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"In this world of ours, in other lands, there are some people who, in times past, have lived and fought for freedom. And they seem to have grown too weary to carry on the fight. They have sold their heritage of freedom for the illusion of a living. They have yielded their democracy.
I believe in my heart that only our success can stir their ancient hope. They will begin to know that here in America we are waging a great and successful war. It is not alone a war against want and destitution and economic demoralization. It is more than that; it is a war for the survival of democracy. We are fighting to save a great and precious form of government for ourselves and for the world...
There is a mysterious cycle in human events. To some generations much is given. Of other generations much is expected. This generation of Americans has a rendezvous with destiny."
Franklin D. Roosevelt, 1936
“I am the victim of an error of judgement.
Now that I look back, I realize that a life predicated on being obedient and taking orders is a very comfortable life indeed. Living in such a way reduces to a minimum one's need to think.”
Adolf Eichmann
“While the financial crisis destroyed careers and reputations, and left many more bruised and battered, it also left the survivors with a genuine sense of invulnerability at having made it back from the brink. Still missing in the current environment is a genuine sense of humility.”
Andrew Ross Sorkin
As a reminder, tomorrow is the March triple witch.
External Position of the Deutsche Bundesbank in the EU
Source:
Deutsche Bundesbank
I have given up any hope that we will see justice in this scandal, but I remain optimistic that the poor customers will receive close to 90 percent of their money back over time. And this seems to be the assumption behind the operations of the vulture funds, who have been recently supplied customer lists by KPMG.
While the Obama Administration and the Congress remain complacement about fraud and corruption, the risk of serious loss remains elevated across all markets in the US. I mean, it is foolish to expect anything else. The financial press has told us so. People who expect to be dealt with honestly with equal protection under the law are naive fools.
On related note, based on commentary from the financial demimonde in defense of Goldman Sachs with regard to the letter from Mr. Smith, and the obvious predatory nature of their relationship with their customers, I am wondering if there is just a problem in labeling, marketing wise. After all, as Mr. Bernanke will attest, it is all about managing expectations. And what we have here is a failure to communicate.
Perhaps Goldman can clarify the situation and change its slogan to:
"Goldman Sachs: Where the Customer Is Always Ripe."
If a restaurant placed a notice at their door saying that at every opportunity they will pad the check, shortchange the food orders, attempt to pick pockets in the lavatories, and turn a blind eye to the occaionsal mugging of customers by the wait staff, perhaps there would be less cause for complaint when the inevitable pilfering occurs.
And think of the possibilities for other businesses like automobile dealerships, food stores, and doctors offices.
Perhaps the Administration and the Congress can craft a blanket immunity in a settlement with Wall Street and all the corporations, and cover themselves as well it should be noted, by changing their nation's motto from 'E Pluribus Unum' to 'Trust No One.' That's a win-win.
At least the complaints would be more easily ignored than if these businesses pretended to honesty and adherence to the rule of law, much less aspirations to doing God's work.
The financial press seems to think that the true nature of the financial system is already well understood by sophisticated (read non-retail) banking customers. They always tend to blame the victims, don't they?
But perhaps some truth-in-advertising would alleviate the outrage of those unsophisticated rubes who foolishly maintain a misplaced confidence in the efficiency and honesty of the regulated markets and the US financial system.
Reuters
MF Global customers may see more payback
By Nick Brown
Thu Mar 15, 2012 1:43pm EDT
(Reuters) - The trustee liquidating MF Global's (MFGLQ.PK) broker-dealer is asking a bankruptcy court for permission to distribute an additional $600 million to U.S. exchange customers whose accounts were frozen when the futures broker collapsed.
Trustee James Giddens announced the plan in court papers on Thursday, saying he would also seek to distribute as much as $50 million to customers who traded on foreign exchanges, and $35 million to some customers who hold physical property such as gold bars.
Customers who trade on U.S. exchanges have already received payouts amounting to roughly $3.9 billion, or about 72 percent of the value of their accounts. The latest payouts, if approved by Judge Martin Glenn in U.S. Bankruptcy Court in Manhattan, would increase that recovery percentage to more than 80 percent, Giddens estimated.
The payouts would represent about a 10 percent payback for customers who trade on foreign exchanges, a group that has seen no recovery as of yet, Giddens estimated.
Distributions would go out on a rolling basis, the trustee said -- a departure from previous payouts, which were done in bulk. The latest round would be paid out as customer claims are processed and validated, a process that remains ongoing, Giddens said...
Here is a program based on a model implemented in several European countries, such as the UK and Ireland, with good effect.
The Official Customer Relations Guide for Wall Street's Retail Clients
If you know how to behave yourself, we won't have any awkward misunderstandings.
1. Know your place.
When your money is demanded, pay promptly and courteously, asking no needless questions or even worse, raising impertinent objections.
