Jon Corzine speaks to Congress about MF Global bankruptcy and missing funds

Jon Corzine appeared before a House Committee today to address MF Global’s collapse and explain what happened with customer’s money.

MF Global sought out a bankruptcy attorney after investments into European debt led to a collapse of the firm. After filing for bankruptcy, trustees discovered that billions of dollars were missing from customer accounts. Corzine told the House Committee he did not know what happened to the money and said he never intended to break any laws.

Corzine addressed allegations that MF Global took to many risks, but he stated that during his tenure he reduced leverage. He also stated that he did not generally oversee the clearing and settlement of trades or the movement of collateral and cash, according to Reuters.

Taking risks can be very profitable for some companies, but in uncertain economic times it can lead to failure and force a business to retain a bankruptcy lawyer for protection from creditors.

When asked about the missing customer fund, Corzine said, “Moreover, there were an extraordinary number of transactions during MF Global’s last few days, and I do not know, for example, if there were operational errors at MF Global or elsewhere, or whether banks and counterparties have held onto funds that should have rightly been returned to MF Global.”

In the past few years, there have been major collapses in business and finance sectors. These entities have found it is necessary to hire bankruptcy attorneys to resolve their issues with debt.