Jon Corzine, the man who led MF Global to one of the ten biggest bankruptcies in U.S. history, thinks he’s due for a comeback. After losing $1.6 billion of client money through illegal transactions the former New Jersey governor wants to have another crack at things.
Mr Corzine’s plans are a stunning example of everything that is wrong with American financial regulation.
By all accounts Corzine should be in jail. In the MF global bankruptcy he moved client money into firm accounts, a serious securities law violation, where he proceeded to gamble it recklessly and pay firm expenses. After these actions caught up with him the company declared bankruptcy and Corzine somehow escaped jail.
Using his vast wealth and connections (Mr Corzine was formerly President of Goldman Sachs) he escaped jail despite his actions being a business school case study in illegal conduct.
With his ego now deflated Mr Corzine would like to come back and manage yet more client money despite showing extremely poor character and losing $1.6 billion of client money. Mr Corzine’s clients were people from main st. America – teachers, fire-fighters and others with pensions managed by his firm.
The fact Mr Corzine is in the securities industry at all is shocking and shows just how toothless the SEC and Justice Department are when it comes to dealing with the fabulously rich and connected. While ordinary inside traders can get years in prison and banned from the securities industry for life, political elite like Corzine get second chances to do more damage to hard working Americans.
Mr Corzine’s ambitions should serve as a rallying cry for increased oversight of financial markets as well as a call to your local elected representatives to ask why, despite knowingly, willingly and clearly breaking the law, is this man not in jail.