Some encouraging news today in the law suit led by the Virginia Retirement System and the province of Alberta, Canada, against John Corzine, two former MF Global chief financial officers, several independent directors and many banks, including JPMorgan Chase and Goldman Sachs for inflating the firm’s ability to manage risk, obscuring risks from European sovereign debt and improperly accounting for deferred tax assets. It is alleged that all were complicit in the collapse of MF Global and the confiscation of client (pension) assets by JP Morgan:
“A federal judge on Tuesday rejected a bid by former MF Global Holdings Chief Executive Jon Corzine to dismiss investor litigation seeking to hold him, former colleagues and several banks responsible for the futures brokerage’s collapse.
U.S. District Judge Victor Marrero rejected the defendants’ contention that there was no plausible claim that the company’s demise—which culminated in bankruptcy on Oct. 31, 2011—resulted from violations of securities law.
See: Judge rules against Corzine and banks in MF Global law suit“