Corzine Denies Knowledge on the Whereabouts of MF Global Customers’ $1.2 Billion

On 28.12.11, In Legal Industry, by Blake Houser

December 28, 2011

 

Jon Corzine, the former chief executive of MF Global, apologized Thursday “to all those affected” by the collapse of the brokerage as he told a congressional committee that he does not know what happened to the $1.2 billion in missing customer funds.

Corzine, who testified under subpoena at a hearing conducted by the House Agriculture Committee, said that he was also stunned at the massive shortfall that materialized as federal investigators and regulators probed the Oct. 31 bankruptcy of MF Global. Corzine, 64, used to be the chief of Goldman Sachs and was once a Democratic U.S. senator.

In his first public comment since he resigned, he said, “I simply do not know where the money is, or why the accounts have not been reconciled to date.”

Rep. Frank Lucas, a Republican from Oklahoma and the Chairman of the House Agriculture Committee, voiced his concern for farmers and ranchers, as well as other former customers of MF Global, whom he said are “looking for answers” about the financial losses and ambiguity caused by the bankruptcy.

When asked by Rep. Lucas as to whether there was a shortfall in customer funds, Corzine said, “I only know what I read.” Corzine later added that he first learned about “unreconciled accounts” the night before the bankruptcy filing.

Corzine, in a written statement which he submitted to the committee, said that he does not have access to company records and his own notes since he resigned, which is why he could not really be precise on some issues surrounding MF Global.

Blake Houser

Client Relations Manager at The Wells & Drew Companies
About the author:
Blake Houser is Client Relations Manager at Wells & Drew. In addition, he is the third generation in this family-owned speciality printing business.

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