Louis Freeh MF Global Bankruptcy Report Whereas bailouts and rescues often obscure the dirty details of exactly why a particular financial institution failed, bankruptcies have a way of bringing everything to light. Case in point: MF Global, which collapsed into bankruptcy in 2011. This week one of its two bankruptcy trustees, Louis Freeh, issued an investigative report. It states that Jon S. Corzine, MF Global's former chief executive, as well as a former senator and governor of Jersey and a former head of Goldman Sachs, "knew, or should have known" about the "glaring deficiencies" in the firm's internal risk controls that allowed it to careen out of control. It also suggests that Mr. Corzine passive-aggressively let those weaknesses endure, because stronger controls would have put an end to his bigger-is-better trading strategy. By the time the trades bankrupted the company, Mr. Corzine had amassed a $6.3 billion bet on European bonds. Is the report a prelude to litigation? If knowing "negligent conduct," as the report describes Mr. Corzine's actions, is not, at a minimum, a breach of fiduciary duty, what is? If the C.E.O's failure to ensure the adequacy of the firm's internal control is not a violation of the post-Enron Sarbanes Oxley law, what is? But a spokesman for Mr. Corzine has dismissed, disparaged and denied the report's findings. Mr. Corzine has not been charged with anything, and is entitled to defend himself. And for now, Mr. Freeh has agreed to postpone a lawsuit "pending the outcome of the mediation," according to a footnote on the last line of the 124 page report. It's hard to believe that more is coming. Everyone is well aware that federal prosecutors have deemed big banks too big to indict for fear, they say, that aggressive legal action would destabilize the financial system. For unexplained reasons, immunity seems to extend to top bankers as well.