The New York Times is reporting that regulators have opened an investigation into missing funds at MF Global, the now-bankrupt investment firm run by former Gov. Jon Corzine.
It seems the unaccounted for client money – which as of this evening totaled about $700 million – killed a deal that would have saved the troubled firm from bankruptcy.
According to the story, the money may just be “stuck in the system” and could trickle in over the coming weeks.
Either way, Corzine, who will reap a cool $12 million in severance, will no doubt take a hit over the bankruptcy. While his reputation as a politician was pretty much destroyed when his own party sat on its hands and watched him lose two years ago, his cred as a Wall Street whiz remained (many would say undeservedly) intact. After all, $250 million in personal wealth doesn’t lie.
Now it’s likely the former governor will join some of these folks in the annals of Wall Street history.