MF Global chief to testify before Congress

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A U.S. House committee has voted to subpoena former MF Global chief Jon Corzine to testify before Congress.

The House Agriculture Committee is holding a hearing on Dec. 8 to examine the collapse of the futures brokerage and the ongoing search for hundreds of millions of dollars in missing funds.

"It is this committee's responsibility to shed light on the facts and circumstances surrounding the bankruptcy,'' said Frank Lucas, the Republican chairman of the House committee."

Corzine’s lawyer, Andrew Levander, was not immediately available to comment.

MF Global filed for bankruptcy on Oct. 31, after $6.3 billion in risky bets on European sovereign debt spooked investors and an effort to sell the firm failed. Investigators are searching for as much as $1.2 billion in missing customer funds, which regulators have said the company may have diverted for its own needs.

Corzine resigned as chief executive of MF Global last month.

Congress is holding a series of hearings examining whether regulators and company insiders could have done more to prevent the failure and protect investors, traders and farmers who may be out hundreds of millions of dollars.

On Oct. 31, MF Global Holdings Ltd. declared bankruptcy – the eighth largest bankruptcy in U.S. history. Since then, federal officials have been unable to find a significant amount of the firm’s customer’s money.

The Senate Agriculture Committee has jurisdiction over the sort of commodity trading that MF Global was engaged in, and their hearing on Dec. 13 will be a continuation of the investigation into the firm’s bankruptcy. Other witnesses are to be announced.

Source: Reuters, Senate Agriculture Committee

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NW Indiana  |  December, 05, 2011 at 09:08 AM

If I steal a hundred dollars I am put in handcuffs. That goat, Corzine steals billions and get's to make an appearence in front of congress.

Kansas  |  December, 05, 2011 at 11:00 AM

Yet again the "press" neglects to mention Corzine is a an ex-Goldman Sachs multi-millionaire, ex-Democratic Governor & Senator of New Jersey. And, most importantly, a huge contibutor to President Obama's political campaign. Funny this isn't mentioned, no? Those Democrat Pols & Ex-Pols, always looking out for "the little guy" and the middle class working people.


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