Another Criminal Financial Firm Goes Bust

Wall Street firm MF Global has gone bankrupt in the wake of a massive loss of confidence from investors who found out the firm had a $6.3 billion bet on the credit of some pretty shaky European countries. Much worse than simply making a large, risky bet which had the potential to destroy the firm and put 3000 jobs at risk, MF Global seems to have also used its clients’ money to make these bets for its own accounts. This mixing of client and corporate accounts is highly unethical and probably illegal.

Where were the regulators? Why is this kind of thing still happening? Will anyone be prosecuted for their illegal behavior? Maybe you should ask US  Attorney General Eric Holder. The main person behind this risk-taking at MF Global? Jon Corzine, former Goldman Sachs CEO, New Jersey governor, and US senator (D-NJ). Can such a powerful man be held accountable in today’s America?

More coverage of the story can be found at Bloomberg Business Week.