Get Out Of Jail Free?

MF Global, a mid-sized brokerage run by Jon Corzine, filed for bankruptcy today. According to the NYT, a deal to sell the company to Interactive Brokers collapsed on Sunday night when IB discovered that client funds were missing and unaccounted for. Now Jon Corzine is about as well connected to the banker-politician oligarchy as one could possibly be. Not only has he been CEO of Goldman Sachs, but more recently he also served as Democratic governor of New Jersey. If you are looking for the 1%, he is it. So it will be very interesting to see if he will be allowed to walk away from this train wreck, especially if it turns out that there has been conversion of client funds.

President Obama is desperately putting his Wall Street stock in an unlikely old buddy.

The beleaguered president has recruited former Goldman Sachs head honcho Jon Corzine to shore up re-election funds from the banking industry, which is furious over Obama’s financial regulations.

Corzine, the former governor of New Jersey who was blasted out of office by Republican Chris Christie in 2009, has attended secret meetings with the president and has been working on Obama’s 2012 campaign for months, The Post has learned.

Apparently Corzine is entitled to a $12 million “golden handshake.” Want to bet that he not only walks but gets his money, even though it seems clear from the media reports that he is the “rogue trader” behind the losses. This will be a good indication of the depth of the rot of corruption in the Obama administration. Meanwhile many MF Global clients are out of business and may be facing the potential for huge losses.

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