December 8, 2011
Editor’s note: Following opening statement at Corzine’s House hearing, the video and audio feed on C-Span went mysteriously dead.
It looks like John Corzine’s appearance before a House committee will be little more than a formality. Corzine, the former Goldman Sach’s CEO, New Jersey governor, and boss of MF Global days before it went toes up and made off with $1.2 billion in customer money, is expected to say little or nothing and take the Fifth.
Corzine has retained Andrew Levander, a hired high-powered white-collar criminal defense lawyer, the New York Post reported yesterday. Sources told the newspaper Levander advised Corzine not to tell his side of the story during the House grilling today.
The former MF Global boss has apologized to customers swindled out of money.
The MF Global implosion is the largest since the 2008 bankruptcy of Lehman Brothers, in part triggered by $6 billion in gambling on European sovereign debt.
“I simply do not know where the money is, or why the accounts have not been reconciled to date,” he declared in a written statement. He said he was not sure if there were “operational errors at MF Global or elsewhere, or whether banks and counterparties have held onto funds that should rightfully have been returned to MF Global.”
- A d v e r t i s e m e n t
According to the Associated Press, Corzine will tell Congress he inherited a firm doomed by the risks his predecessors took. Since his resignation from MF Global, Corzine will argue, he hasn’t had access to certain information he might need to “reconstruct the events that occurred during the chaotic days and the last hours leading up to the bankruptcy filing.”
According to Gerald Celente and others swindled by MF Global, Corzine should be arrested, jailed, and put on trial like any other accused felon.
Celente insists that Corzine is not in jail “because he is busy holding 35 thousand dollars a plate dinners for Obama fund raisers… he was slated to be the new US treasury secretary after the brilliant Timothy Geithner left if Obama wins the next term.”
Earlier this year, Corzine was rumored as a possible replacement for the embattled Timothy Geithner at the Treasury.
As Luke Matthews notes, it is not likely Corzine will ever see the inside of a prison cell. He is well connected politically and it is not likely the House or Senate will play hardball with him. Most of the recipients of $111,500 in contributions from Corzine and his relatives since he lost the 2009 election were national committees or U.S. Senate candidates in other states, including $1,000 to Sen. Amy Klobuchar, a Minnesota Democrat who voted to give the Senate Agriculture Committee the authority to subpoena Corzine.