Washington: Jon Corzine stepped down Friday from running MF Global, the securities firm that collapsed after his terrible bets on European debt. The move was announced as a criminal probe of the company emerged to be intensifying.
The firm said that Corzine has resigned as chairman and CEO and will refuse a dismissal package worth $12.1 million, including cash and benefits.
MF Global filed for bankruptcy protection Monday after its bets on European debt spooked investors and trading partners. The company is under investigation by regulators and the FBI as hundreds of millions disappeared from customer accounts as it slid toward bankruptcy.
The brokerage has also been targeted by lawsuits trying to recover millions of dollars stolen by two Ponzi scheme architects.
He said in a statement that he feels great sadness about what has emerged at MF Global and the impact it has had on the firm’s clients, employees and many others. He also said that he will persist to help the company and its board as they continue to turnout what happened in the firm’s final days.
MF Global says lead director Edward Goldberg and president and Chief Operating Officer Bradley Abelow will persist in their current positions.