Tuesday, December 13, 2011

More: Corzine knew of $175M loan

From the Washington Post online:

A financial-exchange executive said that Jon Corzine [former co-Chairman of Goldman Sachs, U.S. Senator, New Jersey Governor] might have known that MF Global customers’ money was transferred earlier than Corzine has admitted.

CME Group Inc. Executive Chairman Terrence Duffy told a Senate panel that Corzine knew before Oct. 30 about a transfer of $175 million in the form of a loan to a European affiliate of MF Global.

Corzine, a former senator, has testified that he didn’t know any customer money was missing until Oct. 30, the day before MF Global became the eighth-largest bankruptcy in U.S. history....

Under a 2002 anti-corporate-fraud law that Corzine co-wrote as a U.S. senator, the CEO and chief financial officer of public companies must personally certify the accuracy of their company’s financial statements. It can be a violation of the law for executives to sign a false statement.

The three executives say that they didn’t become aware of the shortfall until hours before the firm filed for bankruptcy protection on Oct. 31....

The Senate panel is one of three committees to have issued subpoenas to compel Corzine’s testimony on the issue. It marked the first time a former senator has been subpoenaed by his former peers in more than 100 years, according to the Senate historian’s office....

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Link: http://www.washingtonpost.com/business/corzine-and-2-other-top-mf-global-executives-deny-role-in-missing-12b-of-clients-money/2011/12/13/.html

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