Former New Jersey Senator Jon Corzine took a hit from fellow Democrat Rep. Maxine Waters of California today at a House Financial Services Committee hearing.
Capitol Hill lawmakers are focusing on the collapse of MF Global Holdings Ltd. and Thursday’s hearings examined “apparent discrepancies in public comments made by the company and its own internal documents that indicated heightened risk concerns in the weeks before its collapse,” reports the Wall Street Journal:
“Attention at a congressional hearing centered on an internal MF Global document called ‘Break the Glass,’ which laid out extreme financial stress scenarios the firm could face and how to respond to them, in apparent contrast to upbeat comments from former Chief Executive Jon S. Corzine the same month.”
Rep. Waters, addressed fellow members of the financial services committee and was severely critical of Mr. Corzine, saying that there “was no question” he “violated many rules of the game.”:
“Thank you very much Mr. Chairman, it’s clear to me what was taking place at MF Capital and I think that this information has come out in previous hearings, Mr. Corzine basically was a one man show. He was the chairman and CEO and he threatened the board when they got in the way of his sovereign trading, he was glad when Mr. Roseman left, he hired his own people, he did his thing. And so I think there’s no question that Mr. Corzine violated many of the rules of the game in terms of being the chief and prolific trader that emerges out of all of this information. My real concern is what happened to the customer assets? And the loss of 1.2 billion in these customer funds. Mr. Stockman, what do you know about the decision that was made to utilize these customer funds, despite the fact they [that] were supposed to be segregated and protected?”