Report blames Corzine for MF Global mess
The political discourse in the U.S. colors just about every public issues these days.
A recently released Congressional report paints a damning picture of Jon Corzine's disastrous stewardship of MF Global, and Republicans have been quick to publicize it. Given that Corzine was once a prominent Democrat, it's obvious that a political element is clearly at work in all this, but that doesn't mean that the conclusions of the panel aren't worth exploring.
The report essentially holds Corzine responsible for the $1.2 billion in missing customer money. According to the summary report, Corzine blew off warning signs about MF Global's liquidity position and he obstructed attempts by the company to embrace sound risk management policies, including his own loyalists in sensitive risk management positions. All that amounts to a "dereliction of duty" that left the company vulnerable to the kind of disaster that eventually engulfed it.
Unfortunately, it appears as though there will be no consequences for any individual executive, apart from possibly Edith O'Brien. Certainly, Jon Corzine himself has escaped without facing personal charges, a fact that frustrates many. In the end, it seems like the prosecutors just couldn't come up with the goods. The full report is coming soon.