Former NJ gov faces a big fine, but agency wanted the big house
By Ken Kurson • 01/06/17 7:30am
Five years after he oversaw the collapse of commodities brokerage MF Global Holdings Ltd., CEO Jon Corzine is finally paying the piper. The U.S. Commodity Futures Trading Commission (CFTC) sued Corzine for financial indiscretions at MF Global that saw the firm transfer some $700 million of customer money to its own accounts (they also loaned $175 million in customer funds to their U.K. subsidiary). The CFTC agreed to accept $5 million.
The settlement brings to a conclusion an epic run of bad luck for the former New Jersey Governor. His bankrupting of MF Global in October 2011 came less than two years after he lost his re-election bid to Chris Christie (Corzine’s entry into politics had only occurred 9 years before that, when his partners at Goldman Sachs ousted him as CEO when he lost a power struggle to co-CEO Henry Paulson.
With the exception of this account in the Wall Street Journal, all of the press about the settlement missed two key points that distinguish this settlement from most of its kind.