Regulators Investigating MF Global

[matt1985]

dealbook.nytimes.com/2011/10/31/regulators-investigating-mf-global/

This looks like bad news for John Corzine. He was not supposed to use client money to finance his bad bets. I can’t believe He destroyed a company, given how smart he seemed. This is what should have happened to the too big to fail banks. I mean, deposits should have been made safe, but shareholders and counter parties should have been wiped out.

Federal regulators have discovered that hundreds of millions of dollars in customer money have gone missing from MF Global in recent days, prompting an investigation into the company’s operations as it filed for bankruptcy on Monday, according to several people briefed on the matter.

The revelation of the missing money scuttled an 11th hour deal for MF Global to sell a major part of itself to a rival brokerage firm. MF Global, the powerhouse commodities brokerage run by Jon S. Corzine, had staked its survival on completing the deal.

 

[MugenOne]

Corzine should know better. Freaking, who would have a 40:1 leverage in this day and age? Even China is saying no to Euro bond. Corzine also is a top fundraiser for President Barack Obama. Corzine has helped raised at least $500,000 for Obama’s re-election campaign since April, according to records released by the campaign.

Corzine had hope for his trades, now he’s left with change

 

[matt1985]

Corzine should know better. Freaking, who would have a 40:1 leverage in this day and age? Even China is saying no to Euro bond. Corzine also is a top fundraiser for President Barack Obama. Corzine has helped raised at least $500,000 for Obama’s re-election campaign since April, according to records released by the campaign.

Corzine had hope for his trades, now he’s left with change

You can use that type of leverage, but you can’t let the position run against you at all. The second day this position ran against him, he should have cut the loss.

I hope he doesn’t accept a 12 m severance package.