Trustee Blames Corzine, Execs for MF Global’s Misuse of Client Funds: Wall Street Roundup

Seeking redress: The bankruptcy trustee assigned to recover claims on MF Global’s U.S. brokerage unit pointed a finger at Jon S. Corzine, erstwhile CEO of the failed broker-dealer, in a 275-page report published yesterday. James Giddens, the trustee, may pursue claims of “breach of fiduciary duty and negligence” against Mr. Corzine and other officials, charging that MF Global failed to improve controls to keep client funds safe to coincide with an increase in risk-taking, the Wall Street Journal reports.

Questions for Jamie: Andrew Ross Sorkin has some questions for Jamie Dimon ahead of the JPMorgan chief executive’s visit with the Senate Banking Committee on June 13. The hearing should be used as an opportunity to draw out information on the risks in the U.S. banking system, and not merely another performance of “Washington Gotcha Theater.”

JPMorgan may report a second-quarter loss of $4.2 billion in its chief investment office, ISI analyst Ed Najarian said in a research note.

Whither Europe: A Spanish budget minister urged European leaders to move faster to support Spain’s floundering banks, noting that spiking borrowing rates left Spain effectively locked out of capital markets.

Shall we lunch? Goldman Sachs CEO Lloyd Blankfein testified in the insider trading trial of former-McKinsey & Co. boss Rajat Gupta yesterday, but The Times reports the testimony was largely uneventful. The lone bright spot? Mr. Blankfein asked if the court would schedule the continuation of his testimony around a lunch the bank boss had planned for his daughter’s high school graduation. The Blankfeins’ reservation was for a restaurant in Yonkers, where Judge Jed Rakoff lives. Did His Honor know the place? “If it’s the one I’m thinking of, I can’t afford it,” Judge Rakoff said.

KKR brass tops list: Henry Kravis was the most highly paid executive at large U.S. financial firms last year, earning $30 million in salary and other compensation, while partner George Roberts was second at $29.9 million, according to Bloomberg Markets Magazine. Mr. Kravis and Mr. Roberts, founding partners of KKR, the private equity firm that went public in 2010, took home an additional $64.2 million in dividends and other distributions accrued to their stakes in the company.

Emerging market: Steve Wynn’s newest Macau casino will cost $4 billion to build, even as the island-gambling destination reported slower revenue growth.

Banker passes: Marion O. Sandler, the pioneering Wall Street woman who built Golden West Financial into one of the largest thrifts in the country, is dead at 81. Ms. Sandler and her husband Herbert sold Golden West to Wachovia in 2006, and came in for a share of blame when the bottom fell out of the U.S. housing market. The Sandlers sank much of the $2.4 billion they reaped from the Golden West sale into charities, The Times reports, including ProPublica, the investigative journalism outfit.


  Trustee Blames Corzine, Execs for MF Global’s Misuse of Client Funds: Wall Street Roundup