The Collapse of MF Global

What MF Global did was take money from segregated accounts to cover proprietary trading losses. It then tried to hide it.

All of that is highly illegal.

SOMEONE or some group of people had to be responsible and those people should be held criminally liable.

I am stuck on several things: 1) When Terrence Duffy (head of the CME group, which is the commodity's industry regulator) testified before Senate, he said that Corzine was aware that client funds were raided. He didn't specify whether Corzine knew before or after, which would be important, but this was from his own investigators conversations with people at MF. 2) The Congressional Committee that investigated concluded there was evidence that Corzine knew. Specifically, they pointed to an email from Edith O'Brien, the assistant treasurer at MF in which she wrote about a transfer that was "per JC's direct instructions." When she was brought in to testify, she invoked her 5th amendment rights against self incrimination, by the way.

What I do know. ... Corzine is a major bundler (fundraiser) for the sitting president who is up for reelection. Corzine's firm, for which he should possibly be under indictment, MF Global, used to be a client of the former law firm of the AG (Eric Holder) and one of his top assistant AGs (Lanny Breuer).

Even if there really is no case against Corzine, or he did nothing wrong, there is a STRONG appearance of cronyism. How in the world doesn't Holder recuse himself and leave it in the hands of a special prosecutor? And what are we to make of what we learned from the Congressional hearings that sounded VERY unkosher, and then now being told, "Well, we have no case against him"?

And aside from that, we know that SOMEBODY did something illegal. Someone had to have made the decision to raid segregated accounts. Why isn't there a prosecution of someone or multiple people, even if they do conclude that somehow Corzine was unaware?

 

Nope. There is still $1.6 billion still out there that customers are sitting there hoping they might see back. A lot of them are farmers who were hedging with MF Global. It has been devastating to them.

They will likely recover a good amount of it -- in time. There is a lot of unraveling to do. There is money that has to be sitting with banks that were trading partners of MF Global and they will go in and recover it. That means eventually, customers will probably get most (or maybe all) of their money back.

The ones who will be screwed will be creditors. They are going to eat losses due to criminality. I just can't see how SOMEBODY isn't going to be indicted. And I am dubious about Jon Corzine not having actually authorized the raiding of segregated accounts from what I have read and heard.