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FBN’s Charlie Gasparino on reports MF Global employees were denied their stock bonuses which they could have sold before the stock was halted.
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But you don't know who Jon Corzine is he was with governor of the state of New Jersey but he also was a big weighted Goldman Sachs will then he ran MF global.
Which has now implode it happened over the weekend just as Charlie Gasparino reported it would it.
We percent of Charlie here's the question what's -- deformities and -- locals downward spiral.
The what is it the result of but also you're talking about how Charles Schwab may be sniffing around some of the -- Charles Schwab is different some of the -- but let's -- moving forward is that this is a fast breaking story we know a lot of different things happen.
Are having an and that we're going to be talking about MF global for a while not just because.
It's a midsize brokerage firm but you know the bankruptcies putting it one -- top bankruptcies ever -- mean believe it or not it's something like that aren't in the top ten.
A bankruptcies but -- also because of Jon Corzine who used a long time Wall Street player governor of New Jersey chairman of Goldman Sachs but here's some of the sort of interest of -- -- here.
On Friday apparently some employees were denied what you're gonna get stock bonuses -- really get the so the sort of with these companies gonna give them stock.
And they with -- the company withheld cup employees are our complain because at the very least.
Whenever that strike price was let's say was the market value they -- sold it for a dollar thirty share now they got nothing.
Now they got nothing to stock is -- so this is is a pretty interest in development does open up the notion.
Of potential liabilities other things are out there there is growing questions about Corzine's management and is risk management okay member interactive brokers.
Which was talking to MF global over the weekend to potentially by the firm.
They were -- they backed off one of the reasons why back -- I do they're gonna back off but one of the reasons why they say they're back -- off.
Is because of MF global exposure to the European debt crisis right how much is that well.
Here's the issue I think it's something like four billion dollars of Italy and Spain -- from what I understand what sources tell the Fox Business Network.
They were worried about other stuff.
On the balance sheet as well that this balance sheet was impaired the on the Euro exposure which is a big thing and this is where it's opening up a problem for for Corzine and his board.
Where was the risk management and what did the board know about the way Corzine was running this -- this is going to be a big issue going forward I am telling you that the story's not over particularly.
This has all the earmarks of lawsuits all over particularly on the risk side.
They did a bond issue in August right.
Where was -- disclosure of the risk.
I didn't see anything -- defendants now -- looked at the fine print we should point out that spokesman.
Spokespeople for MF global in -- -- brokers did not return phone calls or not -- -- did that they will not deny our count they they just email now you also reported Charles swap might be interested in picking up at least part of the now it's a retail PC member would MF global -- besides.
What it did with Corzine taking all that risk they were essentially on a sort of clearing house.
Broker Chile from the nymex I don't know if you just heard him he said that there were tons of lines.
Down at the nymex 'cause they shut down and I remember they cleared 445%.
Of the -- and you.
You're a futures trades now here's the -- think be clear it for institutional which Joey Hussein Joey who -- Well he just goes by -- -- because -- dot.
Don't get a steak lovers -- separate right my brother who actually set up but anyway.
-- -- New -- futures are telling her how we Ross okay so we have have been Joey Ross who spoke about the institutional -- Clearing form a mutual funds a big pension funds.
There's another side that -- clear for.
And that's retail for individuals Schwab wants -- buy that easily -- -- abide that but here's what they don't.
The -- for like almost nothing that's what the talk about why.
Because this is the problem that they have in Chapter Eleven.
Why this is probably going to be a liquidation and a couple days.
The businesses that they have that can be sold are almost worth nothing don't they they are worth people you by the people not the business.
And the people who go anywhere else well there were some 3000 employees clients to go anywhere colleges and this is you know what this is a -- -- story.
3000 employees the vast majority of them had.
Nothing to do with this just classic -- actually look at Lehman Brothers Lehman -- -- actually I'm sorry Lehman better the only thing better about this it's not systemic.
We don't they just because yeah.
I don't think your gonna torture have exposure to and well I wouldn't give people -- -- -- tell me this is.
-- OK no doubt that well because of the people JPMorgan can tell on the of this will be fine this is much ado about nothing now I don't like -- exposure.
Go for exposing themselves shortly.
