Fox Business Network (FBN) brings a report regarding former MF Global CEO, Jon Corzine, and the rumors that he may be starting his own hedge fund. Citing friends of Jon Corzine, who were interviewed by FBN, the report states that a hedge fund is most definitely not in the works for Corzine any time soon.
A close friend told FBN that, ” He’s trading his own money and waiting everything out.” By waiting everything out, it’s safe to bet that he’s waiting to see just how much of his ass will be sued off by disgruntled shareholders of the company he formerly ran.
MF Global collapsed last year, while under Jon Corzine’s leadership, and shareholders and authorities alike are ready to play pin the blame on him. Approximately $1.6 billion of the company’s shareholders’ money is still missing, and no one seems to know where it went. Im just curious; how do you misplace $1.6 billion and not know where it is? If I lose a hundred bucks, I tear the house apart till I find it, and usually I can retrace my steps to where I last had it.
The former New Jersey governor, and CEO of Goldman Sachs (NYSE:GS), definitely knows what type of issues he is facing. He has been keeping a very low profile in the months following the collapse of MF Global and the ensuing investigation. Jon Corzine is a well known Wall Street Democrat, and has helped raise money for president Barack Obama during his first campaign for the presidency. For obvious reasons, he was not on the guest list for hig profile events this year.
The legal side of the case against the executives of Mf Global is liable to bring serious repercussions on Jon Corzine. According to Christine Serwinksi, an executive from MF Global, he knew that customer funds were being mishandled, and possibly misused in investments. FBN states that while Corzine denies ordering anyone to misuse shareholders’ money, his spokesman has not returned requests for comments on the issue.
The Justice Department is facing some difficulty in coming up with a criminal cases against the investor turned politician, turned scapegoat. However, the Commodity Futures Trading Commission, which is the lead regulator of companies like MF Global, has launched an investigation which could lead to many headaches for the man in the coming months.
All of this would seem to be enough to squelch any rumors of Corzine opening up his own hedge fund; after all, who would invest with him following the scandalous collapse of MF Global? Who knows, after his investment in Barack Obama’s failed term as a president, and even worse shortcomings in handling a fiscal budget, would the president be willing to “help a brother out” and give him the startup capital needed for his own hedge fund? After all, would that not be “spreading the wealth” to the less fortunate members of society? I guess we will have to wait and see.