john cores and of course was a u_s_ senator and uh...
and the governor of new jersey very powerful figure within the democratic
party he also used to be the former
head of goldman sachs
he wouldn't go run m f global after he lost the governor's race chris christie
in new jersey
and uh... here and it was straight into the ground
for all disaster
they practically behind one point two
billion dollars
of customers money
he's been going in front of congress over last week
uh... both handful of course the c_e_o_ of the company
that also chief operating officer bradley abalone chief financial officer
henry seen camp
have all gone abroad congress is set
had tried to what kinds of palimony aware
we don't know anything about it i want to have fun at almost seven didn't have
any orders we did not give any orders that week intended
for people to interpret
that we should take the client bennett money that they're not supposed to take
and gamble with
on european derivatives
so it's funny how the financial geniuses
tell us that
if we go to fire them how absolutely necessary they are
and what great talents they are
and how they deserve millions of dollars in bonuses because of their financial
genius
but when it comes up find out pay weight of the money go or what did you do wrong
all the sudden their morals
don't what
don't go up towards illinois
sloop on the had
candy and whether it is said to me when there's a nuisance right
i'm pretty sure which one they actually are
so uh... so a lot of congress and they say i i don't happen but here's the
problem uh... terry stuff he was the exert chairman of cmd which is loosely
regulated by the people regulating another company m f global
says that you process my from someone who was on a call
who organises you know they're lawyers will argue is hearsay
but ed employer that map global that said
yes dont cores like actually knew what we were doing with the client's money in
that we had
taken from the funds that we were not supposed to take
so that'll be interesting in at the whole time he's weasley in for a
congress that congress everytime clarify
i did not impair
and for any of my order as i have the fact that they have
because since the press will
rely on yes this was the result of his orders
but as long as he has no intent
he cannot be found
found criminally responsible
weasels the net nth degree
what's interesting is that there
c_f_t_c_ another regulator had decided that hey wait a minute what kind of
global is doing is a little fishy here there really shouldn't take
the client's money that the m_s_ was to gamble with
and put it in the other direction everyone even entirely sure that was
happening but they thought
this something fishy going on here
let's pass the rule to make sure that they cannot do that to make an extra
clickbank
so what happens
intense lobbying
john cho resigned
who used to work with gary counselor at goma sax tear gas and now the head of
the c_f_t_c_
well by the way is a good regulator with a few good regulators
otherwise but here seems to have made
terrible mistake if you ask
to guess lobby bike or sign of course i says yeah i went in there several times
are some of our other executives went in there
to talk to regulators
but we do not intend for our lobbying to have the effect of the using up on
regulations applied to other restaurants there
so what happens its use
not the pushed out rule in they do not regulate them thanks to you know and
left mobile does that risky gambling with the client's money loses
by the way five weeks after they went bankrupt
the c_f_t_c_ ted turns running those gaps
we should have done that rule let's do it now
uh... by the way john courtside one of the biggest filers for
brocco bomb
five hundred thousand dollars at least
a bundle of money that has got a president obama in fact
this wind alert
is the guy was put on a short list of people to consider
in if tim geithner resigned as treasury secretary
which he was considering doing a little while ago
and i read the articles myself
uh... before of course he got into trouble trouble at m f global well a
genius job corps as i did was they all rolled his eyes of the senator but i
want to do a lot of money though obama administration
workers election campaigns
was being considered for our treasury secretary
he should be arrested
to take the client's money and then lose one point two billion and not to tell
anybody where it is
at is fraud
and that in fact
that's out like that
well i do not interact with the local level
now you wonder why we do it right here's a guy with a lot of money
in fact we left on the sax
hit three hundred fifty million dollars to the left the company
so why can't the rest
because
their risk actually technician makes sense if you care about no one else
so let me explain what now some say they need no longer has infinite thirty
million dollars
because the political campaigns they spend money on cuz of the
costly before city life itself
but if we're still but then you know you probably made investors have been more
on it as well so
let's just assume for the moment
they did he still has a three hundred fifty million from goldman sachs
well he point fifty billion dollars of his or money into an f_ mobile and so a
lot of the his defenders in the defenders of wall street was sick
you see that he had his own
into this saying softcore seating needed forty go wrong
eleven is speculation
if you got a three hundred fifty and you take fifty million you put in a kind of
global and you lose it all because you get crazy rest
while you still have three hundred million dollars left so that's not so
bad
remember that
leverage that heater
was thirty-two want the downside of that is that if you just have a four percent
error typically the bed goes against your four percent thank you
it sector sleazy receptive
by the goes in your direction
thirty to one
and when would mean
fifty million dollars which is that in the company
would be multiplied
by thirty times others a slightly simplistic activation but it's pretty
close
so overall he would then have
one point five billion dollars in if you have additional three hundred basically
one point
the really in doubt
so he thinks hey you know what
i take this crazy risks
if i lose i've still got three hundred million dollars in the bank yak
this coming that's been around for over a hundred years goes bankrupt
the thousand people who work or or related to this company
product the or lose their jobs would who cares about that
i'm a wall street right now
if i win i don't want to point eight million dollars
and i'm concerned parent is underway and parent dot
and ed and eight families and i can even get more campaign donations
whoever i want you to fix the regulations that might be
so why did john cours i do it that's why he did
and of course when i went wrong
he has got caught by police to defend him
but everybody else does a have a job
and those clients are out of one point two billion dollars
and our incredibly bad and they should be