has more of an inside track more of an open door into cheaper funding and that is one thing that m.f. global has now with that cheaper funding with that stamp of approval from the fed and the global was also able to make bigger trading trading transactions it was able to bring in additional customers it was able more importantly to get credit lines from the big banks and those credit lines and those big banks are what took their money when things turned sour from m.f. global first and those are the banks those are the creditors that are first in line to get anything back after the bankruptcy ahead of as you mentioned in the opening the customers right so a really important distinction and a really important change in status that the fed gave to m.f. global and let's talk about what we what we know not then but what is reiterated in this report is that not only was corazon acting as c.e.o. but he also traded actively on its behalf through a specially designated account now this is bizarre because at the end of the day he's running a futures commodities merchant but is it kosher and if it is w

morgan to m.f. global and throughout the financial crisis of course too much risk taking hiding that risk expanding leverage too much complicit complicity and wrongdoing with too little oversight so what is going on is this i don't know the ford pinto phenomenon remember the car with the infamous exploding engine you see there crash test found it was faulty but the assembly line was already made and the company found it would cost them less to deal with the liability of settlements than to recall or to repair the cars so is that what we're seeing here with management and traders at these firms not to mention those who audit them it's just a bigger payoff to go along with and hide a massively risky trade even though it could very well blow up the liability of a lawsuit or whatever the fallout may be will simply cost less mana now but francine mccann is here to help us answer that and and talk about much more of this she's author of the blog read the auditors and a columnist for forbes and american banker an

wanted to alert us to the situation for m.f. global customers in australia and now we'll look into this more fully next time we cover m.f. global on the show but i did want to share some of his email so andrew perrotte i hope i said that right from south australia says essentially and that ga which is australia operated under the u.k. license and the local rules and regulations were obviously not thought out enough to monitor them so the whole thing is stuck in limbo the administrators have recovered a large percentage of the funds but they do not have a regulatory framework to follow to distribute them so they are essentially relying on the courts to make precedent and provided provide guidance on distribution as a result clients have received zero per cent the worst of all countries now that's according to him some other m.f. global sources that i talked to customers have confirmed that said it's not australia alone u.k. account holders also have received nothing because the u.k. trustee is waiting for a resolution to the us is seven

. >> tom: the trustee liquidating the bankrupt futures trading firm, m.f. global, is taking aim at the firm's former c.e.o. jon corzine, saying corzine's aggressive trading strategies pushed m.f. global to the brink. in a 275 page report filed today with the bankruptcy court, trustee james giddens said he may seek civil claims against corzine, and other top executives for breach of duty. giddens also said he plans to sue j.p. morgan chase, one of m.f. global's two banks, if they can't settle over millions of dollars of missing client funds in the next 60 days. >> tom: stocks saw choppy trading as traders and investors worked through signs of the u.s. economy slowing, and the european anxieties. the s&p 500 staged at least three rallies today, right from opening bell, around 2:30 eastern, and in the final 20 minutes of the session. that last one helped the index finished with a razor thin gain. trading volume on the big board was down from friday, at 817 million shares. nasdaq volume was almost 1.8 billion. the losses today were concentrated in two sectors, the fin

a look at the prospects of greater supervision for the big banks today m.f. global and j.p. morgan teach us a lesson and who make sure it won't be just more of the fox guarding the hen house then the occupy wall street movement may be one that's leaderless but one of the more involved prominent participants is running for congress will speak to him on our show about his campaign and about where the occupy movement is now we'll have all of that and more for you tonight including a dose of happy hour but first let's take a look at what the mainstream media decided to miss. all right everyone's of the historic recall election in wisconsin has come and gone and there's a lot everywhere you looked you found someone talking about the role money played in this election the first big one really in this post citizens united era. governor walker will keep his governorship after the most expensive campaign in wisconsin's history about two thirds of governor scott walker's donations are from out of state and special interest it's seven to one it's unbelievable if i want to go anywhere v

they're looking into what happened with m.f. global i'd like to know i mean isn't sarbanes oxley if you sign off on accounts aren't you held responsible as the c.f.o. ok let me let me let me let me let me finally kind of ask this question because. we have interview lots of folks on the show from different perspectives but there is a need for for capital markets there is a need for the distribution of risk and reward there is a need for. some kind of unit of exchange in a banking system and you've come up for thirty years and you've seen a progression. stand which as we. moved away from the underlying utility value of these markets into something which is approaching pure casino capitalism so with staying with an industry still trying to do something about it by raising awareness is that that is that what you're trying to do or i think if there were still guys out there that think that the markets can you know i always i'm an optimist eternal optimist even if you read my book and everybody's going to say that i'm pessimistic because it'

and other m.f. global executives for negligence and breach of the do shiri duty the new york times also reports that bank of america's top execs and those meant to police them are likely to catch heat for new revelations about the banks' bad behavior during the financial crisis that's come out does bear market psychology we ask mean will see more aggressive attempts to hold bankers accountable will try to answer that and is the downturn in the dow a harbinger of a major economic contraction ahead we'll tell you why the r. word recession may be making a comeback let's get to today's capital account. so george soros is known as many things but he's known as the man who broke the bank of england so hey that could be one reason why when he gives a speech saying europe has the really months to save the euro it gets a lot of attention now here's a snippet of what he said over the weekend. but we are a born. gramont group who could do more but do it through. the bone. but we know nothing will stop e.u. authoritie

has seen john cause zein be brought up on charges if they're bringing down m.f. global hey couldn't be because he was a big bundler for obama now it's just a little different again it's all the same yeah i agree obama's been wimpy on wall street but i guess what i'm asking is would it be worth with mitt romney i don't think so i think you'll be just as bad and you know this because you have congress and they're all in it together it's not going to change much what could become much worse how much worse could romney make it than obama in terms of helping out his wall street bodies is he going to give them more money yet just like obama would if we have another financial crisis you'll see the fed dump more dough into it so i don't think it will be much of a difference and you mentioned congress i have to ask you because. tween the last time i spoke with you and now we've seen jamie di men on the hill twice and if you want to get have any kind of evidence that would make you feel like no one has the political will to go after wall street just watch politicians pretty much

banks at the center of this plausible fraud in the united states of course we now find out that m.f. global and j.p. morgan were involved in a massive fraud j.p. morgan's balance sheet at a two billion dollars explosion search became a six billion dollar explosion i'm hearing it's going to be a thirty billion dollars and j.p. morgan stock prices going the same way at enron zero same thing going to bank society generally in france one of the worst banks in the world that's stocks going to zero one of the worst managed banks in the world b.n.p. here in france insolvent stocks going to zero so this is continuing as we've been predicting for months the so-called bounce of two thousand now and two thousand and nine was really just a sugar high brought about by some cash that was injected in some algorithmic trading some high frequency trading again totally fraudulent there was no backing behind it economically now we're back to the primary trend banking collapse sovereign collapse currency collapse gold and silver skyrocketing prices the saying it britain look after the pennies the pounds look a

where is that that we don't know where it came from or m.f. global object morgan remember j.p. morgan stole eight hundred one point two billion from customers they stole it from the customers they pretended to jamie diamond we don't know where it went it's a black hole of debt and he's selling off into the sunset you know drinking themselves silly from all the excesses of his guild gotten gains in congo designed to corps i'm also still funding obama we don't know where the money came from we opened the front door and this billion dollars came pouring in through the front door and ed mcmahon wasn't even there so remember the important ingredient to this con is confusion you must do it very fast you must confuse that person spain bailout terms to be agreed within a week or urgency reflects a growing consensus asparagus claps might start chain reaction that could topple italy and destroy the euro spain has come under pressure from the european central bank germany and netherlands to move before greek elections on seventeen june amid fears that political chaos in greece and the wea

supposed to keep track of positions it's supposed to very literally account for but did the latest m.f. global trustee report show.

going into customer accounts and stealing money from segregated customer accounts we saw during the m.f. global scandal they had some outrageous breach of securities laws very responsibility and yet there's nothing done about this this is outright. so and so this is addressed then everything else is theoretical. and i think we ended on the democratic deficit on both sides of the atlantic i want to thank all my members of the panel for being with us here and thanks to the audience for watching and those watching on the internet. mind machine would be so much brighter if you knew all about sun from funds to freshen.