Potential Consequences for Jon Corzine?
CEO to testify on MF Global scandal
- Duration 4:43
- Date Dec 8, 2011
CEO to testify on MF Global scandal
Also in this playlist...
This transcript is automatically generated
Going next here we are we're going to -- -- actually -- few technical difficulties because we really -- -- get our next guest in because this is all about.
What's happening with NF global and the former senator former governor former Goldman Sachs CEO Jon Corzine.
He's about to be grilled about the collapse of this -- -- this was one of the biggest collapses at the financial firm.
In the history of our country.
-- Corzine is making his first appearance since -- firm's failure he says he was stunned when he found out more than a billion dollars is missing from customers' accounts we know that because he released a statement.
That's what he's going to say today in front in this hearing before Ross I have with -- -- Vermont congressman Peter Welsh he's a Democrat on the agricultural committee.
Who is going to be doing some of the questioning today.
Congressman rush -- the big question for all of bison will be talking -- -- here in the studio with the crew is.
How does anyone lose track of more than a billion dollars.
Ballots one point two billion dollars and that's real money even for mr.
Corzine and that's really the fundamental question CFTC is gonna ask in the members of the agriculture committee and by the way this is totally bipartisan.
But what appears to have happened is that they violated MF global violated a cardinal rule for financial companies and trade.
Next customer account money with their own problems and you can -- cross that line.
According to mr.
Corzine's testimony he says he doesn't know that that happened or how it happened I think the obvious question is if you're in charge.
Why didn't you know because -- not firm has to have systems in place that absolutely.
Guarantee the customer money will not be used by the company.
To bail itself out of jams and got into this -- -- -- yeah we'll hear from mr.
It is a big question -- congressman just jumping ahead a little bit.
What happens after he testifies in front end in front of your group the what are the consequences potentially for him.
Well obviously everything he.
He's he's not gonna take the fifth we're told and we originally had been under the impression that was going to happen so obviously he's going to be testifying under oath.
He's got to speak truthfully -- be very careful that he does not strayed from the true.
There will be following this question is the first public come into account for mr.
Obviously this is an enormous fall from grace for him you gave the introduction governor senator -- Goldman Sachs and he's lost a lot of money.
In part by adopting some of these reckless leverage practices that when news and politics he was so critical life.
So there will be follow up work not only by the CFTC and other.
Cop on the beat organizations but by the time.
Congress itself we're gonna have to go through the Paper trails well I don't expect we're gonna get fully answered today.
But we're gonna get a sense here of what mr.
Corzine -- -- should -- now.
You know congress and it will be here we are -- -- -- -- -- we've been through this incredible financial crisis we've seen regulation and reform.
Be passed on from Washington to Wall Street to try to make us feel more secure and our investments need.
We've mentioned about this firm -- taken money from farmers and ranchers in part of the reason why this is -- agricultural committees.
Is because of the way this company was structured and and did business.
But how does in the broader question is is how does this happen now after so much new regulation so -- -- -- How is it that we can invest in in a firm in this country and just a billion dollars to go missing -- there is they're seven.
Either people responsible for this besides simply one CEO and.
You know we don't know the answer that question -- you're getting to the heart of what it's a challenge we cannot have eight functioning financial system.
If there isn't an element of trust as well as a cop on the beat.
And this rule that you don't use customer money for your own from purposes is so bright line.
That to the extent there's any violation it should be prosecuted here very vigorously.
So I don't know what the outcome this what the final facts are they using customer money that going missing there's no excuse for that.
And you know mr.
Lucas that Republican chair mr.
Peterson the democratic ranking -- they both spoke about the importance.
Of the futures market.
There are farmers need at our airlines need.
But it shouldn't become a casino.
Corzine -- forty dollar for dollar he's putting -- and then not have systems in place.
Where if he does make them run that it's just him not as customers he's bringing down.
We'll be following this very closely I know you're working on legislation didn't use it to maybe make the system more secure I know others have that the feeling that the rules are in place they just have to be -- -- -- we look forward to talking to mark congressman.
I thank you as always thank.