House Committee Blames Corzine for MF Global Collapse

Probe led by House GOP says Corzine expanded before ensuring the profitability of the core business.

MF Global Holdings Ltd. collapsed last year because of mistakes made by former chairman and chief executive officer Jon S. Corzine, according to a summary of findings from a probe led by U.S. House Republicans.

Corzine expanded into new areas of business without ensuring its core commodities trading business, according to the findings released today by Representative Randy Neugebauer, the Texas Republican and chairman of the U.S. House Financial Services subcommittee that pursued a yearlong investigation into the collapse. Corzine, a former U.S. senator, governor of New Jersey and Goldman Sachs Group Inc. co-chairman, has testified to Congress that he doesn’t know what happened to the money.

Returning Money

MF Global, which filed the eighth-largest U.S. bankruptcy on Oct. 31, 2011, is returning money to customers who faced a $1.6 billion shortfall as part of the firm’s liquidation.

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