Economy

Eugene

(61,919 posts) Mon Jun 4, 2012, 07:13 PM Jun 2012

MF Global trustee: Corzine mismanaged firm's growth

Source: Reuters

MF Global trustee: Corzine mismanaged firm's growth

By Nick Brown and Aruna Viswanatha

NEW YORK | Mon Jun 4, 2012 6:10pm EDT

(Reuters) - Jon Corzine failed to address MF Global Holdings Ltd's growing liquidity needs as he tried to build the commodities broker into a global investment powerhouse, helping create the conditions that led to its downfall, a trustee in MF's bankruptcy said on Monday.

In a blistering 275-page report, James Giddens, the trustee liquidating the company's broker-dealer unit, said he might bring civil claims against former Chief Executive Corzine and other top MF Global executives for negligence and breach of duties to customers.

Giddens also said he was prepared to sue JPMorgan Chase & Co, one of MF Global's main banks, if he and the bank could not settle within 60 days claims that the bank played a role in the disappearance of customer funds. To date, JPMorgan has returned $89 million of customer funds and $518 million of general MF Global assets, the report said.

Giddens has estimated that $1.6 billion disappeared from customer accounts when the company, which filed for bankruptcy on October 31, 2011, improperly mixed client funds with its own money.

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7 replies

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MF Global trustee: Corzine mismanaged firm's growth (Original Post) Eugene Jun 2012 OP

Is that what they are calling cheating, these days? Demeter Jun 2012 #1

No, they are saying Corzine was an incompetant CEO banned from Kos Jun 2012 #2

Cheating is not the same as stealing Demeter Jun 2012 #3

you are correct! Celebration Jun 2012 #6

And completely fucked up the firm's death..n/t Po_d Mainiac Jun 2012 #4

really, ya think?! katty Jun 2012 #5

I like this guy Giddens. Go after their money; it's what they really love mbperrin Jun 2012 #7

Demeter

(85,373 posts)

1. Is that what they are calling cheating, these days?

Reply to Eugene (Original post)

Mon Jun 4, 2012, 08:47 PM

Jun 2012

banned from Kos

(4,017 posts)

2. No, they are saying Corzine was an incompetant CEO

Reply to Demeter (Reply #1)

Wed Jun 6, 2012, 05:30 PM

Jun 2012

You Corzine Haters have failed. He didn't "steal" a fucking nickel.

That makes Matt Tiabbi the biggest assclown on the internet (again).

Demeter

(85,373 posts)

3. Cheating is not the same as stealing

Reply to banned from Kos (Reply #2)

Wed Jun 6, 2012, 07:04 PM

Jun 2012

cheating is breaking rules and trying to be slick.

Celebration

(15,812 posts)

6. you are correct!

Reply to Demeter (Reply #3)

Thu Jun 7, 2012, 06:46 AM

Jun 2012

Thanks for pointing that out.

I would still call it stealing. He may not have personally profited, but he was using customer funds to try to shore up the firm at the end. He was making inappropriate bets with their money on a long shot to dig the firm out of the hole. He was in no way authorized to do that. No, it did not go into his personal account. Corzine merely presided over a company that stole its own customers' money.
There are at least some indications that he authorized this and lied about his knowledge of it. We will never know the extent of this because there is no way he will be charged with wrongdoing. That in itself is a crime.