Former MF Global head Jon Corzine directly authorized the transfer of $200 million of customer funds to fill a gap in one of the firm’s accounts, according to congressional investigators.
A memo released Friday by investigators on the House Financial Services Committee quotes an email from a treasurer for the firm sent days before the investment company collapsed, saying the transfer was “Per JC’s direct instructions.” The transfer was intended to cover a $175 million overdraft in one of the firm’s accounts with JPMorgan.
The revelation comes just days before that panel’s investigatory subcommittee is set to hold its third probe into the high-profile collapse of the firm, and what role the former New Jersey governor and Democratic senator played in its implosion. The memo was first reported on by Bloomberg News. . .