Attempts are being made to sweep MF Global under the media rug in hopes that investors simply forget the eighth largest bankruptcy in US history despite clear allegations of documented fraud surrounding the firm and its politically connected former president, Jon Corzine. The problem is, astute financial observers are aware of the corruptive behavior of Mr. Corzine, certain regulators and the US justice system. Some are calling into question the security of the entire US financial system, not just the commodity industry.
"At the center of questionable activities is the bankruptcy process itself, loaded with recognizable personalities. Among them, Louis Freeh, the former director of the Federal Bureau of Investigation (FBI), who has been accused of dragging his feet on a fraud investigation of top MF Global executives. A trustee for the creditors in the Chapter 11 bankruptcy case, JP Morgan Chase, MF Global’s largest creditor, was said to have actively recruited Mr. Freeh for the trustee position, despite his law firm having but a handful of lawyers and no commodity industry or bankruptcy experience. However, because this is a Chapter 11 bankruptcy, the process can drag out and Mr. Freeh and his related business endeavors could stand to pull in over $100 million in fees on the “plum case.”..."