Jon Corzine to tell House panel he doesn’t know where customers’ money went

Posted: December 8, 2011 in US News

David S. Hilzenrath
Washington Post
December 8, 2011

Jon S. Corzine, the former U.S. senator and New Jersey governor who presided over the collapse of the commodities brokerage MF Global, said he cannot explain what happened to “many hundreds of millions of dollars” that the firm was holding for customers.

In testimony submitted to the committee on Thursday, Corzine said he was “stunned” to learn shortly before the firm sought bankruptcy protection at the end of October that MF Global could not account for the money.

“I simply do not know where the money is, or why the accounts have not been reconciled to date,” the former MF Global chief executive said, according to the testimony.

Regulators pushed MF Global into bankruptcy court on Halloween after an effort to sell the troubled firm unraveled. The firm is now in liquidation.

The firm was required to keep clients’ money separated from its own. But more than $1.2 billion might be missing, the trustee overseeing the firm’s liquidation said last month. An attorney for the trustee reiterates that assessment in testimony submitted for Thursday’s hearing.

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