Before Corzine joined MF Global in May 2010, the firm was a smart and well-run commodities broker, a culture that was turned upside-down by his leadership style, he said.Another pol wrecking another industry in this fragile economy. More. Forbes:
“The traders would be shaking their heads,” he said. “They would come back to their desk and say, ‘Well, I thought we were going to do this—but Corzine would come by and do something else all by himself,’” he said.
MF Global may have committed a crime by taking $200 million from segregated customer accounts “and used it to pay for bank overdrafts, shortfalls in other customer accounts and MF Global’s own commodities activity,” according to Vincent Schmeltz III, of Barnes & Thornburg, the lawyer for MF Global’s customers, who are trying to get back their missing funds.
Another $1.0 billion of segregated customer accounts is still missing and unaccounted for according to the MF Global Trustee in bankruptcy. Many individual traders in precious metals and agricultural products were damaged by the bankruptcy, farmers, ranchers and other agricultural business owners are missing funds they use to hedge the risks of volatile pricing.
Hitting the heartland hard.Undoubtedly, Jon Corzine, the former CEO of MF Global, will be asked probing questions about the use of customer funds when he testifies before a Congressional committee later this week.
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