By Suzanne Cosgrove
CHICAGO (MNI) – The board of directors of MF Global Holdings Ltd.
announced in a statement on the company’s Web site Friday that Jon
Corzine has resigned from all posts at MF Global.
Corzine has confirmed that he will not seek $12 million severance
payments in connection with his resignation, the statement said. “This
was a difficult decision, but one that I believe is best for the firm
and its stakeholders,” he said in his own statement.
Edward Goldberg, the lead director of the board of directors, and
Bradley Abelow, the company’s president and chief operating officer,
will continue in their current positions.
MF Global filed for bankruptcy on Monday after efforts to find a
buyer collapsed. The CME Group, NYMEX and ICE are accepting “liquidation
only” orders from MF Global clients. In addition, the broker-dealer is
under investigation by the Commodity Futures Trading Commission and
other regulators.
As previously reported on MNI, the New York Federal Reserve on
Thursday said its purchase of agency mortgage-backed securities this
week included $950 million of purchases that were made to replace
transactions cancelled with MF Global.
The Federal Reserve said it did not suffer any loss as a result of
the firm’s failure.
The Federal Reserve Bank of New York on Monday suspended MF Global
Inc. from conducting new business with the New York Fed.
Corzine, a former U.S. senator, former head of Goldman Sachs for
five years in the ’90s and also former governor of New Jersey, is now
facing a regulatory investigation of what exactly happened at MF Global
on his watch.
** Market News International Chicago Bureau: 312-431-0089**
[TOPICS: M$U$$$,MMUFE$,M$$AG$,MN$MO$,MAU0B$]
