Fox: With Questions Mounting, Corzine Steps Down From MF Global, Hires Lawyer

[Patricia M. McBride]

When we look at the mess Corzine has made of MF Global, one could well understand why the state of New Jersey is in the mess it's in.  Corzine is a walking disaster!  Too bad he didn't resign before he took MF down with his poor judgement decisions for investments.

 

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  Reuters

Former New Jersey Governor Jon Corzine resigned as CEO from now-bankrupt futures brokerage MF Global on Friday under a cloud of legal uncertainty that has prompted him to hire a prominent white-collar attorney.

Corzine’s exit comes just four days after New York-based MF Global collapsed under pressure from over $6 billion in risky bets on European sovereign debt directed by the former Goldman Sachs (GS: 107.68, +1.55, +1.46%) chief. Its Chapter 11 filing marked the eighth-largest bankruptcy in U.S. history.

Since its implosion, a string of negative headlines have emerged, including more than $600 million in missing client funds and questions about whether MF Global management may have misled investors about the company’s health.

“This was a difficult decision, but one that I believe is best for the firm and its stakeholders,” Corzine, who became CEO in 2010, said in a statement. “I feel great sadness for what has transpired at MF Global and the impact it has had on the firm's clients, employees and many others.”

In a sign he’s worried about potential prosecution, Corzine has hired Dechert’s Andrew Levander, a well-known white-collar defense lawyer. In the past, Levander served as legal counsel for ex-Merrill Lynch CEO John Thain and outside directors at Lehman Brothers. He has also advised Goldman, Morgan Stanley (MS: 16.95, +0.19, +1.13%) and JPMorgan Chase (JPM: 34.38, +0.74, +2.20%).

Legal experts say Corzine could face criminal charges if evidence emerges that he intentionally misused client funds -- which are supposed to be segregated -- for MF Global’s needs such as collateral calls from counterparties and customer withdrawals. Likewise, Corzine could be under pressure if regulators believe he intentionally misled investors about the financial health of the company in the days leading up to its bankruptcy.

Read more: http://www.foxbusiness.com/industries/2011/11/04/corzine-resigns-fr...