(WMR)—The word from WMR’s sources in Chicago is that the financial collapse of the commodities trading firm MF Global is merely the tip of the iceberg in commodities trading fraud, especially in gold, and that a major cover-up of the extent of the fraud by the Obama administration, including by Attorney General Eric Holder, is currently underway.
As much as $1.2 billion in what was supposed to have been carefully-segregated MF Global customer accounts may be missing and there is a strong suspicion that the former Goldman Sachs executives in charge of MF Global, former MF Chief Executive Officer Jon Corzine, the former Democratic U.S. Senator from and Governor of New Jersey and former MF President Bradley Abelow, are using their political connections to President Obama, Treasury Secretary Tim Geithner, and Holder to ensure a go-slow approach to the investigation of the missing money.
The federal Commodity Futures Trading Corporation and Justice Department fraud investigators can merely express the fact that they are mystified and astonished over the loss of the MF Global customers’ money. There has also been suspicion expressed by Chicago Mercantile Exchange (CME) traders over the federal court appointment of James W. Giddens of Hughes Hubbard and Reed as the liquidation trustee for the bankrupt MF Global. Hughes Hubbard and Reed maintains a major office in Jersey City in the Merrill Lynch Building, near the Goldman Sachs Tower. Giddens was the court-appointed liquidation trustee for the collapsed securities firm Lehman Brothers in 2008. Giddens has served as a financial adviser to Goldman Sachs and as a corporate restructuring adviser to Merrill Lynch and JP Morgan Chase.
WMR has learned that the recent extra security posted on the CME’s trading floor in Chicago is not the result of nearby Occupy Wall Street protesters but from outraged defrauded MF Global customers who have threatened “the Merc.” Many traders in the Treasury and Standard & Poors pits are also openly wondering about who will be “suicided” in the MF Global scandal. The former Democratic chairman of House Financial Services Committee, Massachusetts Representative Barney Frank, and its current ranking member, has suddenly announced his retirement after 16 terms in Congress. The Financial Services Committee is the House’s oversight body over Wall Street and Chicago commodities trading.
Previously published in the Wayne Madsen Report.
Copyright © 2011 WayneMadenReport.com
Wayne Madsen is a Washington, DC-based investigative journalist and nationally-distributed columnist. He is the editor and publisher of the Wayne Madsen Report (subscription required).
