What went wrong a MF Global- Exhibit 12-2 pg. 434?

Executive Compensation at Embattled MF Global EXHIBIT 12-2 Shortly after MF Global filed for bankruptcy in October 2011, Jon S. Corzine, former governor of New Jersey, resigned as chairman and chief executive. At the time of his resignation, MF Global faced federal investigations into $630 million in missing customer money. Corzine had been with the firm less than 2 years, but during that time he transformed the sleepy brokerage firm by aggressively buying up European sovereign debt, betting that the troubled countries would not default. During his short time at MF Global he was paid more than $4 million. At the time of his resignation, Corzine said he would not seek the $12.1 million in severance compensation MF Global owed him. Later, forensic accountants found that the amount of customer money that could not be accounted for was closer to $1.2 billion, which was believed to be inappropriately used to prop up the company. Investors say Corzine should face criminal charges, though his role in the lost funds is unclear. Corzine has denied wrongdoing. Federal lawsuits claiming Corzine illegally transferred funds continue. Former executives spent some $50 million in legal defense fees, and in 2017 Corzine settled with regulators for $5 million out of his own pocket. Sources: B. Protess and K. Roose, "Corzine Resigns from MF Global," New York Times (November 4, 2011); Nick Brown, "MF Global Judge Nixes Customer Group's Bid to Depose Corzine," Reuters (January 8, 2013); Joseph Checkler, "Judge Allows Corzine and Others to Tap MF Global Insurance," The Wall Street Journal (September 5, 2014); and Ben Protess, "Corzine Reaches $5 Million Settlement with Regulators in MF Global Case," The New York Times, January 5, 2017