MF Global, One Year Later. No One Charged

Posted by Jeff Carter
on November 1st, 2012

NEW YORK, NY – NOVEMBER 01: An MF Global sign is seen in the office building where MF Global Holdings Ltd have offices in Manhattan on November 1, 2011 in New York City. The brokerage firm, run by former New Jersey governor and Goldman Sachs boss Jon Corzine, has filed for bankruptcy in another developing financial scandal. (Image credit: Getty Images via @daylife)

It’s been a year since MF Global’s debacle was revealed to the broader marketplace. The hubris of Jon Corzine is amazing. The fact that he has stayed out of jail is a testament the amount of political cover he has received. Francine McKenna has a great piece I linked to in Breakfast Links about the accounting around the disaster. There is a common theme, and it runs through PriceWaterhouseCooper….

Of course, we’re not yet being told who has $1.6 billion of customer funds still unaccounted for. If the SIPA Trustee James Giddens tells you he may be able to make customers almost whole, it’s from other funds recovered via negotiations from other sources. Not one organization has been sued, nothing has been clawed back, no one has been held formally responsible.

But I’m talking about something more than money. What’s still missing from this sordid affair is an accounting of the whereabouts of the financial auditor, PricewaterhouseCoopers. The global audit firm would rather come off as stupid than complicit in the actions of whomever broke the law and stole MF Global customer funds.

$1.6 Billion is still missing. That’s a lot of cake. No one has been charged. That’s a travesty of justice. That amount of money doesn’t disappear without intent or some reason. I know, I have had winning trades and losing trades. Winning investments in companies and losing investments in companies. When I win, I know why. When I lose, I know why too. I know where to find the money. When I am debit, I know where to find that money too!

Amidst all the underhanded and disgraceful things going on in the Obama administration, Fast and Furious, Benghazi, failed stimulus, the cover the Department of Justice is giving Corzine is pretty bad.

Corzine should be charged, Treasurer Edith O’ Brien given immunity and let’s see some transparency. Let the chips fall.

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