I have been reading about this latest disaster, and the newspaper articles are sparse with facts.
WE know that Corzine’s investment fund “MF Global” is insolvent, and that $600 million to $1.2 billion is “missing”.
From what I read, this fund was for well-heeled investors-it involved high risk investments, and many that were based upon the bonded debt of european nations (Greece, Spain, etc.).
My questions:
(1) were his investors well informed about the risks they faced?
(2) what kind of leverage was involved (i.e., does the failure of MFG have the potential to destabilze other funds, banks, etc.)
(3) as founder of the fund, is Corzine personally liable for the losses made by the fund?
My first reaction was that Corzine was another version of Bernie Madoff-however, from what I now read, his managers may well have been the victim of extensive fraud.
At any rate, Corzine’s (unhappy) investors will surely launch a multitude oof lawsuits-what chance do they have to recover anything?