No doubt many know that at the top of the financial news of the week is the implosion of MF Global, a New York based investment firm that went belly up after failing to attract buyers when its balance sheet was called into question by wary federal regulators.
The CEO and leader of MF Global was none other than democrat Jon Corzine, a one time governor and US Senator from New Jersey. Corzine, once a partner at Goldman Sachs and a gazillionaire, was ousted from the NJ governorship by Chris Christie, a former federal prosecutor who will no doubt have a field day with the allegations swirling around the MF debacle.
Potential buyers of MF Global or its component parts walked away from the table when it was discovered, literally in the middle of the night, that $600,000,000 was unaccounted for.
This, of course, raises several questions, perhaps the first of which is how much money are you dealing with when you can not notice, immediately, that $600,000,000 is missing?
So, believe it or not, the best and brightest of Wall street have spent the last few days looking around, here and there, trying to locate the odd hundred million dollars or so that might be parked in this or that account. Let’s hope its a high-yield checking account when they find it.
Yesterday, the NYT reported that, sigh of relief, MF Global funds had been found at JP Morgan Chase. It turned out that it was MF Global money, but not the $600,000,000 they were looking for. That’s right–they found MF Global money that they did not even know they were missing. Should we feel good about that?
It is at this point that one begins to understand how New Jersey got into the mess they are in. Corzine didn’t start their problems but it’s likely he didn’t solve any of them either.
At least one person is visibly concerned. It is reported that J. Christopher Flowers, an MF Global investor, was seen at the negotiations wearing mismatched shoes.
What a MF mess.
Wall Street to the Rescue.