MSM Finally Gets Around to Reporting Jon Corzine MF Global Scandal
With the election safely over, the MSM is now finally reporting that Jon Corzine presided over MF Global when $1.6 billion dollars in investor funds suddenly just vanished into thin air.
Of course, there’s still no mention of the fact that Corzine was a major bundler for Obama.
NEW YORK (CNNMoney) — A Congressional subcommittee investigating the collapse of brokerage MF Global said Wednesday that former CEO Jon Corzine’s reckless tactics doomed the firm and ultimately led to a shortfall of $1.6 billion in customer funds.
In a summary of a report due for release on Thursday morning, Rep. Randy Neugebauer of the House Financial Services Subcommittee on Oversight and Investigations said Corzine “dramatically changed MF Global’s business model without fully understanding the risks associated with such a radical transformation.”
The Republican-led subcommittee didn’t directly address whether laws were broken at MF Global, but provided sharp criticism of Corzine’s management. Mike Capuano, the subcommittee’s ranking Democrat, said that while he agreed with a number of the report’s observations, he was not signing onto it because of insufficient time for review. He and other Democrats will instead submit an addendum to the majority’s findings.
Corzine, a former Democratic senator and New Jersey governor who made his fortune as the head of Goldman Sachs (GS, Fortune 500), was called before lawmakers several times in the aftermath of MF Global’s collapse last year.
MF Global failed after its disclosure of billions of dollars worth of bets on risky European debt sparked a panic among investors. The firm was left scrambling for cash to make good on its obligations and ended up tapping customer funds, failing to replace them in violation of industry rules and leaving a shortfall of $1.6 billion.