Is Corzine In Legal Trouble? The 5 Things You Need To Know About MF Global’s Collapse
6:09 pm, November 1st | by Hillary Reinsberg
MF Global, Jon Corzine’s trading firm that filed for bankruptcy in a shocking turn yesterday, is, to put in bluntly, deep in disaster. On top of the bankruptcy, they may have misappropriated customer money — which could land them in hot water with federal regulators. Here’s what you need to know:
1. It seems like MF Global may have diverted some customer funds. In other words, they may have used the cash, not as it was intended, as the company tried to save itself from its downward spiral, says The Wall Street Journal. Not only did that fail to save the company, it also is illegal. And some say it could have diverted as much as $700 million. A senior executive is said to have confirmed this diversion of funds.
2. It could be big trouble for Corzine. The former Goldman Sachs CEO and governor of New Jersey could have a lot of legal problems if it’s confirmed. Bloomberg says there could be “potentially serious charges for CEO Jon Corzine.”
3. Yes, it is as bad as it sounds, if not worse. Many are saying things worked out in the worst way possible, calling it a “nightmare scenario.”
4. MF Global is officially delisted. It’s off the boards, thanks to the bankruptcy filing. According to the New York Stock Exchange, the company is “no longer suitable for listing.”
5. It all happened very, very fast. Late last week, people thought the firm could survive. It’s an illustration of how quickly things can fall apart even for a very well-respected firm led by high-profile people.