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FBN's Charlie Gasparino on Jon Corzine being subpoenaed to appear before the House Agriculture Committee on MF Global.
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And gold as well from the -- the call -- it's amazing we've gained 800 points this week alone don't adapt to -- -- biggest week we've had really since the recession ended this is bull market via.
-- -- All right former MF global CEO Jon Corzine's been keeping a low profile since the declared bankruptcy.
But he's soon to be outed by congressional house committee big question is will he testified Charlie desperate as the latest attack waiting -- SA -- -- -- testify.
This is the another could in this at this -- the third committee to be looking at the MF global implosion the bankruptcy of -- -- -- -- which -- -- -- November 1.
The question is will he testify he's being called he was a CEO's the guidance at the risk strategy I would say this his lawyers are not come I think they're not.
They're not saying a word they will not return our phone calls but we did speak to some prominent white collar attorneys.
Here's what they have to say he should not testify this could be a perjury trap remember.
It's all pain no gain for Corzine he goes in there they're gonna throw bunch of questions anything he says can will be used -- -- -- in the quarterly.
And -- and -- Corzine did anything wrong with that's what the perjury trap is all about.
They don't get you on what they're investigating you about but they get you and an inconsistency about something else and that's what he that's what he.
That's what he faces and we've talked to a 45 lawyers in the last couple -- prominent white collar attorneys.
He's likely to take the fifth he shows up and now what does this mean.
This is where becomes a more of a political issue -- -- a legal issue I mean you know was that he could take the fifty -- -- you know found innocent did not -- charges -- gets in the criminal charges -- against him.
About what happened MF global including as you know that missing money -- -- still got.
Anywhere between 600 million dollars and one point two billion dollars in customer money was co -- and it's gone.
I don't know where it is it still needs -- have found this yet.
That's allegedly with this with this subcommittee's going to be talk about but here's -- thing that visit the the optics of Jon Corzine putting his hand not a Bible.
Standing up there and saying.
I will not answer that question based on my first fifth amendment rights is going to be dead optics not just for Corzine before the president -- -- -- this guy was on the short list.
To be to be treasury secretary -- the high profile fund raiser for for President Obama.
In this summer or in April excuse me he bungled something like 500000.
Dollars gave the maximum.
For himself some like 5000 dollars.
And here's a thing I mean this is where it goes next -- becomes political when that happens if and when that happens and then the question is does the president to back the money.
That's where this thing could -- sort of that's where Corzine could be a big political problem for the president I mean listen.
You know bush had -- Halliburton Cheney and Halliburton may -- massive problems involving.
Evolving defense contractors.
Obama may have Corzine because what happened and MF global.
We don't know all the facts it just looks really bad we should point out there is an active and serious criminal investigation going on there about -- missing money.
Any updates from reporting yesterday on the sovereign debt trade that might have actually worked out to MS favor.
Well I mean is it just if you look at what's going on in Europe right now we do have you.
You bailout fever going on and -- they're -- their inching their way towards era I wrote a column in the New York Post a where -- basically said if they wanna really bail out they're gonna have to start printing money there's no doubt about you have to do we did.
Which is essentially print money QE1 QE2 quantitative easing is essentially printing money you know you've given the banks money.
That's what they're gonna have to do there.
And that's where their movie and that was the Corzine's -- the bet was that eventually they Dell and out there are moving in that direction.
And the bonds -- that he bought the teach the short term Italy in Spanish bonds they are firming up.
I mean is it possible that they firm up the shell game behind the -- takes place on the -- it's hey we found -- billion dollars that we lost eight years and here's the thing who knows I mean the -- I I can only tell you that they should have found that by now yeah you know but I -- -- does it go from being not found to be don't lost it -- here's the -- -- -- even if they did find it it doesn't matter they commingled it yet get that money is supposed to be sacrosanct.
And there is going to be hell to pay for the person that he gave the order the wink and a nod but just simply screwed up and -- -- think.
Jon Corzine no one may have screwed up they just may have had bid operation compliant systems in place.
-- shame on you Jon Corzine you should not change the bought the model that firm from basically a plain Vanilla brokerage firm into a risk taking firm.
Without upgrading component is better -- that he should have -- yup that's going to be a problem aren't so thank.
