ML-Implode News - Corzine Blamed for MF Global's Demise in PWC's Trial Defense

"Its bankruptcy was caused by its risky trading, its unprofitable business and other problems" James Cusick, a lawyer for PwC, told jurors in Manhattan Tuesday at the start of a $3 billion trial over who's to blame for MF Global's failure. "Mr. Corzine was the mastermind and the driver of that strategy."
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The trial is expected to focus on a strategy pushed by Corzine when he took over leadership of MF Global in early 2010. Corzine had the firm make bets on European sovereign debt, financed through a type of bond repurchase agreement called a "repurchase-to-maturity" or "RTM" transaction. By September 2011, MF Global had a $6.3 billion portfolio of the Euro RTMs.

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MF Global's first witness, former Securities and Exchange Commission Chief Accountant Lynn Turner, told jurors that PwC failed to properly account for the RTM transactions and wrongly assessed the company's ability to protect income from future taxes, resulting in a write-down of more than $100 million in the firm's final weeks.

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Corzine Blamed for MF Global's Demise in PWC's Trial Defense