Where’s the Money, Corzine? Obama’s Financial Advisor Jon Corzine Subpoenaed by House Panel to Testify « Frugal Café Blog Zone

Where’s the Money, Corzine? Obama’s Financial Advisor Jon Corzine Subpoenaed by House Panel to Testify

Posted By on December 3, 2011

Pres. Barack Obama with NJ Democratic Gov. Jon Corzine during campaign rally in Newark, NJ, 2009


Jon Corzine, the former governor and New Jersey senator who has advised Pres. Obama and Vice Pres. Biden on national financial matters, has been subpoenaed to testify about the collapse of his commodities brokerage firm MF Global and the disappearance of more than a billion dollars of customers’ money.

Where’s the money, Jon?

From Fox Business News, Corzine Subpoenaed to Appear Before House Panel:

Jon Corzine, the former head of bankrupt commodities brokerage firm MF Global, has been subpoenaed to testify about his role in the collapse before a congressional committee.

Corzine hasn’t been heard from publicly since MF Global imploded in October, the result of bad bets on European sovereign debt, a risky gamble reportedly pushed by Corzine himself.

The House Agriculture Committee, which is looking into the collapse, will question Corzine at a hearing on Dec. 8.

Federal investigators are still trying to locate as much as $1.2 billion in client funds that disappeared as the investment firm collapsed.

Corzine is a former governor and U.S. senator from New Jersey, who, before entering politics a decade ago, was a co-chair of Goldman Sachs.

From Reuters, Congress subpoenas Corzine on MF Global collapse:

A U.S. House committee voted to subpoena Jon Corzine to testify before Congress about the collapse of MF Global, after the former CEO refused an earlier invitation.

The move intensifies pressure on Corzine, who has been largely absent from public view since he resigned as chief executive early last month. His lawyer had previously told the committee that the former New Jersey governor would be unable to attend a hearing set for December 8, the panel’s chairman said on Friday.

From New York Times, House Panel Subpoenas Corzine to Testify in MF Global Inquiry:

Jon S. Corzine, the former chief executive of MF Global, faces up to three Congressional subpoenas, as lawmakers seek to question him about the collapse of his brokerage firm.

The House Agriculture Committee voted unanimously on Friday to force Mr. Corzine to appear at a hearing next Thursday about MF Global, where as much as $1.2 billion in customer money remains missing. Customers of the brokerage firm included farmers and agriculture companies, as well as hedge funds and other investors.

The committee’s hearing will present the first public questioning of Mr. Corzine since MF Global filed for bankruptcy on Oct. 31. Mr. Corzine ran MF Global before he resigned on Nov. 4.

“We agree that his testimony is essential to fulfill our objectives on behalf of our constituents and to complete the hearing record,” the committee’s chairman, Frank Lucas, Republican of Oklahoma, said at the committee meeting.

Mr. Corzine also faces demands to testify from two other Congressional panels. The Senate Agriculture Committee will meet on Tuesday to vote on issuing a subpoena to Mr. Corzine, a move that comes after he did not voluntarily testify by a Friday deadline. The other panel, the oversight subcommittee of the House Financial Services Committee, will meet on Wednesday to vote on issuing a subpoena to Mr. Corzine.

“For the past week, we led a good-faith effort to obtain his testimony voluntarily,” Representative Randy Neugebauer, the House panel’s chairman and a Republican from Texas, said in a statement. “Unfortunately, it has become clear that is not possible so the subcommittee will meet to consider the issuance of a subpoena.”

The disappearance of the customer money from MF Global has also spawned a sprawling federal investigation, with the Commodity Futures Trading Commission leading the search for the missing money and the Federal Bureau of Investigation examining a potential criminal case. The trustee overseeing the liquidation of MF Global’s brokerage unit is also hunting for the customer cash.

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I'm a conservative frugalist. My priorities: Watchdogging the government, making sure our tax dollars are spent wisely, living within our budgets (at home and in Washington, DC), and adhering to our Constitution and the conservative principles upon which it was developed by our founding fathers. Also, loving God, my family, and my country. Be wise, be frugal. God bless America!      


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