"MF Global Workers Likely Violated Securities Laws" & TARP

[WhiskeyGirl]

This is an interesting story and it just keeps getting more interesting with each passing day!

"MF Global Workers Likely Violated Securities Laws"

Investment bankers who found the now famous co-mingled client accounts leading to the disappearance of client money when examining MF Global's books in the days before its bankruptcy chalked it up to errors stemming from sloppy bookkeeping as the firm fought to remain solvent during its tumultuous final days.

But the investigators currently looking at MF Global's messy implosion, specifically the disappearance of as much as $1.2 billion in client money, are now coming to a far different conclusion: that people at the firm likely violated securities laws in the handling of these customer accounts, and that those violations could ultimately turn out to be criminal in nature, the FOX Business Network has learned.

http://www.foxbusiness.com/industries/2011/11/23/mf-global-workers-likely-violated-securities-laws/

I recall from memory, that AIG failed because of just one unit - the derivatives division.  The rest of AIG was basically sound.  The derivatives unit was not part of the base business - life insurance.  Why did they acquire this unit?  Who made that decision?

...It’s unclear if the trustee will be able to return any of the missing cash to customers. If the customer money was used to pay off trading losses, that money may never be recovered.

http://www.foxbusiness.com/industries/2011/11/23/mf-global-workers-likely-violated-securities-laws/

The result of saving AIG was the infamous 'pass-through' of BILLIONS of taxpayer dollars  to large investment banks.  Little or no 'haircut' for those on the receiving end.  Oddly, some  also got lots of money from the automaker bailouts.  If those investment banks hadn't that cash infusion at the time, would they have failed?  What might their bankruptcy have looked like?  What would a review of their financial records have looked like?  Practices?

I don't think taxpayers ever knew who got all the foreign bank bailouts.  Who got the taxpayer money?   

Think of all the financial 'reforms' Congress has passed...for some reason, derivatives (gambling contracts) get paid before depositors...then taxpayers bail out the depositors.

Who bails out Main Street bookies?  Gamblers?  No one.

Why should gambler bailouts come first?

just my humble opinions