The trustee for the now-defunct U.S. brokerage firm MF Global, former FBI Director Louis Freeh, issued a 124-page investigatory report blasting former MF Global CEO and Obama bundler Jon Corzine for “negligent conduct,” employing trading strategies with lax oversight, and surpassing board-approved limits for European trades.
The report says the vaporization of $1.6 billion of MF Global customer money was largely the fault of Corzine.
“The risky business strategy engineered and executed by Corzine and other officers and their failure to improve the company’s inadequate systems and procedures so that the company could accommodate that business strategy contributed to the company’s collapse,” said the report.
According to The Wall Street Journal:
The report also said Mr. Corzine and his management team failed to improve faulty controls in MF Global’s risk and treasury departments, even after being warned of their inadequacy. Those weaknesses prevented the company from knowing that customer funds were being used to meet MF Global’s needs, the report said…
It was also “almost impossible to properly monitor the liquidity drains…caused by Corzine’s proprietary trading strategy,” the report said.
Even after MF Global’s collapse, the disgraced former New Jersey governor continued bundling high dollar donations for President Barack Obama’s campaign, a move some believe insulated him from being prosecuted by his fellow Obama bundlers at the Department of Justice at the time, including Attorney General Eric Holder, Thomas Perrelli, Karol Mason, and Tony West. Documents uncovered by the Government Accountability Institute (GAI) also revealed that MF Global was a client of Attorney General Eric Holder and then-Assistant Attorney General Lanny Breuer’s former law firm, Covington & Burling.
In February, the National Futures Association refused to ban Corzine from trading with other people’s money.