First blood: CFTC takes action against MF Global, Corzine and O'Brien, finally

摘要

As most traders know, brokers have to tape phone calls. So perhaps the most interesting aspect of the Commodity Futures Trading Commission's (CFTC) enforcement action against Jon Corzine, Edith O'Brien and MF Global are the internal phone calls and e-mails between staff when the firm was going down. On June 27, Corzine was charged by the CFTC that MF Global unlawfully used nearly one billion dollars of customer segregated funds to support its own proprietary operations and the operations of its affiliates.... Corzine bears responsibility for MF Global's unlawful acts. He held and exercised direct or indirect control over MF Global and Holdings and either did not act in good faith or knowingly induced these violations, the CFTC stated in its complaint. Likewise, Edith O'Brien, assistant treasurer of MF Global and head of liquidity management, approved and/or caused numerous illegal transfers of customer segregated funds to the Firm's proprietary accounts, and otherwise aided and abetted MF Global's customer segregated fund liquidity.