Corzine Complains To Judge That MF Global Trustee Actions Are Hurting His Defense, Louis Freeh Nods In Agreement

Freeh is fighting for the entrenched and engorged banking status quo, where legitimizing the theft of hundreds of millions by Jamie Dimon is just another part of the job.

Giddens is doing great work.  Freeh's statements that portray events as a feud that should be settled amicably are disingenuous and inaccurate.  As Giddens points out they have different roles and objectives.  Giddens is charged with reimbursing customers while Freeh's goal is to reimburse creditors (JPM) at the expense of MF customers.  Freeh has a number of conflicts here as he fights to allow Jamie Dimon to hold on to stolen customer funds.

The fact that the law has been morphed and abused to make customers not first in line is a travesty of our bankruptcy and creditor system and only occurred because big banks (the creditors of MF Global) lobbied to have the rules changed in the first place.

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Reuters

Corzine Complains to Bankruptcy Judge

NEW YORK, Aug 29 (Reuters) - Former MF Global Chief Executive Jon Corzine is fighting efforts by a bankruptcy trustee to join forces with customers suing him.

Corzine, along with other current and former MF executives, filed an objection in court on Wednesday arguing that their ability to defend themselves would be hurt if trustee James Giddens is allowed to assign his legal claims to plaintiffs in existing cases. The executives are defendants in multiple lawsuits accusing them of mismanaging the firm and playing a role in its October 2011 collapse.

If allowed to join the customer cases, Giddens would have the right to limit the information and documents available to the executives through discovery, as well as dictate which documents the executives would turn over to plaintiffs, lawyers for Corzine and the other executives wrote.

Commodity trader customers of the firm's broker-dealer unit are facing an estimated $1.6 billion shortfall in their accounts, which Giddens has said is due to the firm's misuse of customer money in a frantic attempt to keep it afloat.

Some of the customers have sued Corzine, Steenkamp, Bradley Abelow, General Counsel Laurie Ferber and others.  Giddens, too, said he saw valid claims against the executives for negligence and breach of fiduciary duty, but earlier this month he said he would forgo bringing those claims himself in favor of assigning them to and cooperating with the class-action plaintiffs.

Under Giddens' plan, any proceeds from the litigation would be sent to the broker-dealer's estate and distributed by Giddens to customers.  The plan also faces pushback from Louis Freeh, Giddens' counterpart trustee who is liquidating MF Global's parent entity.  The two trustees, which represent the interests of different sets of creditors, have long battled over entitlement to various pots of money.  Freeh is trying to pay back creditors of MF Global's parent, like lender JPMorgan Chase & Co.

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From earlier today:

Update: James Koutoulas On State Prison For Corzine

Comments

[john]

I will be doing a 100k (metric century) bike race in a few weeks. Just wondering if anyone has ideas for a non-sponsored logo for my cycling shirt. Any suggestions or permissions to use any logo would be appreciated.

I am not asking for a sponsorship or money but do offer a little free advertising for a good cause. Cheyenne, your movie logo would fit in quite nicely. You all know how to reach me.


john

[LiberatedCitizen]

With obama/holder refusing to prosecute these crooks now you know what obama really meant when he said

“My administration,” the president added, “is the only thing between you and the pitchforks.”

Nothing done about this either

The case against Lehman Brothers

http://www.cbsnews.com/8301-18560_162-57491089/the-case-against-lehman-brothers/?tag=strip

Ahh but don't worry they will be better able to hide their fraud in the future

Banks Now Trying Extra Hard To Avoid Making The Rookie Mistakes That Mean Getting Caught Committing Fraud

http://dealbreaker.com/2012/08/banks-now-trying-extra-hard-to-avoid-making-the-rookie-mistakes-that-mean-getting-caught-committing-fraud/

Think you FDIC Insured money is really safe?

Doubts Remain Over Banking Industry “Recovery” – FDIC Quarterly Banking Profile

snip

The FDIC Deposit Insurance Fund (DIF) balance increased during the quarter to $22.7 billion, up $7.4 billion from the previous quarter. The DIF fund, which protects banking depositors from losses when banks fail, covers insured deposits of $7.1 trillion. This is equivalent to trying to protect yourself with an umbrella in the middle of a Category 3 hurricane. The collapse of one of the “too big to fail” banks would immediately require the FDIC to seek financial assistance from the U.S. Treasury. During the height of the financial crisis, the FDIC was granted a line of credit with the U.S. Treasury for up to $500 billion.

http://problembanklist.com/doubts-remain-over-banking-industry-recovery-fdic-quarterly-banking-profile-0562/

How Safe is My FDIC-Insured Bank Account?

http://www.financialsensearchive.com/fsu/editorials/martenson/2008/0414.html

[DailyBail]

LC

As far as the FDIC insurance fund, it's always been that way. It's just a guarantee, not backed by anything tangible. It never has been. Yes, the FDIC collects fees from banks annually to keep the fund replenished, but it's just window dressing. The Treasury has and will step in any time there is a shortfall.

[FREEH IS ANOTHER PILE OF ASHCROFT STYLE LIZARDRY]

today I drove thru a few neighborhoods around where i live and looked at the 'upshoots' of home made 'for sale' signs popping up around everywhere. not realtor signs to sell properties, but hand painted ones done with broad tip magic markers on cardboard or that white foam core crap.

also, vehicles parked in yards with these same signs. FOR SALE

my guess is that the credit lines are all tapped out, the people are flat fucking broke now, and their homes are sliding into
foreclosure due to no jobs. yep, I pay attention to who's car is in the driveway too. used to be a time when virtually all were at
work somewhere. not any longer they're not. they're home all day. standing by the mail box on those certain days that the
checks are supposed to come in the mail.

this nation is collapsing. How asshats like Louis Freeh can nod in agreement with Jon Corzine's sorry thieving ass is, to put
it bluntly, just amazing. Does Freeh have a clue how millions of fuckers like himself will have to flee this goddamned toilet when the shit does come unglued? Does he have his visa for Paraguay ready?

this is giong to unravel real fast. then what? How many more jerks like Freeh will be listening to other asshats like Corzine
whine about his defense for MASS THIEVERY is being harmed by those pesky MF GLOBAL trustees????

this is lunacy. this is going to be a very ugly train wreck. Freeh just might as well start packing his bags for his exit because guys like him won't be looked at with admiration in the aftermath of this crap. This is LOOTING, pure and simple, being legitimized by legal shenanigans and obfuscation of the massive theft going on every goddamned day!

[Howard T. Lewis III]

Louis Freeh, the genius who said Vince Foster floated down 700 feet of dirt path before shooting himself in the mouth. Not a speck of dust was found on his shoes and he had carpet fibers all over his clothes and underwear. This same Louis Freeh ordered an FBI marksman to shoot an unarmed woman and her baby in the back at Ruby Ridge. He also said that 7 Saudi Arabians hijacked jet liners on 9-11-2001 and jumped out and climbed to safety in the World Trade center I and II. About time we dumped this ass.

[SKINFLINT]

Hey John, I could send you a family picture of mine that shows what a bunch of dumb assed Irish people look like before they owe their government trillions of dollars and an after shot. The thing is it would pretty much look the same because they still don't know that their gubment has stolen all the cheese.