This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

3 Serious Questions Jon Corzine Needs to Answer Now (Update 1)

Story updated to include comments of MF Global's former president and CFO.

NEW YORK ( TheStreet) --Jon Corzine is in the hot seat again on Tuesday, testifying before the Senate Committee for Agriculture, Nutrition and Forestry.

By most lawyers' accounts, the former MF Global (MF) CEO successfully navigated his first testimony before Congress last week, avoiding invoking the fifth amendment but at the same time carefully choosing his words to ensure he was not incriminating himself in any way.

Appearing before the House Committee on Agriculture last Thursday, Corzine answered questions from 46 representatives for over three hours. But the questioning did not really lead anywhere.

At the very outset, Corzine reminded Congress that he had no access to documents or any kind of correspondence since he left the firm over a month earlier. That meant that pretty much anything he said was based on his "recollection".

He also was quick to claim that he had very little involvement of the day-to-day operations and was not an expert on "complicated rules and regulations" governing the various businesses.

He flat out said that he did not know where the missing $1.2 billion is and, further more, he did not know who was responsible for authorizing any transfer from the customer accounts. "I never had any intention to authorize the transfer of segregated monies," he added, repeating the statement at various other points in the testimony.

Corzine will likely stick to that script in his upcoming testimonies before the Senate Agriculture Committee and the House Financial Services Committee that will take place on Thursday.

During Tuesday's hearing fellow MF Global executives added their own denials about using customer funds or directing others to shift assets and that they remain clueless about billions in missing money.

"I understand that the Committee, MFGI's customers and the public have many unanswered questions about customer funds," said former CFO Henry Steemkamp. "I share many of these questions and I am personally extremely frustrated and distressed that they remain outstanding and that client funds are missing."

Former MF Global president Bradley Abelow added during his testimony also said that he remains in the dark about the missing assets.

"I am deeply troubled by the fact that customer funds are missing, and I can assure you that I share your interest, and the public's interest, in finding out exactly what happened." Abelow said. "At this time, however, I do not know the answers to those questions."

Still, Washington will likely press Corzine for answers and observers expect the questions to be more advanced in the upcoming hearings.

1.Seriously? You don't know where the money is?

The missing $1.2 billion will continue to be the main focus of the hearings, as speculation mounts that the transfers were not a result of some inadvertent operational error but a case of fraud.

CME Chairman Terrence Duffy told House Agriculture Committee last week that MF Global had first internally reported to the CFTC a $900 million shortfall on October 28, three days before the bankruptcy, that resulted from an "accounting error." He said a day's investigation found no such error and on Monday October 31 at 2 a.m., MF Global informed the CFTC and CME that customer money had been transferred out of segregation to firm accounts.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $124.24 0.00%
FB $83.01 0.00%
GOOG $555.17 0.00%
TSLA $190.41 0.00%
YHOO $44.47 0.00%

Markets

DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs