Great News: Obama Economic Adviser Corzine May Have Actually Lost $1.2 Billion

Posted by on Nov 21, 2011 at 3:23 pm

Not that the media gives a hoot, but Jon Corzine is quickly turning into one of the great swindlers of the 21st century.

The apparent shortfall of customer funds at MF Global Holdings Ltd’s  broker-dealer unit may be around $1.2 billion, about double initial estimates from regulators, the trustee liquidating the company said on Monday.

The amount of money MF Global should have segregated for customers may be short by “$1.2 billion or more,” trustee James Giddens said in a statement. He added that the figure could still change.

Giddens also said he currently controls about $1.6 billion of the brokerage’s funds that he can use to pay back customers whose accounts were frozen when MF Global went bankrupt on Oct. 31. His plans to pay back 60 percent of customer funds by early December would nearly exhaust that amount.

The announcement was Giddens’ first public statement on the amount of money under his control and his estimate of the size of the shortfall, which regulators initially had said was about $600 million.
MF Global was run by former Goldman Sachs & Co  chief and New Jersey governor Jon Corzine before its Chapter 11 filing on Oct. 31. The filing came after the New York-based company revealed that it made a $6.3 billion bet on European sovereign debt. Corzine resigned on Nov. 4.

H/T Andy.

Don’t forget Corzine was Obama’s ally. Well, at least he used to be. We’re just reminding you since the Obamamedia won’t

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