Tuesday, November 1, 2011

What Was Jon Corzine Thinking? (Cont.)

It looks like Jon Corzine's troubles aren't only financial and reputational.  If this report is correct, they're also likely to involve the criminal law:
"MF Global, the failed securities firm led by Jon Corzine, admitted using clients' money as its financial troubles mounted, a federal official says.  An MF Global executive admitted that to federal regulators in a phone call early Monday after regulators discovered money missing from clients' accounts, according to an official familiar with the conversation."
You might have thought that the events of the last few years would at least have taught Corzine how to drive a financial enterprise over a cliff without going to jail.

2 comments:

Anonymous said...

This has to be the fastest demise of a firm ever. Earnings release, downgrade, bankruptcy, confessions of breaking the law. Are handcuffs next in sight?

Corzine is either thinking he's in a bad dream or he created this mess. We'll see which one is true pretty soon.

Billy said...

It will be interesting to see how eager Obama's DoJ will be to go after a Democratic insider like Corzine who probably has a lot of intimate connections with people in the administration. I guess if the facts are as bad as they are starting to look, Obama and Holder won't have much choice.