Thursday, December 08, 2011

I simply do not know where the money is

Corzine deflects blame for MF Global demise
WASHINGTON (AP) — Jon Corzine will tell a House committee that he doesn't know the location of client money that went missing when MF Global failed, and that he inherited a company that was on a failing course. Yet Corzine says he accepts responsibility for the firm's risky bets, and its customers' losses weigh on his mind "every day — every hour." The former U.S. senator has been subpoenaed to explain how MF Global, which he led for about 20 months, collapsed into the eighth-largest bankruptcy in U.S. history and why an estimated $1.2 billion in client funds is unaccounted for. In his prepared testimony for Thursday's hearing before the House Agriculture Committee, Corzine apologizes to "all those affected" by MF Global's failure. The company filed for bankruptcy protection on Oct. 31. Corzine resigned as CEO on Nov. 3 and hasn't spoken publicly since. "I simply do not know where the money is, or why the accounts have not been reconciled to date," Corzine says in his remarks. He says he can't say whether there were "operational errors" at MF Global or whether banks or other companies have held onto funds that should be returned to MF Global. - MARCY GORDON and DANIEL WAGNER AP

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