Tuesday, December 13, 2011

1.2 Billion missing from MF Global Client Accounts

"It wasn't my fault," John Corzine said in his testimony before Congress.  He went on to say that he didn't intend to break the rules.  I am pretty sure Bernie Madoff said the same thing. Chief Operating Officer Bradley Abelow and Chief Financial Officer Henri Steenkamp will also testify and have submitted written testimony attempting to distance themselves from the hands on operation of the company.  The main crux of thier testimony is that is wasn't thier job and they don't know how the money went missing. As the COO and the CFO, it is thier responsibility to make sure that there are compliance procerdures in place to deal sepcifically with co-mingling of funds and leverage and it is thier responsibility to make sure that these procedures are being followed. Steenkamp said he was not aware that there was a problem with clients segregated accounts until October 30th, when he discovered serious issues in fund calculations.  If he was the CFO, how could he miss this, unless someone in the organization was actively hiding it, or he was complicit in the actions.

No comments:

Post a Comment