The Once Celebrated Corzine Resigns from Troubled MF Global


Jon Corzine abruptly resigned as chairman and chief executive of now-bankrupt MF Global Friday, four days after the brokerage collapsed in Wall Street’s largest failures over his losing bet on European sovereign debt.

The brokerage announced that Corzine, a former U.S. senator and ex-New Jersey governor who once headed Goldman Sachs, “will not seek” severance payments totaling an estimated $12 million.
Edward Goldberg, the lead director of MF Global’s board, and Bradley Abelow, the brokerage’s president and chief operating officer, will continue in their current posts, the company said.
“I have voluntarily offered my resignation,” Corzine, 64, said in a separate statement. “This was a difficult decision, but one that I believe is best for the firm and its stakeholders. 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.”
Corzine said he would continue to assist the brokerage and its board as they respond to regulatory inquiries and “issues related to the disposition of the firm’s assets.”
His departure from MF Global, Wall Street’s biggest bankruptcy since the 2008 collapse of Lehman Brothers, came as federal investigators and securities regulators explored whether the brokerage moved millions of dollars out of customer accounts as its corporate financial crisis deepened.
The Wall Street Journal reported Friday that its analysis showed MF Global may have disguised its debt levels to investors by temporarily cutting the debt it was carrying before publicly reporting its finances each quarter.
Source: USA Today | Kevin McCoy

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