Holder's DOJ "Biggest Enabler Of Financial Crime In U.S. History"

After the MF Global collapse and news that $1.2 billion was take from customer accounts to pay margin calls to JP Morgan I wrote 10 posts on the subject. To me it seemed inevitable that Jon Corzine would be indicted. Only recently it was revealed that MF Global was a client of Attorney General Eric Holder and Assistant Attorney General Lanny Breuer’s former law firm, Covington & Burling. Records also reveal that MF Global’s trustee for the Chapter 11 bankruptcy retained as its general bankruptcy counsel Morrison & Foerester, the law firm of Associate Attorney General Tony West. With all this conflicted interest Eric Holder should have recused himself and called for a special prosecutor.

Last week it was announced that the DOJ could find no criminal behavior on honest Jon Corzine's part or for that matter anyone else at MF Global. The customers' money just vaporized. For awhile people close to the case thought DOJ might try to pin the theft on a single mother who rode the bus to work in her Chicago office since it was her job to make the actual money transfers but one suspects that might have seemed too outrageous so for now Corzine et al are off the hook. All that could change with the election of Mitt Romney where an Attorney General Chris Christie or Kelly Ayotte might be stingy with the get out of jail free cards.

Enter the White Knight, James Koutoulas, the lawyer who represents thousands of customers of MF Global. The one downside of doing business nationally is one is exposed to prosecution nationally and Koutoulas is prepared to shop his case to 50, maybe even 57 state attorney generals until he lands honest Jon Corzine in the slammer.

"And the next time a sociopath CEO says, 'Do I go out of business or do I cheat,' he's going to think about the president's biggest fundraiser in an orange jumpsuit in state prison."