House Subpoenaes Corzine in MF Global Inquiry
Corzine, former Goldman Sachs chief and ex-senator for New Jersey, will be called to testify under oath before the House Agriculture Committee.
An estimated $1.2 billion in customer cash was missing from MF Global’s accounts when the company filed for Chapter 11 bankruptcy protection after making an ill-advised $6.3 billion bet on European sovereign debt.
Bankruptcy trustee James Giddens is leading an investigation into claims that MF Global may have misused customers’ money in its final days of trading as it tried to shore up its finances and save the company from having to seek bankruptcy protection.
Chairman Frank Lucas of the house committee said Corzine’s testimony “is essential to fulfill our objectives.” Corzine, who resigned from the company on November 4, has not yet confirmed whether he will appear.