Today, Jon Corzine appears before the first of several Congressional committee's regarding the bankruptcy of MF Global and the disappearance of client funds. Corzine, a former senator, New Jersey governor, and Goldman Sachs CEO, released his prepared testimony (here) this morning where he expressed "deep concern" for those effected by the MF Global collapse.
MF Global went bankrupt on Oct. 31st following a disastrous bet on European sovereign debts, supposetly led by Corzine. Following the bankruptcy, regulators discovered that around $1 billion in customer funds had disappeared, apparently being misused by the company to cover its bad bets.
Here are a few questions from New York Times' Steven Davidoff would like to ask:
1) Why did you ignore your chief risk officer's warnings against betting on European sovereigns?
2) Were you aware that client money was being used to support MF Global’s trades, and if so, why did you not stop it? Who do you think is responsible for this misuse of client money?
3) Had this trade worked out, MF Global could have made up to $750 million in profit. Was taking these types of large bets your business plan for MF Global?
Corzine has not yet testified. We will be updating this article throughout the day.
To watch the testimony live, tune into CSPAN here.
Photo Credit: Paul Lowry