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Soros Profits From Corzine’s MFG Bankruptcy

From the Wall Street Journal:

Corzine’s Loss May Be Soros’s Gain

Investor Places Big Bet on Euro Debt, Buying MF Global Former Holdings

By GREGORY ZUCKERMAN and DANA CIMILLUCA
December 9, 2011

Investor George Soros’s family fund bought about $2 billion of European bonds formerly owned by MF Global Holdings Ltd., the very debt that helped force the securities firm to file for bankruptcy protection Oct. 31, according to people close to the matter.

George Soros purchased about $2 billion of the European bonds that helped take down MF Global…

These positions were offered to a number of big investors immediately after MF Global’s collapse, according to investors who had a chance to buy the bonds. The sales process was run by MF Global’s London clearing house, LCH Clearnet, according to a spokeswoman for KPMG.

Though a number of large investors passed on these bonds, Mr. Soros’s interest was piqued, according to people close to the matter.

The 81-year old investor, together with his investment team at Soros Fund Management, purchased the bonds for below the market price at the time, in a transaction involving JP Morgan Chase & Co, according to these people…

Below market price? What a scavenger! (By the way, note the participation of Obama’s other pal, Jamie Dimon.)

Soros Fund Management, which manages about $26 billion for Mr. Soros, his family and his charities, may have profited during the subsequent five weeks, these people say, as the market recently has improved for Italian and other European debt

What a scavenger. Just wait until the Occupy Wall Street protesters hear about this. (Of course we are indulging in sarcasm here.)

Perhaps Mr. Soros is bought up these bonds so that he can make the original MF Global investors ‘whole.’ (Yes, we are being sarcastic again.)

The Italian-debt purchase by Mr. Soros is significant because it indicates that an investor considered to be one of the world’s savviest has confidence that the country won’t default on its debts, at least by the time these bonds mature in December 2012

Soros is not as "savvy" as he is politically connected. In fact, when it comes to ‘crony capitalism,’ Soros is the Mother Of All Crones.

Soros is even more politically connected that Jon Corzine. Than probably anyone on the planet. After all, he has the President of the United States in his hip pocket.

Lest we forget, Soros also made more profit than just about anyone from the housing collapse and the subsequent financial crisis, both in 2007 and in 2008.

And, oddly enough, Mr. Soros was also one of the first to talk down the economy. Afterwards, he even crowed that the US financial crisis was the culmination of his life’s work.

Which are a few more minor details that seem to have escaped the Occupy Wall Street crowd – and, of course, our news media.

By the way, doesn’t George Soros strike you u as the real life embodiment of Mr. Potter from the Frank Capra Christmas classic, ‘It’s A Wonderful Life’?

In fact, doesn’t Soros run the Democrat Party just like Potterville? Using various fronts for his political ventures?

This article was posted by Steve Gilbert on Friday, December 9th, 2011. Comments are currently closed.

3 Responses to “Soros Profits From Corzine’s MFG Bankruptcy”

  1. mr_bill

    I can see this ending right now. Two possibilities:

    1.) The US Treasury will buy these bonds from Soros, allowing him a tidy profit of 200-300%

    2.) The US Treasury will bail out the EU and offer to fully fund the bonds, allowing Soros a nice profit of 200-300% when he then sells them to the Chinese, using our money as collateral against a default on the bonds.

    In either case, it will be done in secret and the US public will only ever find out after the Euro fails and us taxpayers are on the hook to put a few billion dollars in ol’ Soros’ pockets.

  2. P. Aaron

    Don’t let a ‘good crisis’ go waste!

  3. tranquil.night

    “In fact, doesn’t Soros run the Democrat Party just like Potterville? Using various fronts for his political ventures?”

    And intimidating those who stand up to him by seeding negative gossip around town, influencing local authorities, etc.

    Plus Potterville, Obamaville. They’re all slummy.




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