MF Global’s lawsuit claims PwC was wrong to advise firm to treat European-debt transactions as sales

MF Global’s lawsuit claims PwC was wrong to advise firm to treat European-debt transactions as sales

 .. PwC contends its accounting advice was correct, and that MF Global’s own decisions and strategy, driven by Mr. Corzine, caused the brokerage’s bankruptcy.

Mr. Corzine said he and others at MF Global thought the sovereign-debt investments were “attractive” and highly rated by credit-ratings firms. “We would have had a hard time calling them risky securities,” he said.

.. When MF Global failed, the firm had a $1.6 billion shortfall in customer funds that was later recovered. Prosecutors investigated Mr. Corzine and other MF Global executives but ultimately didn’t bring any charges.

.. Some counterparties withheld money due MF Global, leading to a cash crunch, he said. “I believe they’d lost trust in our financial statements, and they needed to protect their financial position.”

.. Ultimately, Mr. Corzine said, all of the risky European bonds paid off in full, as he had expected them to.

The Silence of the Hacks

So what do Republicans in Congress, who have the power to investigate the situation, believe should be done?

Nothing.

Paul Ryan, the speaker of the House, says that Michael Flynn’s conversations with the Russian ambassador were “entirely appropriate.”

.. Why?

Well, Senator Rand Paul explained it all: “We’ll never even get started with doing the things we need to do, like repealing Obamacare, if we’re spending our whole time having Republicans investigate Republicans.”

.. you can’t understand the mess we’re in without appreciating not just the potential corruption of the president, but the unmistakable corruption of his party — a party so intent on cutting taxes for the wealthy, deregulating banks and polluters and dismantling social programs that accepting foreign subversion is, apparently, a small price to pay.

.. Republicans didn’t worry so much that holding a lawless president accountable would derail their hard-line agenda.

.. Now we know that even as the F.B.I. was creating the false appearance of scandal around his opponent, it was sitting on evidence suggesting alarmingly close relations between Mr. Trump’s campaign and Russia.

Trump With a Tail

The religious right is counting on him to keep a chief executive with a history of crotch-grabbing on the straight and narrow when it comes to their agenda. And Republicans in Congress realize he’s the only member of the top team who could get through a phone conversation with the prime minister of Australia without causing an international crisis.

.. On Friday, he was directing the government to liberate our financial industry from the heavy boot of regulation that left the nation’s bankers and hedge fund managers living on rice and beans during the Obama era.

.. One of the goals is to get rid of a pending rule requiring brokers to act in their clients’ “best interests” when they’re giving advice about retirement investments. Obviously, this would be really, really hard on our nation’s forgotten financial consultants. And you know how much the beleaguered working class hates the gloom of transparency in their I.R.A.s. But liberation is on the way.