November 3, 2011

MORE ON THAT BANKRUPT JON CORZINE FIRM: MF Global pushed regulators to use client funds. “Late last year MF Global—the failed investment firm headed by Democratic heavyweight Jon S. Corzine that can’t account for as much as $900 million of its clients’ money–urged a federal agency to allow futures firms to invest funds from their customer segregated accounts in foreign sovereign debt. . . . Corzine, a former Goldman Sachs CEO, spent $62 million of his own money to win election to the U.S. Senate from New Jersey. He resigned his seat to run for governor of New Jersey in 2005. In 2009, he lost his reelection bid to Republican Chris Christie, and became CEO of MF Global in 2010. While he is not registered as a lobbyist for the firm, the federal agency meeting logs show he personally was active in pressing the company’s interests before agencies.”

He’s a Democrat and a big Obama donor, too, though the description above omits that.

UPDATE: Could Tighter Regulation Have Protected MF Global’s Client Accounts? “No. Or at least, probably not. To start with, this is really illegal. There are no ‘loopholes’ that allow you cover your losses with client funds.”

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