MF Global’s former CEO Jon Corzine will apologize to the fallen company’s investors, customers and employees, Bloomberg reported.
The failed brokerage firm filed for bankruptcy at the end of October, leaded to Corzine’s resignation. But the loss of an estimated $1.2 billion in client money has been MF Global’s biggest downfall and Corzine admitted he doesn’t know where the money went.
“I simply do not know where the money is, or why the accounts have not been reconciled to date,” Corzine said in a statement prepared for a House Agriculture Committee hearing in Washington today, Bloomberg reported.
Read more at GlobalPost: MF Global shortfall could be more than $1.2 billion
The former New Jersey governor is scheduled to testify Thursday on events leading to MF Global’s bankruptcy.
MF Global went bankrupt after bad bets made on sovereign debt in the euro zone crisis. Soon after regulators discovered the missing funds, which started at an estimated $700 million and jumped to over a billion less than a month later. Now regulators hope to discover just where the money went. Some investigators believe it may have been used to cover trading losses.
Read more at GlobalPost: Regulators vote on 'MF Global rule'
Corzine said he accepted responsibility for MF Global’s risky bets and said his customers’ losses weigh on his mind “everyday, every hour,” the Associated Press reported. In the testimony he will give, he apologizes to every party affected by MF Global’s failure. But Corzine says he can’t say whether the money was lost due to “operational errors” or whether companies held on to money that should have been returned to MF Global, the AP reported.
Corzine wrote that he will answer all questions rather than invoke the Fifth Amendment right against self incrimination, because he recognizes the importance of congressional oversight,” USA Today reported. MF Global is currently under investigation from industry regulators and the US Justice Department.
Read more at GlobalPost: Jon Corzine resigns from bankrupt MF Global