Jon Corzine Will Get Away With It With a Little Help From His Friends

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[pullquote]Ms. O’Brien declined to cooperate with the investigation without receiving immunity from criminal prosecution. But the government is hesitating to grant her request, according to the people close to the case, fearing that doing so would set a bad example for future investigations.[/pullquote]

A long story in today’s New York Times is headlined MF Global’s Bankruptcy Nears a Happy Conclusion has some good news for former customers who have been waiting 15 months to find out whether they would ever see their money again.  It now looks like they will get 100 percent of their funds back.  Probably without interest, however.  Since many of those accounts were in six figures, even at a low interest rate that’s a bit of a hit.  For example, at a 2 percent interest rate, the loss on $100,000 would be about $2,500.  Not exactly chicken feed (sorry).

Ms. O’Brien declined to cooperate with the investigation without receiving immunity from criminal prosecution. But the government is hesitating to grant her request, according to the people close to the case, fearing that doing so would set a bad example for future investigations.

My prediction: Jon Corzine will walk.  And that’s yet another mark of shame for what’s left of the U.S. justice system.

 

 

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About Tony Lima

Retired after teaching economics at California State Univ., East Bay (Hayward, CA). Ph.D., economics, Stanford. Also taught MBA finance at the California University of Management and Technology. Occasionally take on a consulting project if it's interesting. Other interests include wine and technology.

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