Justice Dept. Going Easy on Corzine?

Corzine photoToday’s headlines that Jon Corzine gave “direct instructions” for MF Global customer money to be moved to another account to cover a $175 million overdraft raises big questions about how this case is being handled. Congressional Committee’s are imperfect investigative vehicles, but this time the House Financial Services Subcommittee on Oversight and Investigation has really scored. By digging out and making public an email from MF Global assistant treasurer Edith O’Brien, the Committee has done a huge public service.

But surely the investigation of the disappearance of $1.6 billion deserves a more formal process than “trial by headline.” Just where is the Justice Department in all this? We do not know, but we do know that Attorney General Eric Holder has been the protector of corrupt Democratic politicians in Congress. Rep. Charles Rangel admitted to not paying his taxes, and admitted to leaving hundreds of thousands of dollars in income …

The MF Global Collapse Explained (And Why It Should Be a Crime)

Corzine photoAnybody using the financial services industry puts their faith and trust in a whole lot of people they have never seen or ever will. We all rely on regulators and regulations that are instituted by state and federal governments.  In fact, almost anybody who has any savings probably has them parked in one of our financial institutions. To sharpen your focus on this, remember that about 80% of the balance of your checking account is tied up in loans that some strangers have promised to repay.

As a test of your thinking, how would you like to invest in this, as described in Wikipedia?

…2005 saw Man Financial make its largest deal with the transformative $323 million acquisition of client assets and accounts from entities of Refco, following the U.S. financial-services group’s collapse in late 2005. The Refco deal…boosted Man Financial’s scale in retail and institutional business.

In June