Former Goldman Sachs and MF Global CEO Jon Corzine stood before the U.S. House of Representatives Agriculture Committee on Thursday, sharing that he did not “intentionally” authorize the misuse of client funds prior to MF Global’s decision to file for bankruptcy, and that he “never intended to break any rules.” Corzine read from a 21-page prepared statement during his appearance before the committee rather than “plead the 5th,” as some had expected he might.
Approximately $1.2 billion in client funds is still missing, although Corzine, a former senator and governor from New Jersey, claimed not to know what happened to these. “I simply do not know where the money is,” he said, “or why the accounts have not been reconciled to date. I do not know which accounts are unreconciled or whether the unreconciled accounts were or were not subject to the segregation rules.”
Under Corzine’s watch, MF Global had put the bulk of its money on European sovereign debt, a practice barred under U.S. securities law. The firm eventually filed for bankruptcy, losing over 1,000 employees in the process.
“I sincerely apologize,” said Corzine, “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.”
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