Former New Jersey Democratic Senator and major Democratic donor Jon
Corzine caused brokerage MF Global’s downfall, according to a House
investigative report issued Thursday.
The report by the Subcommittee on Oversight and Investigations accuses Corzine of exposing the company to excessive risk and creating an atmosphere in which “no one could challenge his decisions.” These moves led to the firm’s bankruptcy earlier this year.
The report also reveals Corzine’s cozy relationship with the New York Federal Reserve Bank, which may have garnered MF Global unwarranted benefits.
“Choices made by Jon Corzine during his tenure as chairman and CEO sealed MF Global’s fate,” subcommittee chair Randy Neugebauer (R., Texas) said in a statement.
The firm hired Corzine as CEO and board chairman in March 2010 after several years of troubled finances in the hopes that his experience could help turn around the struggling firm.
Corzine introduced a “strategic plan to transform MF Global into a full-service global investment bank within three to five years” that would be similar to Goldman Sachs, according to the report. Corzine was a senior executive at Goldman.
Corzine consolidated control of MF Global after his appointment as CEO. He brought on Bradley Abelow, his former Chief of Staff while governor, to be MF Global’s chief operating officer. Other senior-level staff changes strengthened his grip on the firm.
Read more: http://freebeacon.com/the-corzine-collapse/
The report by the Subcommittee on Oversight and Investigations accuses Corzine of exposing the company to excessive risk and creating an atmosphere in which “no one could challenge his decisions.” These moves led to the firm’s bankruptcy earlier this year.
The report also reveals Corzine’s cozy relationship with the New York Federal Reserve Bank, which may have garnered MF Global unwarranted benefits.
“Choices made by Jon Corzine during his tenure as chairman and CEO sealed MF Global’s fate,” subcommittee chair Randy Neugebauer (R., Texas) said in a statement.
The firm hired Corzine as CEO and board chairman in March 2010 after several years of troubled finances in the hopes that his experience could help turn around the struggling firm.
Corzine introduced a “strategic plan to transform MF Global into a full-service global investment bank within three to five years” that would be similar to Goldman Sachs, according to the report. Corzine was a senior executive at Goldman.
Corzine consolidated control of MF Global after his appointment as CEO. He brought on Bradley Abelow, his former Chief of Staff while governor, to be MF Global’s chief operating officer. Other senior-level staff changes strengthened his grip on the firm.
Read more: http://freebeacon.com/the-corzine-collapse/
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