Corzine testified that he’d have “trouble giving you the exact statistics” about the control personnel who were on the ground making sure customer money was safe. But then he did get specific, explaining that, yes, MF Global did enhance its compliance and control system to meet the challenges of its riskier business model: “We made changes, upgraded. We also installed a new technology system.”
Rep. Peter King (R-LI) pressed him, asking whether those changes included “new personnel or just reprograms of old personnel?”
Again Corzine was uncharacteristically specific, answering, “No. There were new people at it.”
That’s not what it says in the trustee’s report. The trustee, James Giddens, simply describes what Corzine and his top people did as “negligence.” Contrary to Corzine’s assurances under oath, Giddens said the much-needed upgrades to protect customer money under the new, riskier, business model never took place.