Will Jon Corzine, former U.S. senator, former New Jersey governor, former chairman of Goldman Sachs, end his high-profile career in the slam?
In a just world, perhaps he should. But don't bet the farm on it. Corzine's most recent gig, of course, was as head of MF Global Holdings, the firm that went bust when Corzine made some $6.3 billion in unfortunate wagers that European sovereign bonds were a bargain. He was buying when nearly everyone else was selling. (Does the man read the newspapers? What could he have been thinking?)
Nothing illegal about losing your shirt, of course. But MF Global apparently not only bet its own wad but threw over a billion dollars in segregated customer funds into the same transactions; hundreds of millions of money from customer accounts went missing. A lot of the money is still unaccounted for. You can imagine what his clients are saying the "MF" stands for.
Mixing customer money with the firm's own proprietary bets is illegal, big time.