Tuesday, November 01, 2011

Obama, Corzine, and Primary Dealer MF Global

Ticker reposts a very good question from CNBC:

The bankruptcy does raise questions, however, about how the Fed picks the primary dealers -- especially since MF Global was one of four firms added to the ranks after new, more stringent requirements were put in effect in 2010.

Here's one possible answer:

President Obama is desperately putting his Wall Street stock in an unlikely old buddy.

The beleaguered president has recruited former Goldman Sachs head honcho Jon Corzine to shore up re-election funds from the banking industry, which is furious over Obama's financial regulations.

--quoting the NY Post from July '11.

By the way, MFGlobal operated in the "Highly Regulated" environment.....which pays 'regulators' very well, indeed (>$200K/year in NYC) but seems to have missed something here, no?

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