On Thursday, Louis Freeh, one of the two bankruptcy trustees for MF Global and a former head of the FBI, released a report that for the first time squarely places the blame of the demise of the commodities trading firm on one person. Back in March 2010, MF Global’s board of directors created the position of global head of capital and liquidity risk, a response to an earlier trading blunder that had cost the firm more than $100 million. The position was created the same month CEO Jon Corzine, the former Senator and head of Goldman Sachs (GS), was hired to run the firm. So basically Corzine’s first assignment from the board was to hire this person. The job of the global head of capital and liquidity was to be the ultimate guard of MF’s cash, alerting the board if there was any chance the firm would run out. Basically, the buck was supposed to stop there on whether MF had enough bucks. As anyone familiar with the MF Global story will tell you, this person clearly failed, horribly. See CNNMoney report here.
