Wall Street applauded Jon Corzine’s appointment. MF Global shares rose 15 percent the week his hiring was announced. The day it filed for Chapter 11 protection, MF Global disclosed a shortfall in customer accounts that people with knowledge of the matter said may be about $700 million. As regulators scrambled to arrange a merger to avoid bankruptcy it became apparent there would be no takers. It is now becoming clear that MF Global used its customers' money to finance its risky investing. No sane institutional investor would touch a deal that brought with it untold civil liabilities and a probable criminal investigation.
The loss to Republican Chris Christie in the 2009 governor’s race effectively ended the New Jersey political career of Corzine but last April he hosted, in his home, a fund raiser for President Obama. Obama knows fat cat that Wall Street types are a greedy and corrupt breed and now his good friend is about to offer public proof. Besides the pro forma SEC investigation there are now reports of a pending FBI investigation.
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