Peregrine Founder Blew the Money
So now we learn that Peregrine founder Russ Wasendorf already spent the money that's missing from client accounts. (I just can't shake this whole Peregrine thing out of my mind!) You can read a full report in the Wall Street Journal by clicking HERE. The best line in the article is when Wasendorf says that deceiving the regulators was "relatively simple."
Apparently Wasendorf will face a judge. That's a start. But the article goes on to tell us that he will be represented by a public defender. Why a public defender? Where the hell is all this guy's money? He just said he stole client money to the tune of hundreds of millions. He claims it's all spent. So he has no money ANYWHERE and the tax-payer has to pay for his defense? A guy that crafty must have a few bucks stashed away somewhere.
(The article does say that at some point the cost of any legal action may ultimately be borne by Wasendorf, but still...)
Now this public defender thing's gotten me pretty worked up. What sort of "system" is this that doesn't have this guy in irons right now? Where are the photos of him being led away? Is he still in the hospital after his attempted suicide? I haven't seen any details on any of this. What sort of reporting is this?
And you'll please note that I haven't lost any money because of this guy's admitted criminal activities. Imagine what the people who lost money must be thinking - and feeling.
Exactly what does someone in the financial services industry have to do before people get outraged enough to demand justice? I'm assuming the victims are pretty worked up, but shouldn't the rest of us be?
Well, maybe this guy will be nailed like Madoff was. But I'm guessing that will only take the pressure off the folks who were lying and cheating as part of their normal way of doing business like that fellow Diamond at Barclays. Maybe he can rest easy now that Wasendorf's in the spotlight.
And how about all the gang that cashed in during the sub-prime scandal that preceded the crash of 2008? They can relax too. Oh, and let's not forget the bankers who took risks and were bailed out by taxpayers. I suppose they can purchase some first-class tickets and fly somewhere to do a deal while they sip some champagne.
Wasendorf will serve as the sacrificial victim offered up for their sins - at least for the time being.
As for the regulators - the same ones that Wasendorf says it was relatively simple to deceive - it seems that they are suing him now. That would be the Commodities Futures Trading Commission (CFTC) and the National Futures Association (NFA).
Meanwhile I keep looking for any investigations of the regulators, but I'm coming up empty. Not only am I coming up empty in my search, but apparently the customers who've lost money, first with MF Global, now with Peregrine, keep coming up empty too.
Not only is there no outrage in the media, but when they do cover these stories it's in a kind of sanitized, matter-of-fact tone. I imagine that's the media thinking it's being "objective." The media being objective - that's pretty funny, isn't it?
Who Are the Real Victims Here?
Many of the victims here were small farmers trying to hedge their crops and cattle, who may have lost a good portion of their liquid net worth - money they worked pretty damn hard to get and which, instead of spending it on vacations, McMansions and fancy cars (like the bankers and brokers got to do), used that money to prudently hedge the risks inherent in their businesses.
Understand that they were trying to hedge their business risk using their own money. Contrast this with the banks and bankers who were bailed out using taxpayer money after the 2008 collapse.
For the free market capitalist system to continue to function, you can't have these small business people get stiffed and the high-rollers at the too-big-to-fail banks be bailed out. The capitalist system won't last the way things are going here. The people who deserve real justice aren't getting it. Not only do the capital markets - the life blood of the capitalist system - seem rigged against them, but you've got to wonder whether the justice system is too.
Those with the connections, who give money to the election campaigns of both parties so that they'll be bailed out when they screw up, continue to rake in the dough. Nothing they do to take advantage of the system is ever too much to end the game. It goes on and on.
Whatever happened to justice? Look the term up - in case you've forgotten what it means - and then tell me if you see any of this as being consistent with the concept of "justice."
Apparently Wasendorf will face a judge. That's a start. But the article goes on to tell us that he will be represented by a public defender. Why a public defender? Where the hell is all this guy's money? He just said he stole client money to the tune of hundreds of millions. He claims it's all spent. So he has no money ANYWHERE and the tax-payer has to pay for his defense? A guy that crafty must have a few bucks stashed away somewhere.
(The article does say that at some point the cost of any legal action may ultimately be borne by Wasendorf, but still...)
Now this public defender thing's gotten me pretty worked up. What sort of "system" is this that doesn't have this guy in irons right now? Where are the photos of him being led away? Is he still in the hospital after his attempted suicide? I haven't seen any details on any of this. What sort of reporting is this?
And you'll please note that I haven't lost any money because of this guy's admitted criminal activities. Imagine what the people who lost money must be thinking - and feeling.
Exactly what does someone in the financial services industry have to do before people get outraged enough to demand justice? I'm assuming the victims are pretty worked up, but shouldn't the rest of us be?
Well, maybe this guy will be nailed like Madoff was. But I'm guessing that will only take the pressure off the folks who were lying and cheating as part of their normal way of doing business like that fellow Diamond at Barclays. Maybe he can rest easy now that Wasendorf's in the spotlight.
And how about all the gang that cashed in during the sub-prime scandal that preceded the crash of 2008? They can relax too. Oh, and let's not forget the bankers who took risks and were bailed out by taxpayers. I suppose they can purchase some first-class tickets and fly somewhere to do a deal while they sip some champagne.
Wasendorf will serve as the sacrificial victim offered up for their sins - at least for the time being.
As for the regulators - the same ones that Wasendorf says it was relatively simple to deceive - it seems that they are suing him now. That would be the Commodities Futures Trading Commission (CFTC) and the National Futures Association (NFA).
Meanwhile I keep looking for any investigations of the regulators, but I'm coming up empty. Not only am I coming up empty in my search, but apparently the customers who've lost money, first with MF Global, now with Peregrine, keep coming up empty too.
Not only is there no outrage in the media, but when they do cover these stories it's in a kind of sanitized, matter-of-fact tone. I imagine that's the media thinking it's being "objective." The media being objective - that's pretty funny, isn't it?
Who Are the Real Victims Here?
Many of the victims here were small farmers trying to hedge their crops and cattle, who may have lost a good portion of their liquid net worth - money they worked pretty damn hard to get and which, instead of spending it on vacations, McMansions and fancy cars (like the bankers and brokers got to do), used that money to prudently hedge the risks inherent in their businesses.
Understand that they were trying to hedge their business risk using their own money. Contrast this with the banks and bankers who were bailed out using taxpayer money after the 2008 collapse.
For the free market capitalist system to continue to function, you can't have these small business people get stiffed and the high-rollers at the too-big-to-fail banks be bailed out. The capitalist system won't last the way things are going here. The people who deserve real justice aren't getting it. Not only do the capital markets - the life blood of the capitalist system - seem rigged against them, but you've got to wonder whether the justice system is too.
Those with the connections, who give money to the election campaigns of both parties so that they'll be bailed out when they screw up, continue to rake in the dough. Nothing they do to take advantage of the system is ever too much to end the game. It goes on and on.
Whatever happened to justice? Look the term up - in case you've forgotten what it means - and then tell me if you see any of this as being consistent with the concept of "justice."
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