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August 16, 2012

Report: Criminal Prosecutions for MF Global Failure Unlikely 
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A federal probe into the failed commodities and derivatives brokerage
house MF Global is unlikely to result in any criminal prosecutions of
top executives. MF Global filed for one of the largest bankruptcies in
U.S. corporate history last year with almost $40 billion in liabilities.
It was the largest failure on Wall Street since the collapse of Lehman
Brothers in 2008. Regulators later discovered up to $1.2 billion in
customer funds that should have been kept segregated were missing. But
the New York Times reports federal investigators have concluded that the
losses were due to mistakes rather than fraud. Former New Jersey
governor and U.S. Senator Jon Corzine, who headed MF Global, would be
among those to evade prosecution.

 

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