MF Global lost $600 million of the clients’ money and they didn’t tell investigators for 5 days under Crash Corzine’s management.
MF Global is a mystery to date as accounts remain frozen. All the brokers have been fired. Fortunately, they didn’t have a chance to latch onto taxpayer money and we are not on the hook.
The Securities Investor Protection Corporation, a non-government entity, insures clients for up to $500,000 if the missing money is not found. In this event, investors will be forced into bankruptcy and can expect pennies on their dollar in return.
“I didn’t know he was a crook, this Jon Corzine,” said Ken Ries, an Iowa futures broker who used MF Global to trade wheat and soybean futures on behalf of farmers in his community. “We were established with MF Global way before he came on board. I don’t know how a man could do as much damage as he does in 20 months.”
Corzine, former NJ Governor, did the same thing for MF Global that he did for the state of NJ. NJ was smart enough to not vote him back into office. He resigned from MF Global last week and gave up his $12 million bonus. He has hired a high-priced lawyer.
Forensic accountants are going through the ledgers now to find the missing money or to at least find out why it’s missing.
“We will not know the extent of any deficiency in funds which should have been segregated by MF Global for your benefit,” Giddens wrote. “While the investigation is proceeding around the clock we are unable to estimate when it will be complete.”
I’m sensing something illegal here since the funds were supposed to be segregated and kept liquid.
Corzine’s triggered the margin calls that drove MF Global to bankruptcy by borrowing lots of cash to buy European debt. If this were a company that was too big to fail, the taxpayers would be facing enormous debt because regulators never saw it coming.
Obama and Biden campaigned for Corzine during his flailing campaign and Obama even sent a key advisor, Joel Benenson, to shore it up.
Here is Biden talking about how he called Crash for economic advice
Here is Obama trying to talk NJ into re-electing Crash Corzine. Obama & Corzine, One Voice, egads, no wonder the country is going to hell in a handbasket