MF Global - a study in pride and ambition

Thus far, Jon Corzine has had a relatively easy time re his role in the MF Global downfall.  But, I suspect things will get a lot harder for him.

Clearly, Corzine has had an outstanding career as we plebeians have seen in the mass media: Senator, Governor, CEO of Goldman Sachs.  All of this may be washed away by his role in MF Global. Thus far, he's been able to escape being blamed for the eighth largest bankruptcy in our history as well as the misplacement of $1.6 billion of customers' money.  If the Senators who have been conducting a series of hearings on MF read the articles by Pam Martens and William Cohan, Mr. Corzine's reputation will be shattered at tomorrow's Senate hearing.

 Ms Martens is not shy.  She opens her article with this:

"Only on Wall Street can you bankrupt a company; misplace $1.6 billion of customers’ money; lose 75 percent of shareholders’ money in two weeks; speed dial high priced criminal attorney;and get a court to authorize the payment of your multi-million dollar legal tab from the failed company’s insurance policies; have regulators waive your requirements to take licensing exams required to work in the securities and commodities industry; have your Board of Directors waive your loyalty to the firm; run a bucket shop out of the UK; and still have the word “Honorable” affixed to your name in a Congressional investigations hearing."

And she goes on to make a strong case for her assertions.  You'll be amazed at the duplicity.

Cohan discusses a suit relative to a $650,000,000 bond issue by MF Global in July and August 2011, three months before MF Global declared bankruptcy.  Corzine is described as the chief criminal.  The company knew it was in severe financial trouble but lied in order to get the money it needed.