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Former Federal Prosecutor Frederick Tecce, Cato Institute Director of Financial Regulation Studies Mark Calabria and Global Strategy Group V.P. Stephe...
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-- -- I'm Gerri Willis has too big to fail become too big to jail that's our big question tonight.
As we -- criminal charges are not expected for any top executives at MF global.
Including former chairman and CEO Jon Corzine member him the former New Jersey governor ran the brokerage firm before it went bust back in October October that is.
Following a huge bet on European debt.
That led to more than a billion dollars in missing customer funds.
And ten months later investigators are concluding that no criminal cases like like the very politically connected Jon Corzine practically off Scott free.
Sure he'll likely pay a fine but the truth is it's merely a slap on the wrist there's even talk about setting up another hedge -- so.
What does it matter to you at home because many small investors including farmers and other MF global customers.
Are now out of millions of dollars -- it away and former federal prosecutor Fred TC.
Mark Calabria the director of financial regulation studies at the Cato institute and Stephen Sigmund a senior vice president of the global strategy group.
-- gonna start with you what do you make of the story act until I get ten months of investigation and really.
No criminal finding here I'm shocked what do you say I'm not.
I certainly don't want a pre judge mr.
resign but certainly there seems to be a lots of evidence that there is criminal wrongdoing at MF global.
And you know there's just such -- suspicion that he was so close the administration.
That you just sort of thought he was gonna get allowed off so I think -- department just -- -- Need to go out of their way to give the public assurance that that was not going to happen I don't think they've done that so again I wanna pre -- him as being guilty.
But again it just looks awfully suspicious that he's taken a walk because of his connections.
I think I also look like they're gonna be going after a lower level people this prince is the assistant treasurer that it might be the fall person here rather than Corzine.
Who I think was very much involved in some of them lots and decision making at this.
Are well is Steve you know about connections you're a Democrat.
And they and you know that's what we're talking about -- somebody is well connected what do you make of that argument.
I got on brother that holds water what -- the Justice Department that would be incredibly stupid for them to.
Make a decision based on the politics and effective they were gonna make a decision based -- -- politics the good politics would be to prosecute one of their own.
And you know be able to stand up on that there -- presidential election so you know what what -- You know what surprises me about all of this frankly is.
The way that -- -- handled this and communicated around this was really really cool.
Not sure they had a good -- Story -- hello men as well and therefore they shouldn't told -- -- story at all about what was happening well look what looks good -- way and here is a former prosecutor former federal prosecutor.
Tell me your reaction to this story has frankly I was surprised.
Yeah multi like Jerry -- -- rates on about five different levels the most important thing that you need to keep in mind is days.
God created a five year statute limitations for federal criminal prosecution.
It is beyond me completely beyond me.
Why the Justice Department a couple of months -- this would make a decision that they're not gonna prosecute this -- And I -- -- there's a lot of different crimes which could possibly be prosecuted.
And a lot of them take time to sift through and so.
If it why -- justice -- we come to the conclusion this -- that they're not gonna prosecute makes no sense to me.
You meet you think it's it should they should take a lot more time studying this interviewing people talking to.
-- all of.
My I think they should take their time I think they should looking at -- carefully and initial lot of different crimes I mean.
These people were subject to regulations -- mean there's a thing called a client to spiritual as a fellow prosecutor prosecuted and airline FAA officials.
If you engage in any type of conduct to impede the lawful function.
Of a governmental agency -- MF global failed to provide sufficient reports failed to provide information.
Hid information from regulators should that they couldn't do their job why this was going on.
That's a crime it's a broad and far reaching federal criminal thanks.
I -- I would eat sometimes you need to be aggressive when you're prosecutor and sometimes you need to bring a case -- even though it's Jon Corzine and I know that when you shoot decaying.
Get better kill -- But but but given the allegations of I've heard about of mixing clients' funds -- -- money in staggering change -- regulation -- regulation.
I it's beyond me why this is stopped now well.
It out heavy and today it's the clients at this company -- it going to pay the price.
I know there's been some suggestion that they might be made whole -- -- at a time it's a lot of money out there.
I mark TU I mean what's the deal here that we have case after case after case.
You look at the Libor settlement hundreds of millions of dollars and find who cares that goes to the shareholders not to the people who did this.
I just don't see that there's any real criminal prosecution when it comes to some of the things that go on Wall Street the discussed all of us.
Well there's multiple levels of problems here mean first of all I think most of -- on the -- of the crisis.
Was irresponsible and reckless but not necessarily illegal so why do you think he needed I'm not for creating crimes after the fact that his actions were crimes of the time.
But certainly in some instances they're Jason -- crimes not.
Again you need to build a case and we all understand and you can't do that every night you've got the special petitions all these things a deal with.
But again I think people are always money here you know investors are not gonna -- made whole I think is under -- space in the market.
Undermines faith in the political process undermines faith and justice so I don't think they've been aggressive -- we are going after wrongdoers but again.
I don't think we should say that if we only gone after all these -- -- -- none of this -- -- happen because I think the issues here are more systemic economically in the system we have -- caused the crisis rather.
