Saturday, March 24, 2012

For Whom the Bell Tolls

When the Obama Administration took office Joe Biden went out of his way to praise the financial acumen of John Corzine, former U.S. Senator and Governor of New Jersey. In fact, they consulted with him to help shape the fiscal policy of the new Administration. Corzine went on to be the CEO of MF Global. Ring any bells? MF Global collapsed in October 2011 and was a giant Ponzi-scheme. Now Corzine is under investigation for taking $200M from a customer's account just three days before MF Global went under to cover a company overdraft on the London exchange.

From what I see of the Obama Administration, they learned well from Corzine - run up a huge tab and use other people's money to cover it when it comes due. I wonder if the end result will be any better than it was for Corzine?

www.reuters.com/article/2012/03/24/us-mf-global-memo-idUSBRE82M17920120324

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