MF Global Employee Says Corzine Knew Funds Were Taken From Customer Accounts
During Senate Hearing, Terrence Duffy of the CME Group says that Corzine knew loans were made from customer accounts. During a conference call that occurred between the CME Group and MF Global participants were told Corzine was aware that funds from customer accounts were being used. (December 13, 2011)
Terrence Duffy, Executive Chairman Of CME Group: “CFTC and CME staff and auditors returned to the firm on Sunday, October 30th, and were informed by MF Global employees that this discrepancy was caused by, quote, ‘an accounting error.’ Our auditors worked with the CFTC devoted the rest of the day and night Sunday to find the so-called ‘accounting error.’ No such error was ever found. Instead at about 2:00 a.m. Monday morning, October 31st, MF Global informed both the CFTC and CME at approximately the same time that the shortfall was real and that customer segregated funds had been transferred out of segregation to the firm's broker/dealer accounts. After receiving this information, CME remained at MF Global while MF Global attempted to identify funds that could be transferred into segregation to reduce or eliminate the discrepancies. A CME auditor also participated in a phone call with senior MF Global employees wherein one employee indicated that Mr. Corzine knew about the loans that were made from the customer segregated accounts. CME group has provided this information and the names of these individuals to the Department of Justice and the CFTC for investigating these matters.” (Committee On Agriculture, Nutrition, And Forestry, U.S. Senate, Hearing, 12/13/11)
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