Jon S. Corzine, the former U.S. senator and New Jersey governor who presided over the collapse of the commodities brokerage MF Global, says he cannot explain what happened to “many hundreds of millions of dollars” that the firm was holding for customers.
In testimony prepared for delivery to Congress Thursday, Corzine says 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 says, 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 may be missing, the trustee overseeing the firm’s liquidation said last month.
The FBI, the Commodity Futures Trading Commission and other authorities are investigating and have had difficulty figuring out what happened to the missing funds.
Meanwhile, the firm’s collapse has become a major disruption for customers and others who depended on MF Global.
Corzine says he does not know which MF Global customer accounts remain “unreconciled” and whether they were subject to the rules about keeping client funds separate from those of the firm.