Corzine Accepts Responsibility for European Investments
Former MF Global CEO says he has no idea where missing funds are.
Compiled by staff
Published: Dec 9, 2011
Subpoenaed former MF Global CEO Jon Corzine told the House Ag Committee Thursday he was devastated by the losses to farmers, ranchers and other investors, and he apologized. But the former New Jersey Governor and Senator claimed under oath that he doesn’t know what happened to more than a billion dollars in farmer and other investor funds.
"I was stunned when I was told on Sunday, Oct. 30, 2011 that MF Global could account for many hundreds of millions dollars of client money," Corzine said. "I remain deeply concerned about the impact that the un-reconciled and frozen funds have on MF Global's customers and others. I simply do not know where the money is.”
According to MF Global Liquidation Trustee Lead Counsel James Kobak, the investigation is ongoing but the trustee is not in a position to make any definitive conclusions. Kobak testified that the trustee says even if he could recover everything that is presently available at U.S. depositories there will be a significant shortfall.
Corzine accepted responsibility for investments in European sovereign debt made before the Eurozone debt crisis, but denied they led to MF Global’s collapse, the eighth largest in U.S. history, and denied any role in moving customer money from segregated accounts to company accounts, a serious violation of futures trading rules.
"I'm not in a position, given the number of transactions, to know anything specifically about the movement of any specific funds," Corzine said. "I will repeat I certainly would never intend to direct or have segregated funds moved.”
Court-approved transfers could make up close to 70% of the account losses, still leaving a huge shortfall.
Corzine is set to testify next before the Senate Ag Committee and the House Financial Services Committee.
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