No One Will Charged With a Crime for the MF Global CollapseSubmitted by go213mph on Fri, 08/17/2012 - 08:07
This is proof that customer funds will NOT be protected if stolen by executives of banks or financial institutions. GET YOUR MONEY OUT OF THE BANKS and money market accounts. You have been warned.
The company placed a grossly outsized bet (more than $6 billion worth) on the health of the European debt market last year and when it went south, the firm "borrowed" money from the accounts of its customers to try and salvage its own losses. Most of the blame for those trades fell on its CEO (and ex-New Jersey governor) Jon Corzine, and while his reputation and firm are ruined, it seems he will escape any legal sanction. He could still face massive civil lawsuits or fines from regulators who have a lower standard than a criminal prosecution, but jail isn't in the cards.