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Mr. Corzine goes to Congress—MF Global scandal update

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There's good news and bad news in this report, and it's the same news.

First the good news. Jon Corzine is going to appear before Congress. The Hill (my emphasis paragraphing):

Former New Jersey Governor Jon Corzine will be making multiple trips to Capitol Hill in the coming days, as a second Congressional committee has voted to subpoena him to appear and discuss the bankruptcy of his former firm, MF Global. The Senate Agriculture Committee unanimously agreed to compel Corzine's testimony Tuesday for a hearing slated for Dec. 13.

"It’s important that citizens come forward and testify when asked by our committee, especially in a matter this serious," said Committee Chairwoman Debbie Stabenow (D-Mich.) "The committee’s bipartisan actions today demonstrate our commitment to understanding what happened to cause the extraordinary collapse of MF Global." [see below for more on Stabenow] ...

Corzine has currently been subpoenaed to appear before the House Agriculture Committee Thursday. And the House Financial Services Committee, which is holding its own hearing on the high profile bankruptcy of MF Global, will vote Wednesday on whether to issue its own subpoena.
Jon Corzine is this guy, also this guy — the guy who, as head of MF Global, appears to have taken his customers' money to cover MF Global's proprietary bets (via swaps) on sovereign debt in Europe.

He lost that bet (or rather, his customers did). Those customers are now being reimbursed at 60 cents on the dollar for the value of their brokerage accounts.

So what's the bad news? Jon Corzine is going to appear before Congress, not a grand jury. Congress is where bankers go in lieu of being charged with anything. Senator Stabenow is just committed to "understanding" what happened. (Pick me; I can explain, and save you all the TV face time.)

Will Jon Corzine ever be indicted?
He's Top 0.1% in spades: a Goldman CEO, a senator, a governor, and a major Dem fundraiser in an election year.

If he does see a jail or a courtroom, it will be revolutionary.
Still true.

(By the way, Debbie Stabenow appears to be a closet PIPA supporter. Your Dem senators at work.)


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