Before we get to the story, here are two good editorials on Corzine and MF Global:
- Corzine Forgot Lessons of Long-Term Capital
- Others Pay Price for Corzine’s Risky Revenge: William D. Cohan
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Federal prosecutors and the FBI are set to join the inquiry into what happened to hundreds of millions of dollars invested with a securities firm headed by former New Jersey Gov. Jon Corzine, officials familiar with the case told NBC New York.
The Justice Department involvement comes as the Securities and Exchange Commission and the Commodities Future Trading Commission have said their own inquiry is underway into the collapse of the brokerage firm, MF Global Holdings Ltd.
The head of the Chicago Mercantile exchange said Tuesday that the firm broke rules requiring it to keep clients' money and company funds in separate accounts.
U.S. Attorney Preet Bharara declined to comment Tuesday as did DOJ spokesmen in New York and Washington. An FBI spokesman also declined to comment.
An SEC spokesman said there are “possible deficiencies in customer futures segregated accounts held at the firm.” The Securities Investor Protection Corporation has announced liquidation of MF Global is now underway.