Corzine and Congress; or, where can that $1.2 Billion be?

Former Democrat governor and senator from New Jersey John Corzine has been serve with a subpoena to testify before Congress about the bankruptcy of MF Global. Until the bankruptcy of the commodities trading firm, Corzine was the Chief Executive Officer of MF Global. For those of you who do not know, MF Global was a brokerage house that specialized in buying and selling commodities like corn, wheat, pork bellies and other agricultural products. Not all that long ago, the Corzine led firm made a substantial purchase of certain European sovereign debt, bonds from Italy, Spain and other troubled countries. As conditions in Europe got worse, MF had to cover the losses it incurred. And that is the problem. It appears that MF took funds from its clients accounts and used those funds to pay off its own debts. As of now, there is about 1.2 billion dollars of client funds missing and no explanation of where it went.

It is important for folks to realize that for the most part those whose accounts were looted by MF Global were farmers and ranchers who were using the commodities markets to sell their products. Thousands of small farms and ranches will be left destitute because the money at MF Global disappeared.

There is no legal way for MF Global to take the funds from its clients' accounts and use that money for its own purposes. It will be interesting to watch Corzine appear before a congressional committee only to claim the right to avoid self incrimination as provided for in the fifth amendment.