There's no better argument against the privilege of wealth than Jon Corzine, the clownish former Goldman Sachs CEO who thought his facility for extracting money from a rigged financial game entitled him to run the state of New Jersey. After getting roundly rejected by voters after one term, he got a job from a friend running derivatives firm MF Global. Yesterday it went bankrupt. And today we learned that he's lost $700 million of his clients' money.
That's right—$700 million from client accounts have simply disappeared from MF Global. The missing money first came to light over the weekend as a potential buyer for the struggling firm pored over its books. When it realized that hundreds of millions in client dollars were unaccounted for, it backed out, leaving MF no choice but to file for bankruptcy yesterday.
Now the SEC, the Commodity Futures Trading Commission, and CME Group—a commodities exchange where MF Global did business—are investigating. According to the New York Times, it appears that the firm used client money to finance its own trades, a big no no. Either way, not being able to answer the question, "Where are you keeping the $700 million these folks gave you?" is a sign that something is very, very wrong.
Jon Corzine, the man responsible for all this, is worth a half a billion dollars.
[Image via Getty]