As the MF Global bankruptcy filing saga continues, Terrence Duffy, the executive chairman for the CME group told the Senate that Jon Corzine knew about one transfer of $175 million from the customer accounts. Previously, Corzine had testified to the Senate that he knew nothing about any missing money until October 30. This is an interesting date because it was one day prior to MF Global filing bankruptcy. Many people are now questioning whether Jon Corzine has been truthful in the bankruptcy and the Senate hearings.
Currently, there is over $1.2 billion in customer money that is still unaccounted for. The rumor mill created by the financial exchange executive is that Corzine tapped into client’s money to lend it to a European affiliate of MF Global. Duffy has told the Senate committee that he would be referring the matter to the Justice Department and the Commodity Futures Trading Commission which is already investigating the failure of the brokerage.
Jon Corzine worked his way up from the trading floor to the co-chairman of Goldman Sachs. He then took office as a senator, moving on to become the governor of New Jersey. In March 2010, Corzine became the CEO of MF Global and push to transform the bank rates into an investment bank.
As the brokerage bankruptcy continues, all parties involved are distancing themselves from each other about who made the decision to take the customer’s money. All three involved stand by their story that they have no idea what happened to the missing money. The bankruptcy filing of MF Global is just another instance that has caused mistrust by the American people of the banking system.