The end of the MF Global drama is near, as Federal officials are winding down the investigation into how the commodities trading firm lost $1 billion of customer money, Azam Ahmed and Ben Protess of Dealbook report.And now that the smoke is clearing, it looks like top executives at the company, including former New Jersey Governor Jon Corzine, will not face criminal charges.
In case you need a refresher — last October, MF Global collapsed under the weight of a $6.3 billion bad bet on European debt. Executives were upbeat until the company’s final moments, when they were forced to file for bankruptcy. Congress held hearings and regulators got involved, but customers still don’t know where $1 billion of their money went.
After interviewing MF Global employees, however, Federal reportedly believe that what felled MF GLobal was recklessness, not criminality.
And if he’s able, sources tell Dealbook, after all this is over, Jon Corzine is thinking about starting a hedge fund.
Mr. Corzine, in a bid to rebuild his image and engage his passion for trading, is weighing whether to start a hedge fund, according to people with knowledge of his plans. He is currently trading with his family’s wealth.
Not to say that Jon Corzine is definitely going to walk away scott-free. Regulators can still file civil charges, according to the report, and he still faces lawsuits from customers that could cost him millions. Corzine could also be banned from the financial industry as a whole.
So investors may not be able to give him their money just yet.