Financial News Story of the Day – Former MF Global CEO Corzine May Have Lied to Congress About Missing Funds
MF Global, a now bankrupt investment firm, is all over the news recently as its bankruptcy led to the discovery of $1.2 billion of client money that is now gone. Former MF Global CEO Jon Corzine testified before Congress stating that he was unaware of the location of the missing money and any misuse of client funds. Corzine made the news again today when it was made known that he was aware of a loan of $175 million of client money to a European affiliate company according to the testimony of a CME auditor who worked on the deal. For those who don’t know, CME regulates the business activities of MF Global. Did he or didn’t he? During recessions and other periods of economic hardships, white collar crimes and accounting scandals typically come to light. Regardless of the outcome of this trial, we’ll see if anyone is actually prosecuted or put in jail. Former Countrywide CEO Angelo Mozilo seems to be living quite nicely these days despite being one of the key figures behind the housing bubble collapse that has devastated the U.S. and global economy for more than 4 years (source: Reuters.com).
Excerpt: “CME Executive Chairman Terrence Duffy, testifying to the Senate Agriculture Committee, on Tuesday said a CME auditor participated in a phone call during which an MF Global employee indicated that Corzine knew of the loan.
During an internal CME interview, the auditor also revealed that the loan was for roughly $175 million to a European affiliate of MF Global and was likely made in the last couple of days prior to the firm’s October 31 bankruptcy, Duffy said.”
Daily Finance Summary – Payroll Tax Cuts Extended for U.S. Workers
- Stocks and commodities were both down slightly today
- A payroll tax cut extension for U.S. workers was approved by the House of Representatives
- The Fed Reserve kept interest rates the same and did not signal any future quantitative easing
- Former MF Global CEO Jon Corzine may have lied to Congress according to new testimony
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