MF Global exec: CEO sought $200M transfer

A former MF Global executive is contradicting testimony from Jon Corzine, saying the former senator ordered the transfer of $200 million last fall out of a customer account days before the firm collapsed, according to an email obtained by congressional investigators.

Edith O'Brien, the former assistant treasurer, says chief executive Corzine ordered the money shifted to one of the firm's bank accounts overseas on Oct. 28 to cover an overdraft, according to a memo that cited the email.

The email noted that the transfer was made "per JC's direct instructions."

MF Global filed for bankruptcy protection on Oct. 31. The firm failed because of a disastrous bet on European debt. About $1.6 billion of customers' money hasn't been recovered.

A House Financial Services subcommittee released the memo Friday in advance of a hearing Wednesday.

O'Brien, who has been subpoenaed to testify, could not be reached to comment. A representative for Corzine, a former New Jersey governor who led MF Global until early November, didn't immediately return a telephone call seeking comment.

Client money is required by law to be held separately from a brokerage firm's cash to protect investors in case a firm fails.-- AP