MF Global CEO resigns, declines severance package

November 4th, 2011 - 8:45 pm ICT by IANS  

Washington, Nov 4 (IANS) Jon Corzine stepped down Friday from running MF Global after the securities firm collapsed under the weight of his risky wagers on European debt.

MF Global filed Monday for bankruptcy protection days after its massive bets on European debt rattled investors and trading partners. It was the first US securities firm to collapse due to the European debt crisis. The bankruptcy was the eighth largest in US history.

Corzine, MF Global said, resigned as chairman and CEO and also will decline a severance package worth $12.1 million, including cash and benefits, reported Xinhua.

The company is under investigation by regulators and the FBI because hundreds of millions disappeared from customer accounts as it slid toward bankruptcy.

Regulators say more than $600 million in client money is still missing. They say MF Global apparently moved the money out of client accounts in mere days as the company’s cash dried up.

Corzine, who ran the investment firm Goldman Sachs and was a US senator and governor of New Jersey before joining MF Global, said in a statement that he feels “great sadness about what has transpired at MF Global and the impact it has had on the firm’s clients, employees and many others”.

He said he will continue to assist the company and its board as they continue to sort out what happened in the firm’s final days.

Related Stories

Tags: , , , , , , , , , , , , , , , , , , ,

Posted in World |

Subscribe