Criminal Negligence at MF Global

I spent an unpleasant few hours watching Jon Corzine play a Congressional Committee like a Stradivarius.  Here is a man with a stellar resume: Goldman Sachs financial genius and CEO, senator from NJ, governor of NJ; CEO of MF Global.  The congressmen, bless their souls, had no idea what actually happened.  Was the risk taken by MF Global excessive?  Mind you, there is no agreed upon definition of "excessive."  Well, the congressmen are sure that it must have been excessive risk, or else how could the firm go under? Is the Dodd-Frank monstrosity at fault for being insufficiently strict?  Nobody knows.  Predictably, Democrats think so, and Republicans realize that it is just arbitrary rule-making by bureaucrats who hate anyone who earns money by investing.  My own view is that Dodd-Frank is irrelevant in this case.  By now, you would think that our congressmen would have educated themselves just a little bit about high finance.  After...(Read Full Article)