Jon Corzine Is Playing Dumb In Front Of Congress Today

Former NJ governor Jon Corzine is testifying in front of Congress today to explain what he knew of the collapse of MF Global. And basically he'll be saying he had no idea! According to prepared testimony, he says he was "stunned when I was told on Sunday, October 30, 2011, that MF Global could not account for many hundreds of millions of dollars of client money. I remain deeply concerned about the impact that the unreconciled and frozen funds have had on MF Global’s customers and others."

Corzine took the job heading brokerage MF Global after losing re-election to Chris Christie. However, the former Goldman Sachs chairman resigned after the firm couldn't find $700 million in client funds last month.

While now-out-of-work MF Global employees blame Corzine's love of risk, Corzine will be saying today, "Recognizing the enormous impact on many peoples’ lives resulting from the events surrounding the MF Global bankruptcy, I appear at today’s hearing with great sadness. My sadness, of course, pales in comparison to the losses and hardships that customers, employees and investors have suffered as a result of MF Global’s bankruptcy... I simply do not know where the money is, 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... Moreover, there were an extraordinary number of transactions during MF Global’s last few days, and I do not know, for example, whether there were operational errors at MF Global or elsewhere, or whether banks and counterparties have held onto funds that should rightfully have been returned to MF Global."

Corzine is not expected to plead the Fifth; you can read his testimony here (PDF).

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By Jen Chung in News on December 8, 2011 11:02 AM

Comments [rss]

ANGRYGOD11

Its not illegal to be a clueless idiot. However, if he signed off on the financial statements that turn out to be false, he can be held financially responsible. It might be scarier to these people to really lose every last dime than serve time.

"Tim Osman"

It might be really fun if he loses all his money and has to serve time as well

ANGRYGOD11

You could be right as forced sodomy isn't fashionable at minimum security prisons.

nicemarmot

I kinda feel like if you invest your money with a dude who's too stupid to wear a seatbelt, you can't be too surprised when your money disappears.

ANGRYGOD11

I never understood why everyone makes such a big deal about the seatbelt. If I was a governor riding in an armored limo with a police detail with sirens, I might not buckle up either. Only in hindsight does his action seem incorrect.

"Tim Osman"

Corzine will not be able to weasel his way out of this, not when the politicians will be so eager to throw him under the bus and make an example out of him

Mordicai

He was a crook then, he's a crook now, & when they let him off the hook he'll be a crook in the future. Having a little (D) after your name isn't going to disguise the fact that you are a corrupt plutocrat, Corzine.

Rocknrope

So basically he's saying he didn't know jack shit about how the company was operating, which, as CEO, is his goddamn job.

It's interesting to note that MF Global purchased the futures trading operations of Refco when their CEO, Phil Bennett, basically did the same thing MFG did by hiding losses each quarter to make their balance sheet look better. Bennett's serving 16 years. What are the chances Corzine will do the same?

Politburo

I don't absolve Corzine of any responsibility, but that's really more the COO's job.

FU Boy

Ever the policitican. "I'm sorry, your honors, I do not recall the events that lead to the loss of nearly a billion dollars. Guess I was just asleep at the wheel. Sorry!"

Roger_the_Shrubber

Crook.

seattlesnow

Note to OWSers, he is a friendly aka democrat so go easy

"Tim Osman"

This dude is just as much the enemy - the label democrat or republican is meaningless

Eric Luke

That's worse. If you're going to run a financial firm into a $1 billion black hole, don't "pretend" to have sympathetic liberal values. Hypocrite, moron, & thief.