MF Global trustee criticizes Corzine, execs

Jon Corzine is a former senator and governor of New Jersey.
Jon Corzine is a former senator and governor of New Jersey.

WASHINGTON — A trustee overseeing MF Global says a risky trading strategy and ‘‘negligent conduct’’ by former chief executive Jon Corzine and top managers contributed to the brokerage firm’s 2011 collapse.

A report by the trustee, former FBI director Louis Freeh, said Corzine and his team ignored advice from MF Global’s chief risk officer ontrading strategy and failed to fix gaps in the firm’s system for monitoring cash flows and customer funds.

MF Global failed after it made a $6.3 billion bet on debt issued by Italy, Spain, and other European nations with troubled economies. It was the eighth-largest corporate bankruptcy in US history. More than $1 billion in customer money was missing, much of it since recovered.


Freeh’s findings echo reports issued last year by another trustee and a US House panel.

Corzine stepped down in November 2011. His spokesman called the report ‘‘a clear case of Monday morning quarterbacking’’ that ‘‘intentionally ignores’’ the failure of banks and other MF Global partners to pay their debts.