Former Goldman Sachs CEO and former Governor of New Jersey, Jon Corzine, has resigned as head of MF Global.
MF filed for bankruptcy protection and reports are circulating that hundreds of millions of client money was used without approval to back up losing positions of the firm.
In addition to his resignation, Corzine has hired major league white collar criminal defense attorney, Andrew J. Levander.
The latest report has federal authorities, including the Federal Bureau of Investigation and the Securities and Exchange Commission, investigating $630 million in missing customer funds at MFl.
Doesn't everyone know that "customer funds" or "deposits" are mere "loans" to these outfits? Or is it only banks that are free to make bets with demand deposits? Unsecured creditors are free to file their claims in the bankruptcy court.
ReplyDeleteIt will be interesting to see how this case will be approached by the feds. I anticipate a substantial dose of hypocrisy down the road. Next, I suppose, hedge funds will have to join the FDIC.
Corzine is a made-man political mafia don and will be protected.
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