MF investigator has history with Corzine
Securities firm MF Global, led by former New Jersey Gov. Jon Corzine, filed for bankruptcy protection Monday after a disastrous bet on European debt spooked its investors and trading partners. (Jan. 9, 2011) Credit: AP
WASHINGTON -- The regulator overseeing the investigation of Jon Corzine's collapsed securities firm, MF Global, gave $10,000 to the New Jersey Democratic Party in 2005 as Corzine ran for governor of that state.
Gary Gensler, chairman of the Commodity Futures Trading Commission, and Corzine had worked together for 18 years at Goldman Sachs Group Inc. and later collaborated to pass a law to combat corporate fraud.
Election records show Gensler gave the money in August 2005. Corzine, a Democrat, was elected governor later that year.
Gensler's long history with Corzine poses an apparent conflict of interest that could taint the probe's findings, experts said. "The appearance of a conflict is there, there's no question," said Jay Lorsch, a professor at Harvard Business School. "It might be wise for Mr. Gensler to recuse himself from this particular investigation."
"Gensler is a highly qualified guy, but these cozy relationships tend to taint the oversight in these big blowups," said Naveen Reddy, a research analyst with the firm GMI Inc.
Gensler and Corzine representatives declined to comment on the relationship or whether Gensler should recuse himself.
'I've never seen fire sitting on the water' Three Newsday photographers talk to NewsdayTV's Macy Egeland about covering the tragic crash of TWA Flight 800 in 1996.
'I've never seen fire sitting on the water' Three Newsday photographers talk to NewsdayTV's Macy Egeland about covering the tragic crash of TWA Flight 800 in 1996.
