Boss goes in face of criminal inquiry
Source: Agencies |
November 5, 2011, Saturday
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Print Edition
Print Edition
JON Corzine yesterday stepped down from running the securities firm that collapsed after his disastrous bets on European debt.
The move was announced as a criminal inquiry into the company appeared to be gathering pace.
The firm, MF Global, said Corzine has resigned as chairman and chief executive and will decline a severance package worth US$12.1 million.
MF Global filed for bankruptcy protection in the US on Monday after its bets on European debt spooked investors and trading partners.
The company is under investigation by regulators and the FBI because hundreds of millions disappeared from customer accounts as it slid toward bankruptcy.
Before joining MF Global, Corzine ran investment firm Goldman Sachs and was governor of New Jersey.
He said in a statement that he feels "great sadness about what transpired at MF Global." He said he will continue to assist the company and its board, adding that his resignation is voluntary and calling it "a difficult decision."
Regulators said more than US$600 million in client money is missing. They said MF Global apparently moved the money out of client accounts within days as the company's cash dried up.
Corzine has hired criminal defense attorney Andrew Levander of lawfirm Dechert, according to a source.
The FBI was examining whether MF Global's actions violated criminal laws, sources said.
The New York Post reported that US Attorney Preet Bharara in New York City is also investigating.
Securities firms such as MF Global are supposed to keep client money separate from company money so clients can claim assets easily if the company fails.
The move was announced as a criminal inquiry into the company appeared to be gathering pace.
The firm, MF Global, said Corzine has resigned as chairman and chief executive and will decline a severance package worth US$12.1 million.
MF Global filed for bankruptcy protection in the US on Monday after its bets on European debt spooked investors and trading partners.
The company is under investigation by regulators and the FBI because hundreds of millions disappeared from customer accounts as it slid toward bankruptcy.
Before joining MF Global, Corzine ran investment firm Goldman Sachs and was governor of New Jersey.
He said in a statement that he feels "great sadness about what transpired at MF Global." He said he will continue to assist the company and its board, adding that his resignation is voluntary and calling it "a difficult decision."
Regulators said more than US$600 million in client money is missing. They said MF Global apparently moved the money out of client accounts within days as the company's cash dried up.
Corzine has hired criminal defense attorney Andrew Levander of lawfirm Dechert, according to a source.
The FBI was examining whether MF Global's actions violated criminal laws, sources said.
The New York Post reported that US Attorney Preet Bharara in New York City is also investigating.
Securities firms such as MF Global are supposed to keep client money separate from company money so clients can claim assets easily if the company fails.
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