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Former head of AMF global bankrupt MF global -- -- resign.
Yesterday appearing before congress pleading ignorance in his testimony before congress the -- senator from New Jersey governor of New Jersey admitted he had no idea.
What happened to an estimated one point two billion dollars in client money held by MF global.
I know I had no intention to ever authorize.
The transfer of segregated months.
So so that entries as you don't know what do you -- ought.
I certainly couldn't confirm based on what I have him.
Available to me today but I know what my intentions or -- And joining me now one of the congressman trying to get straight answers from Corzine.
Republican Randy -- about.
That will hold its own hearing -- Corzine.
That's next week for congressman great to have you with us.
Leave but we on the program we it's -- first your reaction to the man who ran the company saying he doesn't.
He didn't mean to break any rules he doesn't know -- -- client money is he doesn't know wearable losses occurred that led to the bankruptcy of the firm that.
Which ostensibly was running.
On what we -- -- -- Describe that is whose -- I mean that you'd like you say this is not someone that just came in off the streets started running a company this is a man -- run.
You know Goldman Sachs and he's been governor of the state.
I mean so and and you've got to believe in the last hours and days and weeks that company a lot of decisions were being made that only he he should be making.
And didn't seem to have a lot of recollection.
Of those decisions.
Now to -- one thing terrorists in this -- we can't of that one point two in the numbers really have ranged from variously from 600.
Million to one and a half billion -- -- another 2.2 trillion going up from the trustee to clients so that money.
About five point not to get too far into the weeds here.
It looks like we're gonna see something around 70%.
Of the client money restored to them is that correct understanding on my part.
Well I think those -- some of the early numbers and certainly everybody still trying to get to the bottom of this and found out where the money is and why that's important is -- you know a lot of farmers in rich Russian and small businesses.
You have positions -- this company and now they're having to put more of their working capital.
Up to to hold -- -- these positions in and certainly there than the victims in this situation.
We're talking -- we're talking farmers we were and are desperately need that money to or to run their businesses.
So -- what you're gonna talk with him next week you're gonna have -- before your committee.
Are you giving him credit for -- for at least not hiding behind the Fifth Amendment.
Talking to the committee rather than sit -- -- raising his and the singer played the fifth.
Well certainly we've -- -- -- isn't important ingredient in this but we're really trying to accomplish three things here one we're trying to find out where that money has.
Secondly we're trying to find out what was going on within the corporate culture their children mr.
Corzine should have -- to reflect -- and thirdly.
-- what was going on in the regulatory community at the same time so we witness is going to be a very broad investigation because.
We need to put all the pieces to this puzzle together so that we can really find out what.
MF global amongst other things does highlight the fact that the derivatives market itself a sovereign.
Is hardly -- -- even the so called efforts Dodd-Frank which.
Most people don't consider adequate to the task or or -- encumbered as to what needs to be done in markets.
It's basically -- self regulated industry as was -- global.
With the exception of the change which does have some oversight.
And this is stunning -- Don't you think.
It is and what we've seen is that we're learning and will hopefully we're going to learn more but some regulators -- already Begin to have corruption real suspicions about things going on it.
They've been asked to put up more capital is you know.
And so what we do also we're getting here though is not all the regulators were talking to each other.
And certainly we were promised with Dodd-Frank and -- -- that the secretary treasurer was going to make sure that everybody was talking -- each other.
And we're we're seeing early signs that when necessary would necessarily happening.
And and we've.
And and it's important I think to point out.
Corzine a year long.
You know basically a one year term over its CEO.
At a 35 year old chief financial officer.
Who's basically an accountant worked on the account but.
-- -- He's got to have some interest answers for you as well absolutely and and we wanna hear from all of those people -- think another interesting thing to -- it was the fact that the you know the federal reserve bank of a New York right I gave this company of various just -- -- Designation of primary deeper steps.
Only twenty companies have that and so I mean there there are lot of pieces is asset disposal and it's important.
To the markets to bring some certainly back to that in some confidence.
That we get to the bottom of this and obviously amongst those concerns.
That there will be examined.
I assume will be the relationship the political and personal relationships.
The former governor of New Jersey that CEO of MF global.
The president United States.
And the various regular regulators who have connections of one kind or another backward correspondent.
Any number of places that he's.
Are called him.
A place in the -- It's little and were asking for a what kinds of contacts that were made with all of those the -- players that you just mentioned because we think it's an important part of this puzzle.
Our congressman it is great to see you thank you very much and all the best to walk in your investigation -- human -- --
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