Corzine's Way: Lose a Billion, Start a Fund

Earlier this summer, Jon Corzine looked like he was having a bad time in the Hamptons. Well, if media reports are to be believed, the sun has come out for the former New Jersey governor and disgraced former head of MF Global.

• MF Global: Sifting Through the Ashes
• MF Global Corporate Trustee Sees Return of All Customer Funds
• MF Global's Disappearing Cash
• After MF Global, Risk Management Again Takes Center Stage

Last fall, Corzine's firm lost $1.2 billion in customer funds while attempting to cover a bad bet in the Euro that cost the firms an estimated $6 billion. Hearings and embarrassing news coverage later, the Feds look like they will not to be charging Corzine for any wrong-doing. According to the NYTimes Dealbook, "Mr. Corzine has not yet received assurances that he is free from scrutiny, but two rounds of interviews with former employees and a review of thousands of documents have left prosecutors without a case against him, say the people involved in the investigation who spoke on the condition of anonymity."

Not bad for a man who looked like he was caught moving client cash around to cover a very bad bet. Allegedly, of course.

But the real kicker of the Dealbook story comes later. Take it away, reporters Azam Ahmed and Ben Protess.

Mr. Corzine, in a bid to rebuild his image and engage his passion for trading, is weighing whether to start a hedge fund, according to people with knowledge of his plans. He is currently trading with his family's wealth.

Yep, that's right. Turn $1 billion into vapor - hat tip to Zero Hedge for that lovely image - ruin your reputation and start a hedge fund. The mind reels.

The banks that brought themselves to the brink of economic collapse take a bailout and continue to hand out bonuses as if it were business as usual. A head trader inside JPMorgan bets badly to the tune of $6 billion and counting and yet the CEO still thinks that Dodd-Frank is too limiting. A leading market-maker/brokerage unleashes a trading algorithm without properly testing it.

With some of the behavior on Wall Street, it's a miracle that people still trust them with their money.