This article appeared online at TheNewAmerican.com on Friday, October 7, 2016:
Five years ago this summer, former New Jersey Governer Jon Corzine’s high-risk futures and options trading company, MF Global, began having liquidity problems, thanks to risky trades that he had made with company money. When those trades began going sour the firm’s lenders starting issuing margin calls. When he couldn’t meet them, instead of admitting he’d erred by liquidating the failed trades and taking his losses, he simply called up the company’s treasurer and ordered her to raid customers’ accounts to meet the demands.
It’s one thing to risk one’s own money. It’s another thing entirely to push that risk onto unsuspecting and uninformed customers. Even worse, it’s wrong to lie that he never intended to do it.
Now Corzine will pay a small fine and move on.
The details of the final days of MF Global were spelled out by the New York Times last Thursday: