Corzine defends himself against claims of shifting customer funds

{mosads}The former New Jersey governor and Democratic senator has appeared before multiple congressional panels in the last several days, as lawmakers search for answers on how MF Global collapsed, and what happened to up to $1.2 billion in customer funds that have gone missing.

However, Corzine and his fellow top executives have provided little in that regard, repeatedly informing frustrated members that they do not know where the money went, and that they never approved any transfer of funds.

On Tuesday, Corzine’s prior vows that he knew nothing about the missing money came under scrutiny. A witness that testified after Corzine before the Senate Agriculture Committee asserted that Corzine was aware of loans made with customer funds to a European affiliate.

Terrence Duffy, the executive chairman of CME Group, which monitored MF Global, told lawmakers that a CME auditor had been told by an MF Global employee that Corzine was aware of a $175 million loan made to the affiliate, and that this information had been passed along to regulators and the Justice Department.

Corzine said Thursday that Duffy’s accusation may relate to an overdraft situation MF Global was trying to rectify with JPMorgan Chase in the final days of the firm. In an effort to free up cash, MF Global was trying to sell billions of dollars in securities to the Wall Street firm, but was told it had to clear up some overdrafts in London before the transaction could proceed. Corzine said he instructed employees in the firm’s Chicago office to deal with the situation, and was told “explicitly” that any transfers were done appropriately.

Thursday’s appearance draws to a close a trio of hearings devoted to MF Global where Corzine has been brought forward by subpoenas.

—Bernie Becker contributed to this report.