Tuesday, March 13, 2012

Carney: "Go After MF Global and Its Executives"

From CNBC:

Did MF Global Outwit Regulators and Prosecutors?
...The way to prevent this sort of thing isn't by going after MF Global's counterparties. It's by going after MF Global and its executives.

Over the past several years, I've been a big critic of criminalizing business failure. I thought going after Ralph Cioffi and Matt Tannin, the two men who ran the failed Bear Stearns hedge funds, was a mistake. I suspect that Ken Lay and Jeff Skilling were wrongfully convicted. I don't think Dick Fuld or Jimmy Cayne belong in jail. I've criticized criminalizing insider trading, back-dating stock options, and naked shorting. 

So I've got a pretty good record of resisting popular urges to tar and feather businessmen. 

But MF Global's apparent misuse of customer funds calls out for prosecution....