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Uh, Have You Checked Your Pockets?

by Mitch Feierstein about 5 years 4 months ago

We reported recently that Obama’s ex-Goldman buddy, Jon Corzine the head of MF Global, seemed to have lost some $700 million. Problem was, MF Global seemed to have lost $700 million of their clients’ money. Which is a little odd, given that it’s illegal not to keep client money separate from the firm’s own accounts. Illegal as in tantamount-to-theft illegal.

And the story gets a little stranger still, because Reuters today reports that the shortfall at Corzine’s firm, MF Global, is now said to top some $1.2 billion. Which is a lot of money. And if the money was client money that should have been, and wasn’t, kept separate from the firm’s own money, then $1.2 billion is a lot of money to steal.

I’m hopeful that these rumors prove incorrect. If they turn out to be true, then this strongly worded view from Ann Bernhardt might have something going for it. These are dangerous times and MF Global’s collapse is hardly a confidence booster.

3 Responses to: Uh, Have You Checked Your Pockets?

  1. Nikko says:

    Post WWII political system of democratic complacency has clearly allowed for long term strategic thinking to gradually degenerate into short term commercial- gain politics. Perhaps sovereign democracy with a touch of city state republican authoritarianism, based on Schmitts “concept of the political” is a good starting point.

    Be a hoot and don’t pollute.
    P.S. There are better ways to skim money in todays disorganised political structure.

  2. Irving Mintzer says:

    One intriguing aspect of the MF Global failure is that the principal characters in this play are not hapless nabobs or total nitwits, but “real smart guys.”. Jon Corzine is both an experienced politician (a former Senator and Governor) and an experienced investment banker (trained by the ‘best and the brightest’ at Goldman Sachs). It is hardly credible to suggest that he did not know what he was doing or that he was unaware of “rogue” activities at MF Global. But who really knows. Maybe he did not INTEND to steal his clients’ money. Maybe he just forgot that his firm was legally obligated to separate client funds from company funds. Maybe he asked his bankers to hold the money and THEY lost it. No doubt we will have to let the bankruptcy trustee sort all this out, but Mr. Corzine’s actions hardly seem like those of a practical professional dedicated to rebuilding trust in the US financial services sector.