John D. Tinder, US Circuit Court Judge ruled “that Sentinel failed to keep client funds properly segregated is not, on its own, sufficient to rule as a matter of law that Sentinel acted ‘with actual intent to hinder, delay, or defraud’ its customers.”

This means that once a banking customer deposits their money into an account with a bank, the funds become property of the bank. The customer, at the point of deposit, relinquishes all rights to that money regardless of any laws in place, legal assurances, claims or guarantees; and this extends from investments to private checking accounts.

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Gerald Celente Will ‘Go Postal’ When He Hears About This

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Source: http://beforeitsnews.com

By BARRACUDA

Posted by on Jul 27, 2012

Gerald Celente Will ‘Go Postal’ When He Hears About This, Goldman Sachs, Bank of England

Gerald Celente fans won’t want to miss Celente’s first interview after getting word that the next head of the Bank of England could be yet another Goldman Sachs boy.

In the spirit of Celente’s famous saying, “You can’t make this stuff up,” Bloomberg News released a trial-balloon article to assess public opinion of UK Prime Minister David Cameron’s potential choice of another former-Goldman Sachs boy, Mark Carney, to become the next governor of the Bank of England to replace Mervin King at the end of King’s term set to expire in 11 months.

“London is losing so much trust as the global financial center that Prime Minister David Cameron may need to consider an unprecedented choice for Bank of England governor: Mark Carney, the Canadian who polices the world’s financial system and has no ties to the bailouts or rigged markets tainting Labour and Conservative governments alike,” Bloomberg begins its article, titled, Carney Leading Bank Of England Seen As Scandal Remedy.

In keeping with his reputation as a top trends forecaster, Celente previously warned in 2011 of the Goldman Sachs takeover of the global financial system. In November of that year following the news that he was ripped off by MF Global the preceding month, Celente spoke with FinancialSense Newshour’s James Puplava about what he pieced together regarding the omnipresent Wall Street firm.

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The End Of The Affair

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Source: http://www.tnr.com

By Timothy Noah

Jon Corzine’s testimony before the House agriculture committee may mark the definitive end to the Democratic party’s love affair with Wall Street.

Once upon a time, Wall Street bankers were Republicans. Not terribly ideological, they preferred whenever possible a minimum of taxation, regulation, and government in general, but they didn’t make a fetish of it. As the GOP moved right starting in the mid-1960s the east coast Republican establishment began to crumble, and by the late 1980s it was mostly gone. These silk stocking conservatives had been driven out of the Republican party by a social agenda that frightened them, a budget deficit that threatened their livelihoods, and a base that increasingly viewed moderates as RINOs (“Republicans In Name Only”).

By the early 1990s Wall Street was ready to go Democratic. In his new book, Back To Work, former President Bill Clinton writes,

“For every person on Wall Street who resembles the character Michael Douglas played in the Wall Street movies, there are many others who give lots of money every year to increase educational and economic opportunities for poor kids and inner-city entrepreneurs.

“Most of these people are grateful for their success and know that because of current economic circumstances, they’re in the best position to contribute to solving our long-term debt problem and to making the investments necessary to restore our economic vitality. Many of them supported me when I raised their taxes in 1993, because I didn’t attack them for their success. I simply asked them, as the primary beneficiaries of the 1980s growth and tax cuts, to help us balance our budget and invest in our future by creating more jobs and higher incomes for other people.”

In crafting his first budget bill, Clinton was mindful of the bond market to such a degree that James Carville famously complained, “I used to think that if there was reincarnation, I wanted to come back as the President or the Pope or as a .400 basball hitter. But now I would like to come back as the bond market. You can intimidate everybody.”

The Wall Street-Democratic Party love affair came out of the shadows and into the sunlight when Robert Rubin, former co-chairman of Goldman Sachs, became Treasury secretary. The economy was booming, the budget deficit was disappearing, and all was right with the world. The romance deepened through most of the aughts, so much so that in 2010 Rich Lowry of National Review complained, “the Democratic majority was bought and paid for by Wall Street and corporate money.” In 2008 the finance sector actually gave more to the Democrats than to the Republicans, something that hadn’t happened since 1990.

It all started to come apart in the late aughts as Democrats realized that Rubin’s distaste for financial regulation (and that of his deputy and successor, Larry Summers, which was more pronounced) had contributed to the 2008 financial meltdown, in part because Rubin and Summers had outmaneuvered Brooksley Born, chairman of the Commodity Futures Trading Commission, when she wanted to regulate derivatives. Summers (who wasn’t from Wall Street but was a Rubin acolyte) became director of the National Economic Council during President Barack Obama’s first two years in office and the economy floundered. That deepened the alienation between Democrats and Wall Street.

Passage of the Dodd-Frank financial reform law drove the lovebirds further apart as Wall Street enlisted Republican goons first to weaken the bill (and succeeded in many instances) and then to neuter it by pressuring federal agencies to write regulations that created as little accountability as possible.

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