Corzine denies he knew of Europe loan

Former MF Global chief Jon Corzine Thursday denied an allegation that he knew the now-bankrupt brokerage firm used customer money to lend to a European affiliate.

In his third appearance in eight days before lawmakers probing MF Global's demise, Corzine, a former Democratic senator, governor of New Jersey and one-time leader of Goldman Sachs, immediately sought to address questions raised after he had testified at a hearing on Tuesday.

"I don't know the source of the suggestion, but let me be clear," Corzine told a House Financial Services oversight subcommittee Thursday. "I did not instruct anyone to lend customer funds to MF Global or any of its affiliates, nor was I told that anyone had done so."

On Tuesday CME Group executive chairman Terrence Duffy told a Senate committee that a CME auditor participated in a phone call during which an MF Global employee indicated that Corzine knew the firm used customer money to lend $175 million to its European affiliate.

Duffy told the Senate Agriculture Committee that CME, one of MF Global's regulators, has provided the information to the Justice Department and the Commodity Futures Trading Commission.

Under questioning at the House hearing about Duffy's charge, a slightly exasperated-looking Corzine said the final days of MF Global were hectic and he could not provide a blow-by-blow account of every part of the phone call in question.

"First of all we were operating very late in the day and after many, many days," Corzine told the committee. "I'd also say I stepped in and out of that meeting on a very regular basis to consult with counsel and also to speak to the board."

He added: "I did not in any way know about the use of customer funds on any loan or transfer."