We find it supremely ironic that one former Goldmanite, in this case the CFTC's Gary Gensler, takes credit (doing the people's work this time?) for allowing the failure of what is now a documented criminal enterprise, MF Global, run by another former Goldmanite, Jon Corzine, and claiming this was nothing less than an example of "Freedom To Fail". The NYT quotes Gensler: "This was an example of a financial institution having the freedom to fail,” he said in response to questioning from Senator Carl Levin, the Michigan Democrat who chairs the Permanent Subcommittee on Investigations. “I don’t think there’s any taxpayer money behind this.”" No, Gary, there is just client money behind this. Anywhere between $700 million and $1.5 billion. Money that was stolen, and had MF global been bailed out, you, the CFTC and the US Government would have been complicit in a prima facie felony. So please - no need for the pathetic pandering to the lowest common denominator that only years of Goldman tenure can hone to this level of perfection. The only question is whether the CFTC, together with that other corrupt regulator which oddly enough is not yet run by a third Goldman alum, has the "freedom to jail."

More from NYT:

The top regulator tasked with overseeing the bankrupt brokerage firm MF Global said Thursday that the search continues for more than $630 million in missing customer funds, warning that the protection of client assets is essential to doing business on Wall Street. Gary Gensler, chairman of the Commodity Futures Trading Commission, said his agency is still investigating the firm, a powerhouse commodities brokerage run by former New Jersey governor Jon S. Corzine. “The most troubling aspect about the MF Global situation is the shortfall of customer money at the firm. Segregation of customer funds is the core foundation of customer protection in the commodity futures and swaps markets,” he said in prepared testimony. “Segregation must be maintained at all times. Simply put, that’s every moment of every day, down to the nano second.”

And here is how efficient Gensler is at enforcing "stuff"

Mr. Gensler first spotted a potential shortfall late last week, personally calling MF Global’s attorney to alert the firm. But it was not until around 2 a.m. Monday morning that the firm fully recognized the magnitude of the missing money. The disclosure sent bidders fleeing and the firm had no choice but to file for bankruptcy

All that is irrelevant: expect Obama to promptly make the pubic circuit claiming it is only due to his policies that MF Global was not bailed out, criminality be damned.