RNC Obama Corzine Book by CelesteKatz

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									My Wall Street Guy: Changing How Washington Works… One Crony At A Time                                                         12/13/11

                                                           Timeline
October 31st: Jon Corzine’s Wall Street Firm, MF Global, Filed For Bankruptcy. “Broker-dealer MF
Global, headed by former New Jersey governor and Goldman Sachs chairman John Corzine, has filed for
bankruptcy protection, apparently because of holdings of European debt.” (“Broker-Dealer MF Global Files For Bankruptcy,”
USA Today, 10/31/11)

        The Eighth Largest Bankruptcy In US History “Has Shaken Faith In The Markets.” “The case --
         the eighth-largest bankruptcy in U.S. history -- has shaken faith in the markets and put business on
         hold for many owners of the roughly 38,000 securities and commodities trading accounts at the firm,
         from big-city traders to heartland farmers.” (James O’Toole, “The MF Global Money Chase,” CNN Money, 12/6/11)
November 2nd: Jon Corzine, One Of Obama’s “Leading Wall Street Fundraisers,” Is Now “The Center Of
An FBI Investigation.” “Jon Corzine, now the center of an FBI investigation into the handling of hundreds of
millions of dollars invested in his securities firm, was one of the leading Wall Street fundraisers for
President Obama’s campaign and suggested to investors that he might take a top administration post if the
president were re-elected.” (Michael Isikoff, “Corzine, Top Obama Fundraiser, Under FBI Investigation,” MSNBC, 11/2/11)
                                                       November 4th: Corzine Resigned From MF Global And Said
                                                       He Would “Not Seek His $12 Million Severance.” “Jon S.
                                                       Corzine has resigned from his posts at the embattled
                                                       brokerage firm MF Global, the company announced on Friday.
                                                       Mr. Corzine, the firm’s chairman and chief executive, will not
                                                       seek his $12 million severance from MF Global, which filed for
                                                       bankruptcy on Monday, according to the company’s
                                                       statement.” (Ben Protess And Kevin Roose, “Corzine Resigns From MF Global,” The New
                                                       York Times’ “Dealbook,” 11/4/11)

Days After The Bankruptcy Filing, Customers Of MF Global Received Bounced Checks. “With the
mystery of the missing $600 million in customer funds at MF Global Financial still unresolved, a lot of
customers of the failed futures firm are starting to complain about getting bounced checks.” (Matthew Goldstein,
“MF Global And The Rubber Check,” Reuters, 11/5/11)

        MF Global Mailed Checks Instead Of Wiring Money To Customers Requesting Their Money
         Back As MF Global Went Bankrupt. “It appears that 10 days ago, with speculation swirling that the
         Jon Corzine-led firm would soon file for bankruptcy, a good number of customers started to put in
         requests to pull their money from the New York-based outfit. But instead of simply wiring that
         money back to their customers, it seems MF Global tried to buy some time for itself by sending that
         money back via snail mail in the form of an old-fashioned check.” (Matthew Goldstein, “MF Global And The Rubber
         Check,” Reuters, 11/5/11)

        “By The Time Customers Started Depositing Those Checks, They Were Rejected As Having
         Insufficient Funds.” “Those checks cut by the folks at MF Global began arriving in customer
         mailboxes this week, several days after the firm filed for bankruptcy on Oct. 31 in New York federal
         court. And by the time customers started depositing those checks, they were rejected as having
         insufficient funds.” (Matthew Goldstein, “MF Global And The Rubber Check,” Reuters, 11/5/11)




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My Wall Street Guy: Changing How Washington Works… One Crony At A Time                                                                  12/13/11



   Over A Month Later, Investigators Are Still Trying To Determine What Happened In
                                 MF Global’s Final Days
                                    CFTC Commissioner Says Corzine’s Firms’ “Books Are A Disaster…. We’re
                                    Trying To Figure Out What Numbers Are The Real Numbers.” “‘Their books are
                                    a disaster,’ Scott O'Malia, a commissioner at the Commodity Futures Trading
                                    Commission, one of the regulators leading a hunt that has stretched 10 days so far,
                                    said in an interview. ‘We're trying to figure out what numbers are the real
                                    numbers.’” (Scott Patterson And Aaron Lucchetti, “Inside The Hunt For MF Global Cash,” The Wall Street Journal,
                                    11/11/11)

                                    Routine Financial Information “Took Hours To Produce” When It “Should Be
                                    Accessible Instantly.” “An executive at another company that considered making a
                                    bid for parts of MF Global as it was going downhill said officials at his firm ‘couldn't
                                    get a good sense of what was on the balance sheet.’ Routine information about
                                    assets and positions on MF Global's books took hours to produce, the executive
                                    said. Such information should be accessible instantly, he added.” (Scott Patterson And Aaron
                                    Lucchetti, “Inside The Hunt For MF Global Cash,” The Wall Street Journal, 11/11/11)

CFTC Commissioner Says Corzine’s Firm “Haven’t Been Cooperative.” “CFTC Commissioner Bart Chilton
disputed how much help regulators are getting from MF Global. Efforts to get information from the firm
since the bankruptcy filing have been ‘difficult and disappointing,’ he said. ‘I think they haven't been
cooperative,’ Mr. Chilton added in an interview.” (Scott Patterson And Aaron Lucchetti, “Inside The Hunt For MF Global Cash,” The Wall
Street Journal, 11/11/11)

         “He Compared Efforts To Locate The Missing Money To ‘A Magical Mystery Tour.’” (Scott Patterson
          And Aaron Lucchetti, “Inside The Hunt For MF Global Cash,” The Wall Street Journal, 11/11/11)

“Former New Jersey Governor Jon Corzine’s Former Brokerage Firm Was Engaged In Activity That
Was ‘Either Nefarious Or Illegal,’ Said A U.S. Futures Regulator On Tuesday.” (Tim Mak, “Regulator: Corzine Firm
‘Nefarious,’” Politico, 11/15/11)

         Bart Chilton, CFTC Commissioner: “The money should be there, it’s not. That money should be
          sacrosanct. It’s really troubling.” (Tim Mak, “Regulator: Corzine Firm ‘Nefarious,’” Politico, 11/15/11)
                                                           Failing Its Employees
Former Employees Are Suing Jon Corzine And Other MF Global Executives For Lying About The
Company’s Finances, And Encouraging “Workers To Put Their Retirement Savings Into Company
Stock That Later Plummeted.” “Two former employees of failed brokerage MF Global have sued its top
executives and directors, including ex-CEO Jon Corzine, the former governor and senator from New Jersey.
The two employees say the executives lied about MF Global’s finances and encouraged workers to put their
retirement savings into company stock that later plummeted.” (“2 Former MF Global Employees Sue Corzine, Other Executives; Say
They Made False Statements,” The Associated Press, 12/5/11)

In 2010, MF Global Cut Employee Take-Home Pay And Put The Difference In Company Stock Which Is
Now “Almost Worthless.” “Early last year, MF Global floor broker Todd Thielmann received a notice in the
mail that his take-home pay would be cut by 10%, with the money diverted to a fund for employees to own
restricted stock in the firm. The timing couldn't have been worse. Less than two years later, the stock is
almost worthless. Mr. Thielmann, who traded grain futures and options in Chicago, was one of 1,121 MF
Global employees who were required to participate in the company's revised compensation policy, starting
in February 2010.” (Christian Berthelsen, “MF Global Staff Bitten By Pay Plan,” The Wall Street Journal, 12/2/11)
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My Wall Street Guy: Changing How Washington Works… One Crony At A Time                                                           12/13/11

          “The Pay-Policy Changes Went Into Effect A Month Before Mr. Corzine Joined The Company,
           But He Appeared To Embrace Them.” (Christian Berthelsen, “MF Global Staff Bitten By Pay Plan,” The Wall Street Journal,
           12/2/11)

The Change In Pay Structure Saved MF Global $58 Million. “By getting employees to receive a portion of
their income in stock, the company saved nearly $58 million on cash compensation over its last two fiscal
years, according to its annual financial statements.” (Christian Berthelsen, “MF Global Staff Bitten By Pay Plan,” The Wall Street Journal,
12/2/11)

After The Bankruptcy Filing, MF Global Employees Lost $113.5 Million. “At the time of the bankruptcy
filing, 15.9 million employee shares were tied up in the program and, while the revised policy was in effect,
the shares traded at an average price of $7.27. With shares now trading around 13 cents, that translates to
an estimated collective loss of $113.5 million.” (Christian Berthelsen, “MF Global Staff Bitten By Pay Plan,” The Wall Street Journal,
12/2/11)

                                                          Failing Its Customers
“The $5.4 Billion In Total Customers' Cash Wasn't All Segregated, As It Should Have Been.” (Bill Rochelle,
“MF Global, Lehman, AMR, Solyndra, L.A. Dodgers: Bankruptcy,” Bloomberg, 11/1/11)

“Federal Regulators Are Investigating Whether MF Global, As Its Financial Condition Worsened,
Tapped Client Funds That Were Supposed To Be Kept Safe In Strictly Segregated Accounts.” (Steve
Karnowski, “Shock Waves From MF Global Collapse Felt On Farms,” The Associated Press, 12/4/11)

          “They're Also Trying To Determine What Became Of The Money — It's Not Clear If The Cash Is
           Parked Somewhere Or If It's Gone.” (Steve Karnowski, “Shock Waves From MF Global Collapse Felt On Farms,” The Associated
           Press, 12/4/11)

Up To $1.2 Billion Is Missing From Customers Of Jon Corzine’s Firm. “The court-appointed trustee
overseeing MF Global's bankruptcy says up to $1.2 billion is missing from customer accounts, double what
the firm had reported to regulators last month.” (Marcy Gordon, “MF Global Trustee Says $1.2B Or More Missing,” The Associated Press,
11/21/11)

If The Money Was Accidentally Put In The Wrong Account, It Would Already Have Been Discovered.
“’If this had been simply an accident where the money had been put in a wrong account, that should have
been discovered by now,’ said Ed Ketz, an accounting professor at Penn State University.” (James O’Toole, “The MF
Global Money Chase,” CNN Money, 12/6/11)

Which Means Either MF Global Had “Extremely Poor Accounting Controls” Or “Unlawfully
Appropriated” The Money. “He said that leaves two possibilities: Either MF Global had ‘extremely poor
accounting controls’ and is unable to track down the money, or the funds were unlawfully appropriated.”
(James O’Toole, “The MF Global Money Chase,” CNN Money, 12/6/11)

          “In The Latter Scenario, Staff From MF Global Could Potentially Face Criminal Charges,
           And The FBI Is Now Investigating The Case.” (James O’Toole, “The MF Global Money Chase,” CNN Money, 12/6/11)
“The Money May Be Gone Forever” If MF Global Used
It To Cover Losses On Its Own “Risky Bets.” “It is
unclear what MF Global did with this money or whether it
can be recovered. Investigators are checking whether MF
Global used some of the cash to pay off its own debts,
which means the money could be sitting in an account at
another firm. But if the firm used it to cover losses on
some of its risky bets, the money may be gone forever.”


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My Wall Street Guy: Changing How Washington Works… One Crony At A Time                                                               12/13/11
(Ben Protess, “MF Global Is Said To Have Used Customer Cash Improperly,” The New York Times, 11/17/11)

“‘The Longer It Goes Without Anyone Finding The Money, The Odds Go Up That The Money Is Out The
Door,’ Said Craig Pirrong, A Finance Professor At The University Of Houston.” (Scott Patterson And Aaron Lucchetti,
“Inside The Hunt For MF Global Cash,” The Wall Street Journal, 11/11/11)

                                                  Sending Ripples Across America
“The Havoc Wreaked” By The Failure Of Jon Corzine’s MF Global Is Rippling Through The Farm Belt.
“The havoc wreaked by MF Global's bankruptcy filing has been felt not just by Wall Street investors and
traders, but also by wheat and corn growers, cattle ranchers and pig farmers. Dotting the farm belt, many
who used the commodities market to protect against price swings are finding their money locked up and
their hedges unwound due to the firm's downfall.” (Jerry A Dicolo And Dan Strumpf, “MF Global Collapse Felt In Farm Country,” The Wall
Street Journal, 12/7/11)

         Farmers, Ranchers And Rural Businesses Were The Hardest Hit By MF Global’s Failure And
          The Investigations Following The Bankruptcy. “Farmers, ranchers and rural businesses such as
          grain elevators and feed mills were among the hardest hit when they were cut off from the cash in
          their hedging accounts at MF Global, which sought bankruptcy protection in October after making a
          disastrous bet on European government debt. The number of people harmed and the extent of their
          losses isn't clear yet.” (Steve Karnowski, “Shock Waves From MF Global Collapse Felt On Farms,” The Associated Press, 12/4/11)
                                                         “MF Global's Demise Upended A System That Had Quickly
                                                         Resolved Most Earlier Brokerage Failures.” “Capitol Hill has been
                                                         flooded by calls and letters from farmers, farm-industry groups and
                                                         others demanding help, as well as answers on why MF Global's
                                                         demise upended a system that had quickly resolved most earlier
                                                         brokerage failures.” (Jerry A Dicolo And Dan Strumpf, “MF Global Collapse Felt In Farm
                                                         Country,” The Wall Street Journal, 12/7/11)

                                                         MF Global’s Fallout Has Left Some Farmers In A “Cash Crunch.”
                                                         “In the latest sign of how MF Global's failure is continuing to cascade
                                                         across the commodity industry, Tofteland and other farmers who
                                                         have yet to recover more than a third of their money from the
                                                         bankrupt broker now find themselves in a cash crunch that risks
                                                         rippling far beyond the futures market.” (Tom Polansek, “MF Global Fallout
                                                         Delays U.S. Farm Seed, Land Deals,” Reuters, 12/6/11)

         The Failure Had Immediate Effects On Farmers’ Financial Positions. “The bankruptcy had an
          immediate impact on farmers' abilities to hedge their crops at grain exchanges. Many had to liquidate
          positions or put up additional cash to meet margin calls after their accounts were transferred from
          MF Global to other brokerages.” (Tom Polansek, “MF Global Fallout Delays U.S. Farm Seed, Land Deals,” Reuters, 12/6/11)
         “Some Farmers Have Had To Postpone Purchases Of Land Or Equipment.” (Tom Polansek, “MF Global
          Fallout Delays U.S. Farm Seed, Land Deals,” Reuters, 12/6/11)

“Now, The Collapse Has Begun To Impact Farm Decisions That Can Directly Affect Output.” (Tom Polansek,
“MF Global Fallout Delays U.S. Farm Seed, Land Deals,” Reuters, 12/6/11)

         “Farmers Worry The Cost Of Doing Business Could Go Up Permanently Due To The Increased
          Risk Of Keeping Money In Segregated Accounts, Making It More Expensive To Produce Crops.”
          (Tom Polansek, “MF Global Fallout Delays U.S. Farm Seed, Land Deals,” Reuters, 12/6/11)

More Than 100 Minnesota Farmers Have Had Their Money Frozen Due To MF Global’s Collapse.
“Magnuson is among more than 100 Minnesota farmers estimated to have assets frozen as a result of MF
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My Wall Street Guy: Changing How Washington Works… One Crony At A Time                                                12/13/11

Global's bankruptcy filing and an estimated $1.2 billion in missing customer funds.” (Jim Spencer, “MF Global Woes
Ripple Into Heartland,” Star Tribune, 12/1/11)

         Farmers And Grain Storage Businesses In Minnesota “Find Themselves With The Potential Of
          Losing Millions.” “Bob Zelenka, executive director of the Minnesota Grain and Feed Association,
          estimated that between 25 and 30 grain storage facilities and nearly 100 producers in Minnesota
          alone have accounts through MF Global that are now inaccessible. ‘There's a number of businesses,
          whether it's a producer or a [grain] elevator, whose futures really are at stake here,’ Zelenka said.
          ‘They did everything right, but all of the sudden, they find themselves with the potential of losing
          millions.’” (James O’Toole, “Farmers Caught Up In MF Global Failure,” CNN Money, 11/23/11)
         They Thought Their Money Was Safe In Segregated Accounts. “When MF Global declared
          bankruptcy, farmers like Magnuson and Dean Tofteland, who raises pigs and grows corn and
          soybeans in Luverne, Minn., thought they were safe. They had been told their money was held in
          ‘segregated’ accounts to be invested only in their best interest. Unfortunately, this didn't protect
          Magnuson, Tofteland or thousands of farmers and ranchers nationwide from MF Global's suspect
          investments.” (Jim Spencer, “MF Global Woes Ripple Into Heartland,” Star Tribune, 12/1/11)
Over 100 Iowans Are Still Waiting For Their Money. “Ries, whose family still operates farms in the area,
said he sent a letter to more than 100 aggrieved clients who have been waiting for their money since MF
Global filed for bankruptcy.” (Lauren Tara Lacapra, “Iowa Farmers Feel Ripples Of MF Global Bankruptcy,” Reuters, 11/4/11)
         The Local Broker Was Unable To Get Concrete Information From MF Global On When The
          Funds Would Be Available. “Reis said calls to MF Global offices have mostly been met by busy
          signals. When he reached representatives on the phone, they were unable to provide him with any
          concrete information on when his clients' money would be available.” (Lauren Tara Lacapra, “Iowa Farmers Feel
          Ripples Of MF Global Bankruptcy,” Reuters, 11/4/11)

Hog Producers In Minnesota And Wisconsin Could Have Lost Over $40 Million. “Hog producers who
rode out tough years in 2008 and 2009 came to rely heavily on risk management tools and were starting to
lock in some pretty good profits before MF Global collapsed, said Mark Greenwood, a senior vice president
and swine expert at AgStar Financial Services, which serves farmers mainly in Minnesota and Wisconsin.
Greenwood estimates that about half of the hog producers his company serves have been affected, with
combined losses probably more than $40 million. The 300 to 400 clients have individual losses of $50,000 to
over $1 million, he said.” (Steve Karnowski, “Shock Waves From MF Global Collapse Felt On Farms,” The Associated Press, 12/4/11)
                                                                Why It Failed
“MF Global Was Brought Down Primarily By Billions Of Dollars In
Investments In Bonds From Troubled European Nations, A Move That
Was Reportedly Pushed By Corzine.” (Peter Schroeder, “The Fall Of ‘Key Man’ Corzine,” The
Hill, 12/6/11)

         Corzine Bet $11.5 Billion On European Debt, But Didn’t Disclose
          All Of It To Investors. “Jon Corzine bet $11.5 billion on European
          sovereign debt in his bid to rebuild profits at MF Global Holdings
          Ltd., almost twice the net amount disclosed to investors, and relied
          on short-term hedges that left the firm exposed to larger losses if
          they couldn’t be rolled over.” (Miles Weiss, Cristina Alesci and Matt Leising, “Corzine
          Pushed Bet On Europe Debt To $11.5B,” Bloomberg, 11/29/11)

Michael Roseman, The Chief Risk Officer, Said MF Global Couldn’t “Withstand The Risks Of Its
Position In” European Bonds. “The executive, Michael Roseman, whose title was chief risk officer, also
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My Wall Street Guy: Changing How Washington Works… One Crony At A Time                                                                      12/13/11

expressed concerns directly to Mr. Corzine in meetings of just the two men and with other people present,
people familiar with the situation said. Mr. Roseman contended MF Global didn't have enough spare cash to
withstand the risks of its position in bonds of Italy, Spain, Portugal, Ireland and Belgium. He also presented
gloomy hypothetical scenarios of what could happen if MF Global's credit rating was downgraded because of
the exposure.” (Aaron Lucchetti and Julie Steinberg, “Corzine Rebuffed Internal Warnings On Risks,” The Wall Street Journal, 12/6/11)
         Corzine Brushed Aside The Warnings And Threatened To Quit If His Judgment Was
          Questioned. “The CEO suggested to board members earlier this year that he might leave the
          company if they didn't trust his judgment about the bet, according to people familiar with the
          matter.” (Aaron Lucchetti and Julie Steinberg, “Corzine Rebuffed Internal Warnings On Risks,” The Wall Street Journal, 12/6/11)
MF Global Bought European Sovereign Debt Financed Through “Repurchase Agreements.” “Starting in
late 2010, MF Global began to accumulate short-term sovereign debt of countries like Italy, Spain and
Portugal. MF Global financed these purchases through complex transactions known as repurchase
agreements.” (Azam Ahmed And Ben Protess, “As Regulators Pressed Changes, Corzine Pushed Back, And Won,” The New York Times’ “Dealbook,” 11/3/11)
         Lehman Brothers Used “Another Little-Known Repurchase Agreement” To “Obscure Billions
          Of Dollars In Losses.” “In September 2008, Lehman collapsed amid a global financial crisis. It later
          was disclosed that Lehman’s use of another little-known repurchase agreement allowed it to
          temporarily obscure billions of dollars in losses.” (Azam Ahmed And Ben Protess, “As Regulators Pressed Changes, Corzine
          Pushed Back, And Won,” The New York Times’ “Dealbook,” 11/3/11)

                                                         Battles With Regulators
Last Week, The CFTC Approved The “MF Global Rule” Which Would Bar Wall Street “From Using
Client Funds To Buy Foreign Sovereign Debt.” “Federal regulators approved tougher constraints on Wall
Street risk-taking on Monday, adopting the ‘MF Global rule,’ named after the collapsed brokerage firm that is
believed to have improperly used hundreds of millions of dollars of customer money. The new rule will limit
how the brokerage industry can invest customer money, largely barring firms from using client funds to buy
foreign sovereign debt. It also prevents a complex transaction that allowed MF Global, in essence, to borrow
money from its own customers.” (Ben Protess, “Regulator Approves ‘MF Global Rule,’” The New York Times’ “Dealbook,” 12/5/11)
         “MF Global Violated That Principle In Its Final Chaotic Days, Tapping Its Segregated Client
          Accounts To Meet Its Own Financial Obligations, People Briefed On The Matter Have Said.” (Ben
          Protess, “Regulator Approves ‘MF Global Rule,’” The New York Times’ “Dealbook,” 12/5/11)

The CFTC Proposed The Rule In October 2010, But “Met A Powerful Roadblock In Mr. Corzine.” “Mr.
Gensler’s agency initially proposed the crackdown in October 2010, and neared a vote on the plan this
summer. But at the time, the agency met a powerful roadblock in Mr. Corzine, former Democratic governor
of New Jersey.” (Ben Protess, “Regulator Approves ‘MF Global Rule,’” The New York Times’ “Dealbook,” 12/5/11)
Corzine Launched An “Aggressive Lobbying Campaign”
And Delayed The Rule From Taking Effect. “Mr. Corzine’s
efforts culminated on July 20, as MF Global executives were on
four different calls with the agency’s staff. Mr. Corzine
personally participated in two of those calls. Ultimately, the
aggressive lobbying campaign helped delay the proposal.” (Ben
Protess, “Regulator Approves ‘MF Global Rule,’” The New York Times’ “Dealbook,” 12/5/11)

Corzine Lobbied Personally On MF Global’s Behalf Against
The Rule. “While other financial firms employed teams of
lobbyists to fight the new regulation, MF Global’s chief
executive in meetings over the last year personally pressed
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My Wall Street Guy: Changing How Washington Works… One Crony At A Time                                                               12/13/11

regulators to halt their plans.” (Azam Ahmed And Ben Protess, “As Regulators Pressed Changes, Corzine Pushed Back, And Won,” The New York
Times’ “Dealbook,” 11/3/11)

         Corzine Argued That The Rule Would Be Aimed At Fixing “Something That Is Not Broken.”
          “The rules were unnecessary, Mr. Corzine said, because federal laws already prevented brokerage
          firms from mixing client money with company funds. In a letter, MF Global insisted to regulators that
          they were trying to ‘fix something that is not broken.’” (Ben Protess, “Regulator Approves ‘MF Global Rule,’” The New York
          Times’ “Dealbook,” 12/5/11)




                                        Corzine Was Battling With A Close Friend
'“MF Global Also Shows How This New Era Of Regulatory Power Puts A Premium On Political
Connections.” (Editorial, “Mr. Corzine And His Regulators,” The Wall Street Journal, 12/1/11)
                                                                               The CFTC’s Chairman Is Gary Gensler, Who
                                                                               Worked For Corzine When They Worked At
                                                                               Goldman Sachs. “Leading the government’s
                                                                               effort to curtail these arcane practices
                                                                               was Gary Gensler, the chairman of C.F.T.C.,
                                                                               who had worked for Mr. Corzine at Goldman
                                                                               Sachs. Mr. Gensler pushed for the proposed
                                                                               change in October 2010, and planned to bring
                                                                               it to a vote this summer.” (Azam Ahmed And Ben Protess,
                                                                               “As Regulators Pressed Changes, Corzine Pushed Back, And Won,” The
                                                                               New York Times’ “Dealbook,” 11/3/11)

                                                                                       “Both Men Are Active Democrats,
                                                                                        And Served On Financial Panels
                                                                                        Together Recently.” (Azam Ahmed And Ben
                                                                                        Protess, “As Regulators Pressed Changes, Corzine Pushed
                                                                                        Back, And Won,” The New York Times’ “Dealbook,” 11/3/11)

                                                                                   “Speaking At A Princeton University
          Conference Last Year On The Day Before Corzine's Wedding, Gensler Described Working With
          Corzine As A ‘Privilege.’” (Daniel Wagner, “MF Global’s Regulator Has Ties To Company’s Leader,” The Associated Press, 11/3/11)
“When Corzine Ran For New Jersey Governor, Gary Gensler Gave $10,000 To The State Democratic
Party, Which Was Trying To Get Corzine Elected.” (Daniel Wagner, “MF Global’s Regulator Has Ties To Company’s Leader,” The
Associated Press, 11/3/11)

Gensler Has Given Over $102,000 Since The 2008 Cycle, All To Democrats. (Center For Responsive Politics, Open
Secrets, Accessed 11/4/11)

         Including The Legal Maximum, $4,600, To Obama In 2008. (Center For Responsive Politics, Open Secrets, Accessed
          11/4/11)

Gensler’s “Long And Deep Ties To Corzine” Had Experts Believing He Has A Conflict Of Interest. “But
Gensler's long and deep ties to Corzine pose an apparent conflict of interest that could taint the probe's
findings, experts say. Some say he should remove himself from the case.” (Daniel Wagner, “MF Global’s Regulator Has Ties To
Company’s Leader,” The Associated Press, 11/3/11)

         Gensler Recused Himself From Investigating Corzine’s Firm. “A regulator says he withdrew from
          an investigation of Jon Corzine's collapsed securities firm to avoid being a ‘distraction.’ Gary Gensler,
          chairman of the Commodity Futures Trading Commission, said Monday that the CFTC has "excellent
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My Wall Street Guy: Changing How Washington Works… One Crony At A Time                                                                12/13/11

          career staff" to handle such cases.” (Eileen AJj Connelly And Daniel Wagner, “Geensler Explains Recusal From Mf Global Probe,” The
          Associated Press, 11/7/11)

“A Former Corzine Staffer, Steven Adamske, Currently Serves As The CFTC Public Affairs Director.”
(Nancy Watsman, “Corzine’s MF Global Pushed Regulators To Use Client Funds,” The Huffington Post, 11/4/11)

                                                           Congressional Hearings
December 8: Jon Corzine Testified Before The House Of Representatives, Saying: “I Simply Do Not
Know Where The Money Is, Or Why The Accounts Have Not Been Reconciled To Date.”(Jon S. Corzine,
Committee On Agriculture, U.S. House Of Representatives, Testimony, 12/8/11)

“Faced With A Barrage Of Questions, Corzine Sometimes Hesitated In His Answers But Didn't Invoke
His 5th Amendment Privilege Against Self-Incrimination.” (Kim Geiger, “Jon Corzine Tells House Panel Of 'Stunned Disbelief,’”
Los Angeles Times, 12/8/11)

Corzine Was Repetitive In Saying He “Never Intended To Break Any Rules,” “But He Could Not Say It
Hadn't Happened.” “Responding to repeated questioning from frustrated lawmakers, Corzine said he ‘had
no intention to ever authorize the transfer of segregated monies,’ but he could not say it hadn't happened.”
(Kim Geiger, “Jon Corzine Tells House Panel Of 'Stunned Disbelief,’” Los Angeles Times, 12/8/11)

Gillian Tett: “Isn't that a great quote? ‘I simply do not know where
the money is’. At this point he's presenting himself as an idiot or
a criminal in some way, and he's gone for the idiot choice.” (MSNBC’s
“Morning Joe,” 12/9/11)

         MSNBC’s Willie Geist: “It just defies belief, though, that the CEO
          doesn’t know where 1.2 billion dollars is.” (MSNBC’s “Morning Joe,”
          12/9/11)

Three Congressional Panels Have Subpoenaed Jon Corzine. “A third
Congressional panel has unanimously agreed to subpoena Jon Corzine to testify about the bankruptcy of MF
Global.” (Peter Schroeder, “Committee Issues Third Subpoena For Corzine,” The Hill, 12/7/11)
         “This Isn’t The Usual Way A Former U.S. Senator Returns To Capitol Hill -- On The Receiving
          End Of A Subpoena.” (Robert Schmidt, “Once-Ascendant Corzine Returns To Congress As Suspect In MF Global Failure,” Bloomberg,
          12/8/11)

Corzine Is The First Former Member Of Congress “Forced To Testify Before His Peers Since 1908.”
“Corzine, a Democrat, represented New Jersey in the Senate from 2001 to 2005. He later served as the
state’s governor. This would be the first time a member of Congress has been forced to testify before his
former peers since 1908.” (“Senate Panel Votes To Subpoena Corzine To Testify On Role Leading Failed MF Global,” The Associated Press, 12/6/11)
                                                        Obama’s “Wall Street Guy”
President Obama: Corzine Is “Our Wall Street Guy.” “The rollout also provided a showcase for Corzine,
the former Goldman Sachs CEO whom Obama referred to as ‘our Wall Street guy’ at a meeting of Democratic
governors in Chicago on Friday.” (Claire Heininger, “Corzine Profile Rises In Obama Camp,” The Star-Ledger (NJ), 6/23/08)
         Obama: “First of all, I'm going to have a lot to say about this guy, but I just want everybody to know
          that one of my earliest supporters, somebody who had faith and confidence in me before I was a
          United States senator was the man standing next to me right here -- Jon Corzine.” (President Barack Obama,
          “Remarks By The President At Luncheon Fundraiser With Governor Jon Corzine,” Holmdel, New Jersey, 7/16/09)


         Obama: “I'm among a lot of friends and I, first of all, obviously want to thank Jon and Sharon for
          hosting us in this extraordinary venue. These guys have been just great friends from the start. Some
                                                          9
My Wall Street Guy: Changing How Washington Works… One Crony At A Time                                                   12/13/11

          of you know that Jon was a big supporter of mine in my first U.S. Senate race when nobody could
          pronounce my name.” (President Barack Obama, “Remarks By The President At A DNC Event, New York, New York, 4/28/11)
In The Early Days Of The Obama Administration, Biden “Literally” Called Jon Corzine For Advice On
The Economy Because “He Knew About The Economy … And We Trusted His Judgment.” “‘I literally
picked up the phone and called Jon Corzine and said Jon, what do you think we should do,’ Biden said. ‘The
reason we called Jon is that we knew that he knew about the economy, about world markets, how we had to
respond, unlike almost anyone we knew. It was because he had been in the pit -- because he had been in the
furnace. And we trusted his judgment.’ (Conor Friedersdorf, “Obama’s Team Relied On Jon Corzine For Economic Advice,” The Atlantic,
11/14/11)

         Watch Biden Say The Obama Team Relied On Corzine For Economic Advice




                                              Corzine Helped Craft The Stimulus
President Obama: “Jon Corzine wasn't just the first governor to pass an economic recovery plan for his
state; he was an ally with the Obama administration in helping us develop a national recovery plan.” (President
Obama, “Remarks By The President At New Jersey Rally For Governor Jon Corzine,” Holmdel, NJ, 7/16/09)

         Watch Obama’s Comments Here
Vice President Biden: “It’s not coincidental that that’s what the Recovery Act is. Jon Corzine helped craft
the Recovery Act. It’s not coincidental that the things he did here turned out to be the exact same things the
recovery act has because way back in the transition period before we were sworn in, when Barack Obama
and I were literally sitting at a desk in a high rise in Chicago beginning to plan how we would try to get this
economy out of a ditch, literally the first guy I called was Jon Corzine. Not a joke. Not a joke. Because first of
all, he’s the smartest guy I know in terms of the economy and on finance.” (Vice President Biden, Speech In New Jersey,
5/7/11)

         Biden: “If you need any evidence of whether or not what I’m telling you is accurate, look at the
          recovery efforts of New Jersey and you can mirror them, they just fall right on top of what we’re
          doing. And so Jon, thank you, thank you, thank you.” (Vice President Biden, Speech In New Jersey, 5/7/11)
         Watch Biden Say That Corzine “Helped Craft” The Stimulus

                       And Was Possibly Obama’s Next Pick For Treasury Secretary
“Just Months Ago Corzine, A Democrat, Was Seen As A Possible Successor To Treasury Secretary
Timothy Geithner.” (Peter Schroeder, “The Fall Of ‘Key Man’ Corzine,” The Hill, 12/6/11)

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My Wall Street Guy: Changing How Washington Works… One Crony At A Time                                                   12/13/11

Corzine’s Firm Issued “Highly Unusual” Securities Which Promised To Pay A Higher Interest Rates If
Corzine Was Appointed And Confirmed To A “Federal Position By The President Of The United
States.” “Just a few months after that event, Corzine’s firm, MF Global, surprised many Wall Street investors
by issuing highly unusual securities notes that appeared to highlight Corzine’s close relationship with the
White House: The notes suggested that the former New Jersey governor might be in line for a top
administration post should the president get re-elected. The notes promised to pay an extra 1% in interest
rates in the event of ‘the departure of Mr. Corzine as our full time chief executive officer due to his
appointment to a federal position by the President of the United States and his confirmation…by the United
States Senate prior to July 1, 2013.’” (Michael Isikoff, “Corzine, Top Obama Fundraiser, Under FBI Investigation,” MSNBC, 11/2/11)

                                          Obama Campaign’s Wall Street Liaison
Jon Corzine Has Bundled Over $500,000 For Obama’s Reelection Campaign. (Center For Responsive Politics,
Opensecrets.Org, Accessed 10/31/11)

        Obama’s Campaign Says It Would Return Corzine’s
         Donations If He Is Charged With Wrongdoing.
         “President Barack Obama's re-election campaign would
         return the donations made by embattled MF Global
         chief Jon Corzine if he were charged with any
         wrongdoing, a campaign official said on Wednesday.”
         (Kim Dixon And David Ingram, “Obama Campaign May Return From MF Global
         Corzine,” Reuters, 11/2/11)

        But They Say They Will Only Return Corzine’s
         Individual Donations, Not All Bundled
         Contributions. “An Obama campaign official, speaking
         on condition of anonymity, said the donations received
         from Corzine as an individual would be returned if civil
         or criminal charges are brought against him.” (Kim Dixon
         And David Ingram, “Obama Campaign May Return From MF Global Corzine,”
         Reuters, 11/2/11)

Corzine Has Given $5,000, The Legal Maximum, To Obama’s Campaign. (Center For Responsive Politics,
opensecrets.org, Accessed 11/3/11)

        Corzine Has Also Given $30,800 To The DNC. (Center For Responsive Politics, opensecrets.org, Accessed 11/3/11)
        “Corzine Has Also Donated $15,000 To The Democratic Congressional Campaign Committee
         This Year And $25,000 To Senate Democrats In 2010, According To Regulatory Filings.” (Kim
         Dixon And David Ingram, “Obama Campaign May Return From MF Global Corzine,” Reuters, 11/2/11)

Corzine Played A “Central Role” In Obama’s Wall Street Fundraising Efforts. “His new legal troubles,
sparked by the bankruptcy filing of his investment firm, MF Global, could complicate the president’s efforts
to raise money from the financial community given Corzine’s central role in those efforts.” (Michael Isikoff, “Corzine,
Top Obama Fundraiser, Under FBI Investigation,” MSNBC, 11/2/11)

“Corzine Has Already Held A High-End Fundraiser And Organized A Secret Meet-And-Greet Between
Finance Executives And Obama’s New Chief Of Staff.” (Peter Stone, Elizabeth Lucas, John Aloysius Farrell, Paul Abowd and Rachael
Marcus, “Obama Campaign Reports More Than 350 Big Bundlers, Including Solyndra Figures,” Iwatch News, 10/14/11)

Corzine Co-Hosted A Wall Street Fundraiser For Obama In April. “President Obama's first New York
event since he declared his reelection will be at the home of former New Jersey Gov. Jon Corzine, the former
Goldman Sachs financier who will host a high-dollar, small dinner, an invitation to the event shows. Tickets

                                                                          11
My Wall Street Guy: Changing How Washington Works… One Crony At A Time                                                           12/13/11

to the event, which sources said Corzine is co-hosting with another financier, longtime Obama backer Orin
Kramer and his wife, cost $35,800 per person.” (Maggie Haberman, “Obama Fundraiser At Corzine Home,” Politico, 4/5/11)
        The Fundraiser Was Part Of Obama’s Efforts “To Soothe Frayed Relations” With Wall Street.
         “The choice of Corzine's home is notable, given his ties to the financial sector. The White House has
         made efforts in recent months to soothe frayed relations with the business community, after an
         election cycle during which some donors, unhappy with the push for Wall Street reform, claimed to
         be sitting on their hands.” (Maggie Haberman, “Obama Fundraiser At Corzine Home,” Politico, 4/5/11)
Jon Corzine Attended Obama’s Blue Room Meeting With Wall Street Donors. (Josh Gerstein, “All At DNC Blue Room
Meeting With Obama Were Donors, Politico’s “Under The Radar,” 6/26/11)

        Just Before Announcing For Reelection, Obama Brought Two Dozen Wall Street Executives
         And Longtime Donors To The White House For A Blue Room Meeting. “A few weeks before
         announcing his re-election campaign, President Obama convened two dozen Wall Street executives,
         many of them longtime donors, in the White House’s Blue Room.” (Nicholas Confessore, “Obama Seeks To Win Back Wall
         St. Cash,” The New York Times, 6/12/11)

        Obama “Opened The Floor” For The Donors To Talk To Him “On Hot Issues.” “The guests were
         asked for their thoughts on how to speed the economic recovery, then the president opened the floor
         for over an hour on hot issues like hedge fund regulation and the deficit.” (Nicholas Confessore, “Obama Seeks To
         Win Back Wall St. Cash,” The New York Times, 6/12/11)

        The Meeting Was Organized By The Democratic National Committee To Try To “Win Back”
         Wall Street, One Of Obama’s Main Sources Of Campaign Cash. “The event, organized by the
         Democratic National Committee, kicked off an aggressive push by Mr. Obama to win back the
         allegiance of one of his most vital sources of campaign cash — in part by trying to convince Wall
         Street that his policies, far from undercutting the investor class, have helped bring banks and
         financial markets back to health.” (Nicholas Confessore, “Obama Seeks To Win Back Wall St. Cash,” The New York Times, 6/12/11)




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                                                             Washington D.C. 20003
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