MF Global CEO Steps Down

Jon Corzine, the former governor and senator from New Jersey, has resigned from his post as head of MF Global. The company has been under scrutiny from regulators and investigators following its rapid decline and bankruptcy filing earlier this week.

Copyright © 2011 NPR. For personal, noncommercial use only. See Terms of Use. For other uses, prior permission required.


NPR's business news starts with Jon Corzine out of a job.


INSKEEP: The Wall Street veteran and former governor of New Jersey stepped down today from his latest high-powered job as chairman and CEO of the securities firm MF Global. That company filed for bankruptcy earlier this week.

Negotiations with a potential buyer fell through after the discovery of accounting discrepancies, and now regulators are investigating the investment firm for possible mismanagement of client funds. NPR's Yuki Noguchi reports on Corzine's resignation.

YUKI NOGUCHI, BYLINE: MF Global's statement is simple: Corzine resigned from all of his posts at the investment and commodities trading firm, and he will not seek the $12 million in severance payments specified in his employment contract. The company failed, in large part, because it bet billions on European debt that lost value. But investigators are concerned about an apparent major violation by MF Global. The company admitted to regulators that it had moved several hundred million dollars from its clients' accounts. Those accounts were supposed to be segregated from the rest of the firm's money.

Now attention is focused on Corzine, and whether he might have authorized or known about the transfer from the clients' accounts. Yuki Noguchi, NPR News, Washington.

Copyright © 2011 NPR. All rights reserved. No quotes from the materials contained herein may be used in any media without attribution to NPR. This transcript is provided for personal, noncommercial use only, pursuant to our Terms of Use. Any other use requires NPR's prior permission. Visit our permissions page for further information.

NPR transcripts are created on a rush deadline by a contractor for NPR, and accuracy and availability may vary. This text may not be in its final form and may be updated or revised in the future. Please be aware that the authoritative record of NPR's programming is the audio.



Please keep your community civil. All comments must follow the Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.