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Corzine 'stunned' to learn of missing $1B

Dec. 16, 2011 at 2:00 AM   |   Comments

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WASHINGTON, Dec. 16 (UPI) -- Former New Jersey Gov. Jon Corzine told a House panel Thursday he was not told MF Global was using customer funds to remain solvent just before it collapsed.

Corzine, a Democrat, who became chief executive at MF Global after leaving office in 2010, and Bradley Abelow, the brokerage's chief operation officer, spent more than 5 hours being questioned by an investigative subcommittee of the House Financial Services Committee, The New York Times reported. It was Corzine's third appearance as a witness before Congress in a week.

Corzine, who was head of Goldman Sachs before going into politics, and served in the U.S. Senate before being elected governor, said he had been told "both orally and in writing" that MF Global was keeping customer and firm funds separate as required by federal law. He said he was "stunned" when he was told late Sunday, Oct. 30, that about $1 billion in customers' money was missing. MF Global filed for bankruptcy the next day.

If he had been told what was going on, he would not have permitted it, Corzine said.

Topics: Jon Corzine
© 2011 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
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