This looks bad for Corzine

Bloomberg:
MF Global Holdings Ltd., under investigation by U.S. regulators after filing for bankruptcy protection, violated requirements that it keep clients’ collateral separate from its own accounts, the head of the world’s largest futures exchange said.
Craig Donohue, CME Group’s chief executive officer, said on a conference call with analysts today that MF Global isn’t in compliance with the rules of the exchange and the Commodity Futures Trading Commission.
“While we are unable to determine the precise scope of the firm’s violation at this time, we are investigating the circumstances of the firm’s failure,” Donohue said.
MF Global, the holding company for the futures broker run by former New Jersey Governor and ex-Goldman Sachs Group Inc. Co-Chairman Jon Corzine, is being investigated by regulators for hundreds of millions of dollars that may be missing from client accounts, according to two people with knowledge of the matter.
... 
From my many years experience in the brokerage business, I am at a loss to think of any legitimate reason how this could happen.  On the surface it looks like an egregious breach of a fiduciary duty to safeguard a clients money.

Update: Tim Carney notes that most of the stories about this failure, also failed to mention that Corzine is a Democrat and none mention that he is a maximum donor to Obama's DNC reelection effort.  I think the DNC should give the $30,8000 to the trustee in bankruptcy for MF Global.

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