Corzine: closer to jail?
cat tail
3/26/2012 10:39:19 AM
Jon S. Corzine, MF Global Holding Ltd.'s former chief executive officer, may face potential legal liability if investigators show he knew customer money might be used when he ordered $200 million transferred to a U.K. account as his brokerage neared collapse, Bloomberg News' Linda Sandler and Phil Mattingly report that former prosecutors said.
The ex-Goldman Sachs Group Inc. co-chairman gave "direct instructions" to move money from a U.S. account to meet an overdraft with JPMorgan Chase & Co. (JPM) just days before MF Global's bankruptcy, according to a memo by congressional investigators. Such accounts may have contained assets belonging to both customers and MF Global.
"It's not whether he specified," John Moscow, a former chief prosecutor in the office of Manhattan District Attorney Robert Morgenthau, said yesterday in an interview. "The economics of the situation were he was out of money. The bottom line is, he was taking a risk with somebody else's money."
In a casino, said Moscow, now with Baker Hostetler LLP in New York, "if I put your money on the table, I've committed larceny as soon as I expose it to risk."
It seems like they are closing in. Amazing.
Re: Corzine: closer to jail?
Tenacious
3/26/2012 10:57:40 AM
I'm just bewildered why it is taking so long. If I'd have taken three loaves of Wonder Bread from 7-11, I'd have already been in jail.
Re: Corzine: closer to jail?
driven
3/26/2012 11:03:43 AM
You, @Tenacious, have apparently never worked at Goldman Sachs.
Re: Corzine: closer to jail?
Street Smart
3/26/2012 11:18:17 AM
What is the world...and Goldman Sachs...coming to? When the money went missing this scenario seemed so believable that it was just unbelievable.
Whether Corzine does jail time (perhaps he could share a cell with Rod Blagojevich) or just ends up poor and disgraced, this is a LONG way to fall! I want to say "Now I've seen everything," but that might tempt the gods.
Very, very sad...
It should never have happened in the first place. It was against CFTC rules. There should have been controls in place to prevent this from happening.
Re: Corzine: closer to jail?
Street Smart
3/26/2012 2:31:37 PM
Oh, @Scott, let me be perfectly clear: I totally agree that the MF Global meltdown should never have happened, and it now seems abundantly clear that client monies weren't simply "misplaced." I know some of those client funds are yours and I think you're doing an admirable job of staying even keel. If Corzine knew anything (and it looks like he did) they should throw the book at him.
All I'm saying when I roll my eyes heavenward and ask what the world is coming to is that I lament the loss of honor and ethics on Wall Street. I honestly believe that they used to exist.
There was an interesting article in the NY Times this morning about Goldman's alleged role in the bankruptcy of Copper River Partners in 2008. We want better regulation and a more level playing field for the "little guy" but this was a $1.5 billion hedge fund!
http://www.nytimes.com/2012/03/26/business/goldman-sachs-denies-claims-it-led-to-copper-rivers-demise.html
He's unfortunate to end up in the "Let's make an example of folks" period that we're in. The bigger you are, the harder the public exampls is.
Phil, not sure what you are saying. Are you suggesting Corzine should be anywhere BUT jail?
No I'm saying that there's a bad time to get caught up in the wrong things. Corzine did. Now he's going to pay the price.. might be harsher to make thenext guy NOT want to follow in his footsteps.
Probably not. They never learn from each other's mistakes.
I think they do. They just don't stop doing the 'wrong' thing altogether. It gives them another angle on how NOT to get caught.
Money and Jail
impactnow
4/18/2012 1:26:15 PM
He should be held accountable but money and power often shield those in these positions. He should have been carted off to jail already.
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