Courtesy of Jesse's Cafe Americain
I do not agree with Santelli's throwaway line in the beginning that there was probably no illegality involved in JPM's trades in London, and certainly not with Facebook where it appears that there was blatantly selective leaking of undisclosed negative financial information ahead of the IPO. And the corollary suggestion that any investigations there are a waste of time.
The trades themselves *may not* have been illegal, but as in most things, the felony is in the coverup and the deception of actions that may or may not themselves have broken but merely bent the law. I will be shocked if the leaking of the financial information to select parties ahead of the Facebook IPO was not a violation of Securities law. But since these laws appear to be lightly and sporadically enforced these days, it might not matter.
But interviews with Mr. Koutoulas are so rare that any deserve to be shared, even if the interviewer steps all over the interview with selective outrage. The extended corporate infomercial is what passes for financial journalism in the States these days, and in much of the 'straight news' as well unfortunately.
I enjoyed the suggestion that almost $800 million in customer money was transferred late in the game to JPM in London to satisfy margin calls. This was the personal conclusion I put forward about two weeks after the incident.
I also believe that JPM had deep knowledge of MF Global's finanical leverage, condition, and exposure as their banker, which they used before and after the fact.
And I agree that Obama's track record on Wall Street reform is shameful, and a continuation of the Bush policies without real reform. But the idea that Romney will somehow change that is, alas, a terrible fantasy. The torch of corruption is being passed from administration to administration now without regard to party affiliation. That is how bad it has become.
How about JPM's positions in the silver market Rick? Think we need an independent investigator there too? Or only where it might be embarrassing to the Democrats without hurting Wall Street?
But as I have said before, my goal is to just get the MF Global customer money back for them. I have given up any hopes that justice will be done. So I am grateful for Mr. Santelli's attention.
