Jon Corzine is reportedly planning to start up his own hedge fund.
In the absence of any criminal charges filed against him, former NJ Governor Jon Corzine is reportedly planning to start up his own hedge fund; this as authorities close a ten month criminal investigation into the sudden bankruptcy of his firm, MF Global, and $1.2 billion in client funds that still remains “missing.”
Even if he skates prosecution, there should be regulatory or industry rules that would ban financial executives for, at a minimum, grossly negligent misconduct. People go to prison for stealing a few hundred bucks, while Corzine and the other “Too Big To Jail” banksters go right back to work after billions of dollars magically disappear. Your thoughts?
From The New York Times
No Criminal Case Is Likely in Loss at MF Global
BY AZAM AHMED AND BEN PROTESS
A criminal investigation into the collapse of the brokerage firm MF Global and the disappearance of about $1 billion in customer money is now heading into its final stage without charges expected against any top executives.
After 10 months of stitching together evidence on the firm’s demise, criminal investigators are concluding that chaos and porous risk controls at the firm, rather than fraud, allowed the money to disappear, according to people involved in the case.
The hurdles to building a criminal case were always high with MF Global, which filed for bankruptcy in October after a huge bet on European debt unnerved the market. But a lack of charges in the largest Wall Street blowup since 2008 is likely to fuel frustration with the government’s struggle to charge financial executives. Just a few individuals — none of them top Wall Street players — have been prosecuted for the risky acts that led to recent failures and billions of dollars in losses.
In the most telling indication yet that the MF Global investigation is winding down, federal authorities are seeking to interview the former chief of the firm, Jon S. Corzine, next month, according to the people involved in the case. Authorities hope that Mr. Corzine, who is expected to accept the invitation, will shed light on the actions of other employees at MF Global.
Those developments indicate that federal prosecutors do not expect to file criminal charges against the former New Jersey governor. Mr. Corzine has not yet received assurances that he is free from scrutiny, but two rounds of interviews with former employees and a review of thousands of documents have left prosecutors without a case against him, say the people involved in the investigation who spoke on the condition of anonymity.
While the government’s findings would remove the darkest cloud looming over Mr. Corzine — the threat of criminal charges — the former Goldman Sachs chief is not yet in the clear. A bankruptcy trustee on Wednesday joined customers’ lawsuits against Mr. Corzine, and regulators are still considering civil enforcement actions, which could cost him millions of dollars or ban him from working on Wall Street.
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