Above the Law

Exhibit A: read this article on Jon Corzine, the head of MF Global who, as it turns out, will likely not be criminally liable for the disappearance of $1.6 BILLION of customer funds.

In the securities world, there is a term called 'commingling' or 'rehypothecating'.  This is where, in the case of a brokerage outfit, the firm allow both brokerage assets to be used together with the customer assets for operations, etc. In the United States and Canada, this law is strictly prohibited.  Regulation in the UK is more lax.  However, it appears that Mr.Corzine, even though he admittedly violated the law, will not be prosecuted for it.

James Giddens, the trustee overseeing the MF Global's liquidation, has now accounted for all $1.6 in customer funds that were used by MF Global to try and keep the failing company afloat.  Corzine stated that he didn't know what happened and that it wasn't his intent that the company money be combined with client assets

Why is this brash violation allowed by Eric Holder? I think it's because he feels the people that pay his salary are like this:




Is it because there is a certain class of people in society that no matter how bad they are, they are above the law and it's sword of justice?  Or is it because our law lacks teeth or at least, the teeth it once had has been removed (see Glass-Steagall).

Is it fair to allow a person to go free when he knowingly disobeyed the law in order to save his reputation and company (and many jobs too I get it), letting others pick up the pieces from his destructive decision-making?

Certainly, this doesn't seem fair.  Nor does the governments apparent dismissal of it promote in my mind any kind of justice.

This raises an interesting biblical question in my mind:  Is God a God of fairness or justice?

It certainly wasn't fair that Esau had the birthright stolen from his brother, nor was it fair to Uriah the Hittite who had his life taken while in service of the King who was the one committing adultery to his wife?

Also interesting that the Bible includes accounts of the sinfulness of man, our shortcomings, our passions, desires, faults etc.  Yet, God's love for us remains constant and never-ending.

In the end, although difficult to understand, God is sovereign and things happen within the confines of his authority and I rest in confidence there.

However, is difficult to overcome my sense and desire for fairness when observing such egregious situations.

PLW