In a NY Times piece, Teresa Tritch wrote about Louis Freeh’s recently released investigative report of what went wrong when MF Global collapsed in October 2011 due a wayward trade strategy on European debt. At the firm’s helm was former Senator and Governor of NJ Jon Corzine who has not been heard from since (save a few congressional hearings where he said little). Freeh’s report summarized that Corzine “knew, or should have known” about weaknesses in the firm’s internal risk controls. Tritch wrote that the report suggests that “Mr. Corzine passive-aggressively let those weaknesses endure, because stronger controls would have put an end to his bigger-is-better trading strategy.” While Corzine was not criminally prosecuted, and most likely never will be, those loose internal controls that were tolerated within the company cost one young man years in prison … Evan Brent Dooley. More in Forbes here.
