Dec. 8, 2011 – “I simply do not know where the money is,” Jon Corzine said about $1.2 billion in client funds that disappeared from MF Global Holdings, a brokerage firm specializing in options and futures trading. The former New Jersey governor and U.S. senator testified before Congress about presiding as CEO over the eighth largest bankruptcy in American history.
Corzine was reported to earn “as much as $5 million in salary and bonus” from MF Global in 2010, according to the Newark Star-Ledger.
Corzine repeatedly told Congress he only became aware of the $1.2 billion shortfall Oct. 30th, one day before his company declared bankruptcy. “I never intended to break any rules,” MF Global’s CEO said.
It is widely expected his company’s clients will bear the direct hit from the losses; but stockholders share in their pain. “MF Global shareholders have been basically wiped out,” Scott Rubin wrote in Forbes.
Prior to his political career, Corzine had been the co-chairman of Goldman Sachs. Rubin estimates he received $400 million dollars upon leaving the firm.