Jon Corzine’s MF Global Firm Collapses in Biggest Wall Street Failure Since Lehman Brothers
In a major banking scandal, the commodities and derivatives brokerage house MF Global filed one of the largest bankruptcies in American corporate history, with almost $40 billion in liabilities. It was the largest failure on Wall Street since the collapse of Lehman Brothers in 2008. The chairman and chief executive officer of MF Global is Jon Corzine, a former New Jersey governor and U.S. senator. Corzine is also the former CEO of Goldman Sachs. The firm is the biggest U.S. casualty so far of the European debt crisis. "We just continue to have one financial crisis after another. It’s because of the incentive system on Wall Street, that badly needs to change and has not changed one iota, as we just saw with this bankruptcy of MF Global," says William Cohan, author of "Money and Power: How Goldman Sachs Came to Rule the World." "There’s nothing in the Dodd-Frank law, nothing in the regulations that are being written, that is going to change the incentives."
William Cohan, contributing editor to Vanity Fair and author of several books, including Money and Power: How Goldman Sachs Came to Rule the World.
Michael Hudson, president of the Institute for the Study of Long-Term Economic Trends, distinguished research professor of economics at the University of Missouri, Kansas City, and author of Super Imperialism: The Economic Strategy of American Empire. His website is Michael-Hudson.com.