Corzine testifies about MF Global collapse

Dec. 8, 2011 at 9:56 AM
| License Photo

WASHINGTON, Dec. 8 (UPI) -- Former New Jersey Gov. Jon Corzine says he doesn't know what happened to hundreds of millions of dollars that disappeared from MF Global.

Corzine, who resigned as CEO of the commodities brokerage Nov. 3., said he was stunned to learn shortly before the firm filed for bankruptcy at the end of October that it could not account for "many hundreds of millions of dollars of client money."

The one-time U.S. senator said he did not generally involve himself in the mechanics of the clearing and settlement of trades, or in the movement of cash and collateral.

"I simply do not know where the money is, or why the accounts have not been reconciled to date," Corzine said in testimony prepared for delivery Thursday to Congress. "I do not know which accounts are unreconciled or whether the unreconciled accounts were or were not subject to the segregation rules."

The firm, which is now in liquidation, was required to keep clients' money separated from its own, the Washington Post said.

More than $1.2 billion may be missing, the newspaper said.

"I sincerely apologize, both personally and on behalf of the company, to our customers, our employees and our investors, who are bearing the brunt of the impact of the firm's bankruptcy," Corzine said

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Topics: Jon Corzine
Latest Headlines
Top Stories
Kurds plan to carve state out of Iraq after fighting stops, leaders say
Kentucky clerk sued for refusing to issue same-sex marriage licenses
Van hauling fireworks catches fire on I-15 near California-Nevada border
Sean 'Diddy' Combs avoids felony rap for attacking UCLA coach
Police arrest N.C. soldier with assault rifle headed to mall photo shoot