MF Global Exec Points Finger at CEO

by Alyssa Oursler | September 11, 2012 3:01 pm

MF Global Exec Points Finger at CEO

Last year, MF Global‘s  (PINK:MFGLQ[1]) meltdown began when news broke that the firm has been dipping into customer accounts to cover a huge bet on the debt of Italy and Spain.

It ended with the firm being unable to account for around $1 billion in customer funds and then filing for bankruptcy.

But the company’s fate is still far from over.

The investigation continues and, most recently, MF Global’s chief financial officer for North America, Christine Serwinski, told investigators that the company’s CEO Jon Corzine, was “well aware of the use and possible misuse of the customer funds during the firm’s final days,” Fox Business Net reports[2].

This is big because it could mean jail for the CEO.

Still, Serwinski’s statements contradict what Corzine previously testified and, according to Corzine’s spokesperson, of course, what she herself testified in the initial days following MF Global’s bankruptcy.

That initial account, though, has not yet been disclosed. And an attorney representing Serwinski wouldn’t deny that she pointed to Corzine’s possible accountability then as well.

Investigators have said, though, that a lot of evidence concerning those missing funds seem to point simply to human error.
Endnotes:
  1. MFGLQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=MFGLQ
  2. Fox Business Net reports: http://www.foxbusiness.com/industries/2012/09/11/exclusive-mf-global-cfo-said-corzine-knew-about-misuse-funds/#ixzz26BmNNazg

Source URL: http://investorplace.com/2012/09/mf-global-exec-points-finger-at-ceo/
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