Also in this playlist...
This transcript is automatically generated
Do you believe the leverage of the firm materially changed under mr.
Corzine I think the important point.
Is not only -- leverage.
But wouldn't count what composes the leverage.
The year before that almost all the leverage that -- it was extremely liquid securities after mr.
The composition of the leverage.
That was IMF global former chief risk officer Michael Grossman testified today.
He -- Jon Corzine -- -- could be M after a long before it was completely asked.
And yet Corzine insisted things were fine until all the money was not congressman Randy -- -- -- chairman of the house committee on oversight and investigations responsible for the hearings.
Joins us now and he's smiling a little about -- MF comments -- no no doubt.
First of what one thing that this shows to -- congressman above all else.
Is that Jon Corzine was a kind of guy who'd been told that he could do no wrong for so long.
Like a lot of governors and a lot of senators that he wasn't listening to anybody who said otherwise right.
That you're let's put it appears because they you know we have mr.
-- -- mr.
-- started raising concerns about this new trade that type.
-- Corzine wanted to put on to increase earnings per in this company have been losing money.
I didn't lack hit the fact mr.
Grossman continued to question him on those issues.
You know than Harding a new risk manager who -- started -- you know saying the same things.
That's kind of interesting with the new risk manager at a different reporting chain the mr.
rose and it.
Now and so far again there's been investigations obviously you have by the FBI -- and criminal authorities about all this.
But no no indictment no no prosecution seems to be pending MI wrong am I missing something about Corzine.
Well so far you know one of the things I think you're trying to do is unravel all of this and try to find out exactly what happened.
Obviously don't know a lot of people are very frustrated particularly those people that lost their customer funds.
You know they're wondering when they're gonna get that money back and certainly they're wondering who's gonna pay for and this breach of of confidence that occurred.
And that one and a half billion I mean every day you read some different one that I believe it was this week I date in one Paper said it was founded another Paper said no.
It's entirely lost any closer to knowing about that.
I think they are getting -- I think they can Trace the wire transfers at the pretty easy process I think what's even more difficult though is finding what was the source of those funds and in who -- -- -- was that in recipient.
Of many of those funds which you can Trace some from bank to bank but it's getting -- -- the banks and -- from the where they went from the banks obviously is a much bigger problem.
And so obviously we have a lot of requesting for information about -- -- with these pending investigations obviously that the law enforcement.
In the regulators are not being as forthcoming.
Now what we also learned for mr.
rose -- today was the following is sort of relates to my first point but.
It's clear that that Corzine had total veto power over anything that went on in that operation this is a rose -- that guy that we saw that sound bite out of the beginning of this segment was.
So is it conceivable that anybody if if customer funds were used which would be -- -- if that happened.
Is it conceivable that that anybody other than Corzine could have ordered.
Well you know what we have mr.
Corzine coming testify he said he didn't get such an order but I think what we're gonna find his -- when the investor based investigation is complete I think we'll have.
A better idea who pulled the trigger on those transactions but certainly somebody pulled the trigger on those because you know just a few days before they filed bankruptcy.
They they put together -- break the glass plan which called for tremendous amount of liquidity.
And -- question is is they actually did they have the liquidity.
Two execute that plan.
But even if technically Jon Corzine didn't didn't pull that -- the lever on that and allow -- customer funds to be used it's clear because the way he ran the operation.
That he would have been responsible right.
-- there's no question who's in charge of -- MF global leader during these months and it certainly John -- our time was calling the shots.
This this particular trade was his his idea was his baby.
And you know he didn't received well let people that didn't like that trade.
You know even he even went to the board at one point in time and said you know what if you don't locked away and run in this thing you know -- resign so obviously Jon Corzine was demanding control.
Chairman -- -- -- thank you very much for coming answer appreciate good to see it thanks for have.
Filter by section