'MF Global is worth more to its creditors dead than it was alive' says Fund Manger Mark Melin
Welcome to Capital Account. [Lauren blows a whistle on set] Is this what the too big to fail banks should really be worried about? A new emerging market for whistle blowers! First Greg Smith, now a congressional budget officer, who's next? Earlier this week, Greg Smith, a Goldman Sachs employee, made his resignation public on the pages of the New York Times in an op-ed, accusing his firm of "toxic" practices that put profit first at the expense of customers and possibly the US economy. And
Lan T. Pham, the CBO officer, alleges that she was fired for not accepting the wall street party line…pressured not to be so pessimistic about banking and the housing outlooks. In just one of many hard-hitting excepts from her letter, the CBO officer says "I was repeatedly pressured by the CBO Assistant Director, Deborah Lucas…not to write nor discuss issues in the banking sector and mortgage markets that might
suggest weakness in these sectors and their consequences on the economy and households…" She was encouraged to push the policies of a Morgan Stanley VP and provided Goldman Sachs analyses as well. That sounds familiar doesn't it?
Despite those who are speaking out, is there just no winning against the too big to fail banks? Remember, when judge Jed Rakoff rejected the SEC's 285 million dollar settlement with citigroup over toxic mortgage debt. It was because citigroup wasn't forced to admit liability. Well, now a federal appeals court has stopped just short of rejecting his rejection, saying he overstepped his authority. Come on! What's it going to take to see some admission of guilt for conch? And speaking of the need to admit guilt, what ever happened to Jon "the Don" Corzine? The MF Global brokerage trustee says they know where some more money is – they want to distribute another $685 million dollars to customers, while
another trustee has been asked by US lawmakers to abort his mission to pay out bonuses to MF Global executives. But just who are these trustees? We'll expose this and more.
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