Corzine Resigns From MF Global Days After Filing Bankruptcy
Jon Corzine has resigned from his positions as chairman and chief executive officer of MF Global (NYSE:MF) today after the broker-deal filed the eighth-largest bankruptcy in U.S. history earlier this week.
Corzine quit all of his posts, and will not be seeking severance pay, according to a statement released today by the company.
“I have voluntarily offered my resignation to the Board of Directors of MF Global,” said Corzine in a separate statement. “This was a difficult decision, but one that I believe is best for the firm and its stakeholders.”
Corzine’s resignation comes just four days after MF Global filed for Chapter 11 bankruptcy protection after the company’s bets on European sovereign debt rattled investors. Regulators are now investigating about $633 million missing from MF Global customer accounts. The Commodity Futures Trading Commission has issued a subpoena seeking information about the money.
Corzine, former Goldman Sachs (NYSE:GS) executive and governor of New Jersey, sought to transform MF Global into a mid-size investment bank after arriving there in March 2010 following a failed bid for re-election in 2009.
Under Corzine’s leadership, MF Global acquired $6.3 billion of Italian, Spanish, Belgian, Portuguese and Irish debt. Concerns that it might lose that money led to credit downgrades, margin calls, and demands from regulators to boost capital before MF Global ultimately filed bankruptcy. Before the filing, MF Global’s share price had more than halved since the beginning of August.
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“I feel great sadness for what has transpired at MF Global and the impact it has had on the firm’s clients, employees and many others,” said Corzine in his statement. He has vowed to continue to assist the company in responding to regulatory inquiries and in the “disposition of the firm’s assets.”