Tuesday, June 5, 2012

MF Global Trustee's Report

When financial wrongdoing's unveiled,
Of a scope that can scarcely be scaled,
One is sadly resigned
That justice will find
There are none to be judged and/or jailed.

The trustee in the MF Global bankruptcy has issued his report, but it will disappoint those looking for a swift path to justice against those responsible for the misuse of $1.6 billion of customer funds. James Giddens, who is unwinding MF Global US brokerage unit, offered little insight beyond the well-known facts: "My investigation has concluded that management's actions, along with the lack of sufficient monitoring and systems, resulted in customer property being used during the liquidity crisis to fund the extraordinary liquidity drains elsewhere in the business." Although he may pursue legal action against former CEO Jon Corzine and others for taking excessive risks and failing to safeguard customer funds, Mr. Giddens drew "no conclusions" about criminal wrongdoing or regulatory violations, citing his lack of authority in those matters. Well, no worries - that should leave the field open to the unrelenting avengers of the SEC and the Justice Department... right?

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