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MF's Corzine back in the firing line

Tuesday, December 13, 2011 - 02:13

Dec. 13 - Former MF Global head Jon Corzine told lawmakers in his second appearance, he never instructed anyone to misuse customer funds. Bobbi Rebell reports.

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PLEASE NOTE: THIS EDIT CONTAINS CONVERTED 4:3 MATERIAL Former MF Global chief Jon Corzine testified in front of his former Senatorial colleagues- clarifying his previous testimony on the money missing from customer accounts: SOUNDBITE: JON CORZINE, FORMER CHIEF EXECUTIVE OFFICER, MF GLOBAL (ENGLISH) SAYING: "I want to be clear. I never gave any instruction to misuse customer funds. I never intended anyone at MF Global to misuse customer funds." Futures brokerage MF Global filed for bankruptcy on October 31st, after it was forced to reveal it bet more than $6 billion on European sovereign debt. That caused ratings downgrades and in turn investors fled. A court appointed trustee estimates that more than a billion dollars in customer money is missing from accounts that should have been segregated. Testifying alongside former MF Global President and COO Brad Abelow and the former CFO Henri Steenkamp, Corzine was asked by Senate Agriculture Committee Chairwoman Debbie Stebenow: where is the money? SOUNDBITE: JON CORZINE, FORMER CHIEF EXECUTIVE OFFICER, MF GLOBAL (ENGLISH) SAYING: "We need the facts on that and it is not only from those of us who don't see those records but even those people who now have those records it's a very, very difficult task." Meanwhile, thousands of customer accounts have been frozen. Some of those customers testified to the Senate committee earlier in the day, including Minnesota corn and soybean farmer Dean Tofteland: SOUNDBITE: DEAN TOFTELAND, CORN AND SOYBEAN FARMER (ENGLISH) SAYING: "It is kind of confusing how this all works, but in any bankruptcy when you have customer funds in any business it's got to be kept separate. It's like if I bring my pickup to the car dealership to get the oil changed and over the weekend they close the doors. The bank comes in and the next day they put my pickup on the lot with the cars that are going to be foreclosed on and you know my pick up is my pickup so- its customers- it really should not be an issue". He and his fellow farmers and ranchers testified that they are now unable to use the futures markets to hedge their business, causing further losses. Bobbi Rebell, Reuters

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MF's Corzine back in the firing line

Tuesday, December 13, 2011 - 02:13