It's hard to know what to think about MF Global. On the one hand, hedge funds are buying up IOUs from those who still don't have their money back from the firm at about 100 cents on the dollar. And the idea that $600 million would just disappear in this day and age is a stretch. It's really hard to spend $600 million ill-gotten customer dollars to zero! Even if you're the imperious CEO of a pirate ship of modern finance, which Jon Corzine only might be. Anyway, put these surmises together and it looks to me like the money went out for collateral calls, and therefore should come back.
On the other, everyone is talking, and they are talking to congressional committees. The firm's lawyer is testiyfing! It may suggest that she doesn't have much to hide ... but to me it looks like the scandal is taking on a Washington style drip-drip reveal-reveal mein that can't be good for Corzine, despite his former senator status. He seems to be handling the matter the right way - with delay. And Washington scandals are arbitrary and random - health care may end up distracting everyone from the dispute such that it just stops being pursued. But it's all a rather strange next step in a still pretty mysterious case.
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