While some federal prosecutors may have jumped to the conclusion that Mr. Corzine’s and MF Global’s actions may have been foolish but not criminal, the New York Times reported in late February that “it is early in the investigation, and regulators and others have yet to finish plowing through the mountain of documentation they received from the company.” Put simply, time is of the essence.
The tangle of relationships between Mr. Holder, Mr. Freeh, Mr. West, Mr. Corzine, MF Global, Covington & Burling, and Morrison & Foerster create, at minimum, the appearance of potential conflicts of interest. As the late Lloyd Cutler, a former White House counsel, stated, “Integrity is not enough.” Conflicts often arise “when a private lawyer enters government service and a matter comes before him affecting his former law firm or its clients.” Therefore, said Cutler, lawyers at firms like Covington & Burling or Morrison & Foerster must “operate at somewhat more distance, their friendships and loyalties — not to mention their financial interests — tie them closely to the corporate officers. The appearance of conflict is as dangerous to public confidence in the administration of justice as true conflict itself. Justice must not only be done; justice must also be seen to be done.”
That can mean but one solution: Mr. Holder must appoint a special counsel to investigate the role of Mr. Corzine and MF Global in the disappearance of $1.6 billion of customers’ money.
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