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Corzine Subpoenaed to Appear Before House Panel

December 2, 2011

Via FOX Business

Jon Corzine, the former head of bankrupt commodities brokerage firm MF Global, has been subpoenaed to testify about his role in the collapse before a congressional committee.

Corzine hasn’t been heard from publicly since MF Global imploded in October, the result of bad bets on European sovereign debt, a risky gamble reportedly pushed by Corzine himself.

Federal investigators are still trying to locate as much as $1.2 billion in client funds that disappeared as the investment firm collapsed.

Corzine is a former governor and U.S. senator from New Jersey, who, before entering politics a decade ago, was a co-chair of Goldman Sachs

In congressional hearings already held, questions have been raised whether Corzine used his extensive Wall Street and political ties to shield his risky strategy from regulators who might have otherwise taken issue with his aggressive bets on the troubled euro zone.

Investigators have questioned whether Corzine authorized the use of client money to be mixed with MF Global money to help cover losses as the European debt crisis deepened. Investment firms are barred from mingling their clients’ money with the firm’s proprietary investments.

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