WASHINGTON (AP) — A trustee overseeing MF Global says a risky trading strategy and “negligent conduct” by former CEO Jon Corzine and his top managers contributed to the brokerage firm’s collapse in late 2011.
A report issued Thursday by the trustee, former FBI director Louis Freeh, says Corzine and his team ignored the advice of MF Global’s chief risk officer regarding trading strategy.
The report says they also failed to fix gaps in the firm’s system for monitoring its cash flows and customer funds.
MF Global filed for bankruptcy protection in October 2011. More than $1 billion in customer money was discovered to be missing.
Freeh acts on behalf of MF Global creditors. His findings echo those of reports issued last year by another MF Global trustee and a U.S. House panel.