Breaking: MF Global, Greed and Missing Client Funds

According to its website, MF Global is

“a broker-dealer dedicated to helping clients discover and capitalize on market opportunities. We deliver trading and hedging solutions across all assets in markets around the world. MF Global is a leading broker of commodities and listed derivatives and one of 22 primary dealers authorized to trade U.S. government securities.”

But according to federal regulators, MF Global may not have ‘helped” its clients at all…rather, it has possibly gambled their clients funds away in yet another example of reckless activity by Wall Street financiers. By law, customers’ funds must be kept separate from company funds; it is suspected that this ‘firewall’ was breached by MF Global traders. As of this writing, $700 million in customer funds can not be accounted for. The commodities & derivatives trading firm is run by Jon S. Corzine, the former Governor of New Jersey and a former Goldman Sachs Executive.

Corzine was characterized at Goldman Sachs by his toleration of losses in trades, according to the book “Goldman Sachs: The Culture of Success,” by Lisa Endlich. Once at MF Global, Corzine bought huge debt holdings from Spain, Italy, Portugal, Ireland, and Belgium, all countries with significant fiscal problems...an approach that caused Forbes Inc Magazine Bob Lenzner to remark,

"This is called going against the grain with a vengeance. Stupid– and a tad grandiose."

As a result of those risky purchases (to the tune of $6.3 billion), MF Global reported a $191.6 million quarterly loss on Tuesday. Moody’s and Fitch then dropped MF Global’s rating to “junk” status last week, and the firm lost 2/3 of its market value. As the company’s reputation unraveled, MF Global sought a larger firm to buy it, negotiating through Black Rock Financial. Barclays, Citigroup, JP Morgan Chase, and Wells Fargo, all banks which have bought bad debt and then traded it for taxpayer-funded bailouts, wee all approached. On Saturday, it was thought that Jeffries & Company might buy MF Global; on Sunday, Interactive Brokers was rumored. But late on Sunday night, Interactive discovered that customer money was missing, ending the deal and setting of alarms among regulators. The Federal Reserve Bank of New York cut the firm off from borrowing.

Just a few hours ago, MF Global filed for bankruptcy protection.

Another example of American’s pensions gambled away in reckless greed. Another day of Occupy Wall Street citizens jailed for exercising Constitutional Rights…and another day of Wall Street banksters walking free.

Masks, GLBT rights, & GOP Presidential Politics

This month saw the 25th Year Anniversary performance in London of the Phantom of the Opera - the highest-grossing entertainment event of all time, the most financially successful theatrical show in history, and the longest running show on Broadway. Around the world, the show is easily identified - even by those who have never seen it - by the trademark Phantom’s Mask

Masks have always intrigued me. Fascinated, terrified, and intrigued me.

As a child, clowns scared me. They still do. There is something evil and scary about clown make-up to me; it is a very obvious statement that what you “see” before you is not what is “really” underneath. Something is being prettified, or changed, or hidden; something awful is being presented as if it’s funny and joyful. I don’t like them.

I was drawn into the 1998 film, “The Man in the Iron Mask,” which itself was based on the Alexandre Dumas novel of an actual man imprisoned in the Bastille. In the movie, it is proposed that the prisoner was the twin brother of King Louis XIV - but he was kept hidden from view behind locked prison doors, his face encased in a locked iron mask so no one would recognize him as an heir to the throne. Had his true self been revealed, it would upset the established social and political order, and so the King insisted that no one be permitted to see him.

As a gay man living a closeted existence for several decades, I could identify with that.

Just as I can identify with the Phantom.

Of course, in the Phantom’s case, no one forces him to wear his mask. Rather, it is his fear of rejection, and the public's revulsion at his "differentness," his disfigured face, that causes him to hide. He voluntarily wears the mask to obscure his true identity, and lives in the shadows of the Opera House’s basement. There he can continue his life's musical work without fear of rejection. I can identify with the Phantom even more than with the Man in the Iron Mask.

I recall a heated discussion I had six years ago about the Phantom. I was admittedly sympathetic to him, understanding his perspective. The woman with whom I was speaking was outraged. “He is a monster! He’s a liar! He manipulates and uses people! How can you defend him?!” I suspected that she was seeing this from her very personal perspective, just as I was seeing from mine.

Which brings me to the main point of this blog post: the scrambling by Republican presidential candidates to shove masks back on our faces.

Here in New Hampshire, we go through the every-four-year sideshow of Presidential-wannabes traipsing through the state seeking a First-in-The-Nation Primary win. And as Primary day gets closer, each candidate tries to outflank the next in securing votes. This week, they tried to outdo each other on the issue of Marriage [In]Equality.

In August, Rick Perry had signed a pledge to support a Constitutional Amendment banning Marriage Equality nation-wide. This past Friday, at a dinner hosted by the extreme right-wing “Cornerstone Action,” Perry shored up his credentials, adding,

"As conservatives…We believe in the sanctity of traditional marriage, and I applaud those legislators in New Hampshire who are working to defend marriage as an institution between one man and one woman, realizing that children need to be raised in a loving home by a mother and a father."

Perry was referring to the current effort by the NH House to repeal the 2009 NH Marriage Equality bill.

Mitt Romney, despite pledging his personal support as an advocate of GLBT rights to the Log Cabin Republicans in 1994, turned around and signed the pledge calling for a federal amendment defining marriage as one-man and one-woman. Rick Santorum has stated that there is “no right to privacy in the U.S. Constitution” (50 years of Court decisions say otherwise), and called gay rights to the equivalent of another 9-11 terrorist attack in the Morning Call. This actually sounds like a remix of Michelle Bachmann’s letter in which she declared that legislators who oppose a federal Marriage Amendment to be like “soldiers who missed the Pearl Harbor warning signs.”

Speaking (or should I say ”pandering?”) to the Christian Broadcasting Network, Last week possible front-runner Herman Cain said,

“I think marriage should be protected at the federal level also…I used to believe that it could be just handled by the states but there’s a movement going on to basically take the teeth out of the 1996 Defense of Marriage Act and that could cause an unraveling, so we do need some protection at the federal level because of that and so yes I would support legislation that would say that it’s between a man and a woman.”

Make no mistake: Theocratic political action groups such as the National Organization for Marriage and Cornerstone Action are scrambling to find ways to lock iron masks on gay men and women, lest the world see us for who we are: neighbors, teachers, firefighters, sons, daughters, architects, sports figures, secretaries, construction workers, accountants, warehousemen, drivers, and nurses.

If we can’t be seen, or acknoweldged, or recognized, they hope, we will be forgotten, as if locked in the Bastille.

As they attempt to re-introduce a climate of fear and loathing, they work on our psyche much as the crowds worked on the Phantom’s psyche: by convincing him that he was ugly, that he was different, that he would be attacked by ‘normal’ people...and just as he chose to live his life behind a mask so no one could see, so, still, do many gay and lesbian citizens.

After all, NH Rep. Ralph Boehm, the vice chairman of the House Education Committee, tried to gut the states new anti-bullying law, saying that

"Students need to be prepared for life...bullying is part of it.”

You see? We should hide...because otherwise we will be attacked. It's just "part of life."

But living behind a mask has repercussions worse than these theocrats understand.

In a 2008 poll of 260 openly gay men in New England, fully one half stated they used to me married to a woman…which, of course, ended in divorce.

They did not ‘change’ their orientation half-way through their lives. Rather, they tried to live behind a mask, where no one could see their ‘real face,’ or their ‘differences,’ and hope it would work.

It doesn’t.

And for those who claim to be on the side of “marriage,” they do themselves – and society – no favor by forcing men to live in ways they can’t.

Harvey Milk pleaded with us to drop the masks:

“…Gay brothers and sisters,... You must come out. Come out... to your parents... I know that it is hard and will hurt them but think about how they will hurt you in the voting booth! Come out to your relatives... come out to your friends... if indeed they are your friends. Come out to your neighbors... to your fellow workers... to the people who work where you eat and shop... come out only to the people you know, and who know you… But once and for all, break down the myths, destroy the lies and distortions. For your sake. For their sake. For the sake of the youngsters who are becoming scared by the votes from Dade to Eugene…”

No More Closets…No More Bastille Prison Doors…No More Iron Masks…No More Phantoms.

And no more two-faced, pandering, ignorant hateful Republicans as President, thank you.

Police Action in Oakland Critically Wounds Iraqi Vet

While ABC is worried about Max and Len fighting on Dancing With the Stars and NBC's top web headline is a lost cat that has been found at JFK Airport, a Police State is taking hold in California, and the first serious shots have been fired. Police, clothed in riot gear and armed with shot guns and tear gas, descended on Occupy Oakland, dispersed protesters, and destroyed tents and support services.

Alexander Abad-Santos of the Atlantic Wire reports:

Scott Olsen survived two tours in Iraq, but is in a hospital with critical injuries because of a confrontation between Occupy Oakland protesters and police. A member of the Veterans for Peace Organization, Olsen, 24, is in critical condition, according to The Guardian. "This poor guy was right behind me when he was hit in the head with a police projectile. He went down hard and did not get up," wrote Jay Finneburgh, a photographer of the protests. "I'm just absolutely devastated that someone who did two tours of Iraq and came home safely is now lying in a US hospital because of the domestic police force," said Adele Carpenter, a friend of Olsen's who spoke with The Guardian, which adds, "Olsen had only moved to Oakland in July, Carpenter said. He is a member of Veterans for Peace and Iraq Veterans Against the War, and met Carpenter through her work with the civilian soldier alliance."

As the video below shows, police did not attempt to help the wounded, but left Olsen lying in the street. Fellow citizens came to his rescue, carrying him out of the police melee. As they did so, another police officer lobbed a flash grenade at them

First-hand accounts of the riot:

The police were intimidating and I have been to many protests in my life, but nothing quite like this. I have never seen such a police presence with such force, especially for a calm crowd. The tear gas was pretty brutal, it is still on my clothes and skin this morning. Anywhere in downtown Oakland had the smell and sting of the gas all night. —Gina W.

We talked to the police across the barricades about how we were also fighting for them, for their children's shot to education without lifelong debt, for the preservation of their collective bargaining rights. We expressed this solidarity knowing that they might not be listening, but we also know that the reasons for not listening are deeply personal... —Julie K.

As a retired military man, I wanted to reiterate what [I heard] the Marine Sgt espousing to the police: There is NO honor in brutalizing your own people. The tear gas stung but I have been exposed to worse, including Agent Orange. What I saw at Ogawa Plaza made me extremely proud of those brave souls that were passionate about their causes. As we say in the Marine Corp and Navy...BRAVO ZULU.—Pete H.

Governor Brown, hero of the flower child generation...why are you permitting a Police State to emrge in Oakland? Will we wait for another Kent State Massacre before you reign them in? Will the rest of America rise in horror at the emerging Fascist State? Or will they non-chalantly decide that protesters get 'what they deserve?'

U.S. Constitutional Law is on the protesters side:

Wherever the title of streets and parks may rest, they have immemorially been held in trust for the use of the public and, time out of mind, have been used for purposes of assembly, communicating thoughts between citizens, and discussing public questions. Such use of the streets and public places has, from ancient times, been a part of the privileges, immunities, rights, and liberties of citizens.

- HAGUE V. COMMITTEE FOR INDUSTRIAL ORGANIZATION, 307 U. S. 496 (1939)

Sign this Petition to the Mayor of Oakland

Keene Bank of America protest yields immediate results

Today, from 11:00 to 2:00 pm, volunteers with Occupy Keene stood outside of the Keene Bank of America branch to encourage that bank’s customers to close their accounts and support local credit unions instead.

While about seven demonstrators stood in front of the bank singing, passing out flyers, catching much of visual attention of passers-by (and, one case, sporting a Guy Fawkes mask), two others (including your blogger) went around the back of the bank to catch drivers as they exited the drive-through. In all, over 250 flyers were given out to bank customers, each of whom was engaged in direct conversation about the “Move Your Money” movement. One side of our flyer chronicled the fraud, fees, foreclosures, and outrageous actions of the Bank of America since 2007; the other side explained the advantages of using local credit unions, with step-by-step recommendations as to how best to smoothly transfer banking operations from one institution to another.

One customer, a young man who appeared to be in his late twenties, excitedly responded to us, “I just did it! I just opened up an account at the credit union, and I closed my Bank of America account!”

Indeed, he wasn’t alone: a phone interview with the Cheshire County Federal Credit Union by your blogger confirmed that several people came in today to open new accounts, and self-identified as those leaving the Bank of America.

For others, it was just the encouragement they needed. “You know, I’m gonna do this! They just charged me seven bucks just to cash a check!” said one very upset man to me as he exited the Bank of America. In fact, the response overall was overwhelmingly positive and supportive, with most customers smiling, offering ‘thumbs up,’ or expressing outright solidarity. Some bemoaned the fact that BoA owned their mortgage, and they felt they couldn’t ‘escape.’ Others noted, with regret, that their children attended colleges where the BoA has a contractual monopoly on-campus.

Cheshire TV covered much of the event, and interviewed both customers and demonstrators. Overall, the effect of this effort came not from our numbers or loudness, but from our one-on-one conversations with a very specific target population that is already fed up.

Occupy Wall Street discusses National Political Convention in Philly

By Linette Lopez

It's in the works. A massive Occupy Wall Street gathering with delegates from all over the country. And if these plans are carried out, Occupy Wall Street will be a major force to be reckoned with on Election Day 2012.

The date? July 4, 2012.

Put aside questions of whether or not the movement will survive that long. Imagine that they do, because they have no doubt.

If only our economy had that kind of confidence.

Discussions on how to proceed will begin tomorrow at a massive General Assembly at 7 PM. Here's how they describe what they're about to do:

....the election of delegates and holding of a national general assembly or convention on July 4, 2012 must be organized. No calls for violence. No calls for the violent overthrow of the government.

...Once organized and the delegates have been elected by direct ballot in all 435 districts. They must demand that our elected leaders take action. If they do not take action within one year of the demand, we will demand their mass resignations and that new elections be held so we can take back our democracy from the corporations and those who BUY power and influence with MONEY. Yes this includes unions and lobbyists.

The Citizens United case must be reversed...

More concrete, long-term measures can also be found on their website in a document called The Steps to Non-Violent Revolution and the Convening of a National General Assembly. There are ten of them, and the most amazing thing about them, is that they outline a democratic plan to decide on a platform of reforms supported by occupations across the entire country leading right up to the 2012 election.

Perhaps Occupy Wall Street only thought of doing this now, but I sincerely doubt it.


Basically, if this is carried out, Occupy Wall Street could shift the course of American politics at its highest levels.

Here are the steps:


1. The Occupy Wall Street movement, through the local general assembly, should elect an executive committee comprised of 11 people or some other odd number of people that is manageable for meetings. Ideally this committee should represent each city in the U.S. that is being occupied.

2. The executive committee will then attend to local issues such as obtaining permits, paying for public sanitation and dealing with the media. More important, the executive committee shall plan and organize the election of the 870 delegates to a National General Assembly between now and July 4, 2012.

3. As stated in the 99% declaration, each of the 435 congressional districts will form an election committee to prepare ballots and invite citizens in those districts to run as delegates to a National General Assembly in Philadelphia beginning on July 4, 2012 and convening until October 2012.

4. Each of the 435 congressional districts will elect one man and one woman to attend the National General Assembly. The vote will be by direct democratic ballot regardless of voter registration status as long as the voter has reached the age of 18 and is a US citizen. This is not a sexist provision. Women are dramatically under-represented in politics even though they comprise more than 50% of the U.S. population.

5. The executive committee will act as a central point to solve problems, raise money to pay for the expenses of the election of the National General Assembly and make sure all 870 delegates are elected prior to the meeting on July 4th.

6. The executive committee would also arrange a venue in Philadelphia to accommodate the delegates attending the National General Assembly where the declaration of values, petition of grievances and platform would be proposed, debated, voted on and approved. The delegates would also elect a chair from their own ranks to run the meetings of the congress and break any tie votes. We will also need the expertise of a gifted parliamentarian to keep the meetings moving smoothly and efficiently.

7. The final declaration, platform and petition of grievances, after being voted upon by the 870 delegates to the National General Assembly would be formally presented by the 870 delegates to all three branches of government and all candidates running for federal public office in November 2012. Thus, the delegates would meet from July 4, 2012 to sometime in early to late October 2012.

8. The delegates to the National General Assembly would then vote on a time period, presently suggested as one year, to give the newly elected government in November an opportunity to redress the petition of grievances. This is our right as a People under the First Amendment.

9. If the government fails to redress the petition of grievances and drastically change the path this country is on, the delegates will demand the resignation and recall of all members of congress, the president and even the Supreme Court and call for new elections by, of and for the PEOPLE with 99 days of the resignation demand.

10. There will NEVER be any call for violence by the delegates even if the government refuses to redress the grievances and new elections are called for by the delegates. Nor will any delegate agree to take any money, job promise, or gifts from corporations, unions or any other private source. Any money donated or raised by the executive committee may only be used for publicizing the vote, the National General Assembly, and for travel expenses and accommodation at the National General Assembly ONLY. All books and records will be published openly online so that everyone may see how much money is raised and how the money is spent each month. There will be no money allowed to "purchase" delegate votes as we have in the current government. No corporate "sponsorship".

Source: Business Insider

Bank Transfer Day: The 5th of November

In a post last week on this blog Bank of America, I highlighted some of the Greed, Bailout activity, Fraud, and Fees engaged in by that bank. But let’s be clear: The Bank of America is certainly not alone. Citibank, J P Morgan Chase, Wells Fargo, and other multi-state, multi-national banking powerhouses have all been involved in foreclosure scandals, bailouts, speculative gambling on hedge funds, the destruction of the global economy, and the imposition of fees on working class depositors.

And last but not least, let us never forget that the bailouts they received from Washington politicians of both parties – bailouts that were given, supposedly, because they were “too big to fail” - were given in reality because 25% of the funds the federal government borrows for deficit spending comes from these financial institutions. And since the American public pays federal income taxes to pay the interest on these debts, this results in yet another transfer of wealth from Americans to Corporate Banks who receive that interest.

But there is a solution.

WHAT? A massive transfer by average Americans of their money out of the banks and into credit unions.

Why? Because you will get better rates and fewer fees; your community banker will learn your name and provide you with more personal service; you will be keeping money in your local community which increases economic development and creates local jobs; you will make your voice heard, that you will stand strong and no longer be used as a pawn in a banking system that has run amok. You will be investing in Main Street - not Wall Street, where deposits are used for risky investments and gambling at the expense of the global economy. Beginning in 2008, Wall Street’s corporate banks demanded a bailout of $700 billion…and while the size of these Wall Street “Banksters” threatens our economic system, their size has actually increased since we bailed them out. According to FDIC data, the largest 5 banks held only 13% of US deposits in 1994; today they hold 38%. If the government won’t step in and apply Antitrust statutes to the Banking Industry and break them up, then we can do it ourselves and end ”Too Big To Fail” once and for all.

WHEN: “Remember, remember the 5th of November” goes a British child’s rhyme, in connection with Guy Fawkes Day (the character ‘channeled’ in the recent film, “V for Vendetta.”) Together we can ensure that these banking institutions will ALWAYS remember the 5th of November!! If the 99% remove their funds from the major banking institutions and support local non-profit credit unions instead on or by this date, we will send a clear message that Americans will not support rapacious and unethical corporate business practices any more.

HOW?

1) Research your local credit union options. Find one here: USA Credit Unions
2) Then, open an account with the one that best suits your needs.
3) Cancel all automatic withdrawals & deposits from your old bank
4) Transfer your funds to the new account, keeping some cash available until your new checks and debit card come through
5) Follow your bank's procedures to close your account before November 5.

Start NOW, because between your debit card, credit cards, direct deposit of paychecks, and automatic bill pay, the banking world has you practically captive.

NERVOUS? A wonderful post recently appeared on Reddit's Occupy Wall Street Forum, and I reprint it here in its unedited entirety:

I know most of you plan to move your bank accounts on or before November 5 and I just wanted to share the experience my wife and I went thorough today. I expect you'll likely have the same experience.

My wife had a BofA account from when she was in college. We went in to our local branch to close out her account.

First off, they are already feeling the squeeze of people leaving. The rep asked us if we were leaving because of the fees. My wife said she was for that reason. The rep then decided to try and educate us on the fees. Don't listen to them. My wife stood to her guns that she wanted to just join a local credit union to support our local economy, etc.. That ended the rep's attempt to keep my wife a customer.

My wife had her account closed and she pulled out all her money. Total time, about 20 minutes at most.

My experience was a bit different as I was with Chase, and had a lot more money in my account.

I walked into my local branch and spoke with the branch manager about closing my account. So she helped me.

Once we say in her cubicle, she asked me why I was leaving. I told her I wanted to move to a local bank and help with our community by investing in it by being a customer. I could tell this conversation was going to be difficult.

It literally took me 30 minutes to close my account. But the branch manager was freaked out because of me closing my account, she was worried her district manager would ask why I was closing my account. I then told her this, "look this isn't anything against you or any of your tellers in this branch. I'm just not comfortable having my life savings wrapped up with Chase. I've read plenty of news articles about shady practices Chase has been in. I'm worried that Chase invests money in other states with bad loans. I'm not comfortable letting a for profit company take everything I saved and make bad choices. I dont want to contribute to the cause. I want to take my money, put it in my local credit union, and help them give borrowing capability to my community."

She looked like she was about to cry. I didn't say it in a dick tone mind you. I just felt that she would have to answer to her boss why someone pulled their entire savings out in one day, she had to know the truth.
At any rate, my wife and I opened our new credit union accounts and we're happy. I'm in my 30s and I remember as a kid, banks used to have a personal feel to them and our credit union has that. Everyone smiling, chocolate candy dish at the front desk, it just feels good.
So the point of this rant is I wanted to just give everyone a heads up about these things:

• remember, the teller, manager, branch manager are not the enemy. They're part of 99% too and they need to earn a living. Please don't take your frustration of fees and other problems out on them. I almost did until I stopped myself.
• when asked about why you're leaving, be honest. Not happy with the $5 fee? Let them know. Not happy they foreclosed on homes of friends? Let them know. As we draw out our funds, the district managers will know something is up and ask their branch managers. If the branch managers have our feedback to give, it could really affect changes in the future.
• stick to your guns. If they dangle a free toaster in front of you, ignore it. It'll make things easier if you pick out a bank ahead of time. It took us ten minutes to find the one we liked. We compared the two banks and decided the CU was way better and was worth an hour or two of our time. If you have an idea of how much better a new bank is, it'll be easier to get rid of the old one.
• don't feel guilty for leaving your bank. I did for a bit, but kept reminding myself that our CU was going to make life easier.

If you feel compelled to tell the CEO of your old bank after you leave, do it. You might feel better. Just don't write any nasty things. Be honest and tell them you left because of this list of reasons. Sorry I you couldn't stay with them, but you found a better bank because they don't have these list of reasons after bank.
Here is a list of the big four banks I could think of. These are the email addresses of the CEOs:

Chase - jamie.dimon@jpmchase.com
BofA - brian.t.moynihan@bankofamerica.com
Wells Fargo - John.G.Stumpf@wellsfargo.com
Citibank - Vikram.Pandit@citi.com

Finally: When closing your bank account, be courteous on your way out the door and don't take it out on the bank staff.

For more information:
Move Your Money Project

Facebook Bank Transfer Day Page