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.
“Choices made by Jon Corzine during his tenure as chairman and CEO sealed MF Global's fate,” Neugebauer said in an e-mail statement. “By expanding MF Global into new business lines without first returning its core commodities business to profitability, Corzine ensured that the company would face enormous resource demands and exposed it to new risks that it was ill-equipped to handle,” the report states.
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