Bad News Builds for MF, as Board Resigns, Corzine Gets Second Subpoena
MF Global received more bad news Friday as the bankrupt financial firm's remaining directors all resigned and its former CEO faced subpoenas from two congressional committees.
Late Friday, Dow Jones Newswires reported that MF Global's seven remaining directors resigned from the board earlier this week, following the appointment of a trustee to oversee liquidation of the bankrupt holding company.
Directors David Bolger, David Gelber, Eileen Fusco, Martin Glynn, Edward Goldberg, David Schamis and Robert Sloan all resigned from MF Global's board on Monday, according to documents filed with regulators Friday. They represented the remainder of the firm's board.
The resignations took place the same day former FBI Director Louis Freeh was named as trustee to administer liquidation of the company and to try to determine where as much as $1.2 billion in customer money has gone.
Earlier Friday afternoon, the Senate Agriculture Committee became the second congressional panel to issue a subpoena to former MF Global CEO Jon Corzine to testify about the institution's failure.
The committee is seeking to compel Corzine to testify at its Dec. 13 hearing on the company's failure.
The subpoena request comes after the House Agriculture Committee voted earlier Friday to subpoena Corzine to testify at a hearing scheduled for Dec. 8.
New York-based MF Global filed for bankruptcy protection on Oct. 31 after disclosing sizable exposure to derivatives and other investments related to billions of dollars in European sovereign debt.