A former executive at the center of the meltdown of brokerage firm MF Global appeared before Congress on Wednesday to answer questions from lawmakers. Members of the House Financial Services Committee were hoping assistant treasurer Edith O'Brien would explain the actions of the firm's CEO, ex-New Jersey Gov. Jon Corzine.
On Friday, we reported that former New Jersey Gov. Jon S. Corzine directly ordered $200 million transfered from a segregated customer account to an MF Global account in London, according to a memo from the House Committee on Financial Services.
Originally published on Fri March 23, 2012 8:50 pm
Former New Jersey Gov. Jon S. Corzine directly ordered that $200 million from a segregated customer account be transfered to cover a $175 million overdraft in a London account. That's according to a memo (pdf) from the House Committee on Financial Services, which is scheduled to hold a hearing next week about the spectacular collapse of MF Global.
The Senate passed a bill Thursday to explicitly ban insider trading by members of Congress and the executive branch, and that means the Stop Trading on Congressional Knowledge Act is headed to the president's desk.
But this STOCK Act is quite a bit weaker than earlier versions.
The STOCK Act has been on a glide path ever since an explosive 60 Minutes story last fall highlighted the issue of members of Congress apparently profiting on nonpublic information.