MF Global Collapse: Where's Jon Corzine?
After MF Global collapsed, Jon Corzine, the CEO, resigned. He was entitled to a $12.5 million payout from the bankrupt firm. He turned down the payout.
Immediately upon filing for bankruptcy, word spread that client money was missing. What was the source of this accusation? Apparently the firm Interactive Brokers had considered buying MF Global when it was clear MF was in trouble. They obviously figured they could get a good deal for MF Global. This is typical business practice. It benefits the acquiring firm, but also benefits the clients of the firm being acquired, since it assures them that they can go about their business with a minimum of disruption.
But Interactive Brokers abruptly nixed the deal. That's when word came out that in the course of their review of MF Globals books, they discovered that client money was missing. Of course, they did not want any part of a firm that might be subject to a criminal investigation.
As it turns out, client money is indeed unaccounted for. Bloomberg published this on November 14th:
Commodity customers of the brokerage that used to be run by former Goldman Sachs Group Inc. co-chief executive Jon Corzine have a shortfall of about $593 million, according to a person with knowledge of regulatory probes into the failure of the New York-based firm.
So the bankruptcy trustee - the party put in charge of the company after it declared bankruptcy - seized all client margin account assets. Their reasoning was that because there was a chance certain client assets might have been taken from client account without their permission, the trustee would secure the client accounts until a proper accounting can be done.
Of course, now those clients can't access their money. One of those people is a financial professional - Gerald Celente. Celente is not happy about all this. What makes him angry is the fact that he cannot get any information from the trustee regarding his money.
Meanwhile, you don't hear much about Jon Corzine, except for the fact that he is going to help President Obama's campaign effort. He seems to be going about his life - a very comfortable life - without any consequence.
But wait. Now it seems that the amount missing has increased to $1.2 billion - double the original estimate. We'll wait and see if that's the correct amount. (I had read an estimate of $3 billion when the news originally broke.)
You have to believe that this man will be held accountable at some point, right? Is it possible that somehow Corzine will just walk away from this mess?
You also have to wonder why the President's campaign would want this guy representing them.
Do you wonder why the Occupy Wall Street people get sympathy from some people?
Immediately upon filing for bankruptcy, word spread that client money was missing. What was the source of this accusation? Apparently the firm Interactive Brokers had considered buying MF Global when it was clear MF was in trouble. They obviously figured they could get a good deal for MF Global. This is typical business practice. It benefits the acquiring firm, but also benefits the clients of the firm being acquired, since it assures them that they can go about their business with a minimum of disruption.
But Interactive Brokers abruptly nixed the deal. That's when word came out that in the course of their review of MF Globals books, they discovered that client money was missing. Of course, they did not want any part of a firm that might be subject to a criminal investigation.
As it turns out, client money is indeed unaccounted for. Bloomberg published this on November 14th:
Commodity customers of the brokerage that used to be run by former Goldman Sachs Group Inc. co-chief executive Jon Corzine have a shortfall of about $593 million, according to a person with knowledge of regulatory probes into the failure of the New York-based firm.
So the bankruptcy trustee - the party put in charge of the company after it declared bankruptcy - seized all client margin account assets. Their reasoning was that because there was a chance certain client assets might have been taken from client account without their permission, the trustee would secure the client accounts until a proper accounting can be done.
Of course, now those clients can't access their money. One of those people is a financial professional - Gerald Celente. Celente is not happy about all this. What makes him angry is the fact that he cannot get any information from the trustee regarding his money.
Meanwhile, you don't hear much about Jon Corzine, except for the fact that he is going to help President Obama's campaign effort. He seems to be going about his life - a very comfortable life - without any consequence.
But wait. Now it seems that the amount missing has increased to $1.2 billion - double the original estimate. We'll wait and see if that's the correct amount. (I had read an estimate of $3 billion when the news originally broke.)
You have to believe that this man will be held accountable at some point, right? Is it possible that somehow Corzine will just walk away from this mess?
You also have to wonder why the President's campaign would want this guy representing them.
Do you wonder why the Occupy Wall Street people get sympathy from some people?
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