Wednesday, June 06, 2012

Corzine Knew!

The disappearance of $1.6 billion from MF Global has Jon Corzine's finger prints all over it.
In a blistering 275-page report, James Giddens, the trustee liquidating the company’s broker-dealer unit, said he might bring civil claims against former Chief Executive Corzine and other top MF Global executives for negligence and breach of duties to customers. …
He said liquidity at the company had long been a concern but became an even greater issue when Corzine came on board in March 2010. Corzine’s vision of MF Global as a global investment bank required the company to maintain higher liquidity levels, Giddens wrote. But Corzine and his team vastly underestimated just how big an increase it would need, Giddens said. …
To make up for the drain on liquidity, MF Global used customer money that was supposed to be segregated from the company’s own funds.
Corzine is the former Democratic governor of New Jersey and has raised more than $500,000 for Barack Obama.


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