Jon Corzine - Meet Bubba

Tyler Durden's picture

The admission is here:

  • MF Global Admits Using Client Money, AP Says
  • MF exec. made the admission in phone call with regulators Monday morning

It's time to get some expert on the ex-MF Global head's mental state and to blame temporary insanity, otherwise, someone is going to be bunking with Bubba very shortly.

From AP:

A federal official says MF Global, the securities firm led by Jon Corzine, admitted to using clients' money as its financial troubles mounted.

 

An MF Global executive admitted that to federal regulators in a phone call early Monday after regulators discovered money missing from clients' accounts, according to an official familiar with the conversation.

 

The official spoke on condition of anonymity because he was not authorized to discuss a preliminary investigation by federal regulators.

 

Government rules require securities firms to keep clients' money and company money in separate accounts. Violating them could result in civil penalties.

 

MF Global, which filed for bankruptcy protection on Monday, faced a cash crunch following multibillion-dollar bets on European sovereign debt.

 

Corzine ran Goldman Sachs Group Inc., and later was governor of New Jersey.