Former New Jersey Senator and Governor Jon Corzine’s futures brokerage firm MF Global went bankrupt yesterday. In the bankruptcy filing, there are hundreds of millions of dollars missing from client accounts. The speculation is that the firm may have raided client accounts in order to try to survive over the weekend. The bankrupt firm is MF Global’s holding company, and it looks like Corzine’s firm may have converted money from the brokerage firm into the holding company managed by Corzine.
Nobody denies that Corzine’s trading drove the company into bankruptcy. Specifically, he bought European government bonds. He was counting on taxpayer funded bailouts for Italian and Spanish debt. Did he get inside information from the State Department about what was happening (as markets rallied last week) when it looked like a deal to bail out sovereign European debt was coming? Was he hearing from former Senate Banking committee staff on the status of sovereign debt negotiations?
And where is the media coverage of Corzine’s shady dealing? There is no mention of the raiding of client accounts at the Washington Post (as of now) and this New York Times story (updated last night at 10p.m.) bends over backwards to mitigate any potential wrongdoing by Corzine or his firm.
Had a prominent Republican headed a company driven into bankruptcy by shady risk taking, had a prominent Republican run a brokerage company where hundreds of millions of dollars of client money went missing overnight, we’d never hear the end of it. Congressman Barney Frank would be complaining on MSNBC. The Occupy Wall Street Crowd would descend on the home of the accused. The SEIU would be hastily renting buses for their mob.
But in this age of Alinsky-activism, some wrongdoers are more equal than others. And the activists aren’t likely to demonize and tear apart a New Jersey Democrat friend.