Corzine Knew MF Made Loan From Customer Accounts, Duffy Says

[Freddie Stubbs]

Dec. 13 (Bloomberg) -- MF Global Holdings Ltd. Chief Executive Officer Jon Corzine knew that the company made a loan out of segregated customer accounts before it went bankrupt, CME Group Inc. chairman Terrence Duffy told the Senate today.

Duffy, whose company is MF Global's regulator and principal exchange, faced questions about a shortfall of some $1.2 billion in missing customer funds. CME and Commodity Futures Trading Commission staff had been told a discrepancy existed in the customer funds, which by law are required to be kept separate from company funds.

On Oct. 31, the day MF Global filed the eighth-largest bankruptcy in U.S. history, "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 it had made for the customer -- from the customer segregated accounts," Duffy said today.

Corzine in earlier testimony said that he couldn't explain why money was missing from customer accounts, and that he had been surprised to find out that money was missing from customer accounts on the night of Sunday Oct. 30.

more: http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2011/12/13/bloomberg_articlesLW62VU0D9L36.DTL

[Aerows]

1. Of course he did

He just repeated the "I don't know, I don't recall, I don't remember" hand-waving that all crooks repeat when they get caught.

He should be under the jail, not just in it.

[spanone]

2. he was the boss.