I did not, however, generally involve myself in the mechanics of the clearing and settlement of trades, or in the movement of cash and collateral. Nor was I an expert on the complicated rules and regulations governing the various different operating businesses that comprised MF Global. I had little expertise or experience in those operational aspects of the business.Here's the full testimony: LINK If you take the time to read the full testimony, please try not to puke like I nearly did over the obvious lies and legally refined statements which are designed to obfuscate and cover-up the truth.
Now, earlier in the testimony, Corzine lays out his history of employment and experience in the securities industry. For much of his career, he was in oversight and management roles which would have required that he passed certain industry exams. One of them is the Series 24 principal's exam. Having just studied for and passed this particular exam, I know for a fact that the material covers the rules regarding "movement of cash and collateral." I spent a few hours making sure I understood exactly what the regulations prescribe. For Corzine to have been promoted into the positions he lays out in his testimony, it means he had to pass the Series 24 exam and he spent part of his time at Goldman having to deal with the issues from a practical standpoint covered by the material in the Series 24. In other words, he knows the regulations and mechanics and he's lying in his testimony.
Moreover, having worked as a trader on a big bond trading desk, as Corzine did at Goldman (he ultimately ran the Government bond trading operations at one point), I know for a fact he had to have been intimately aware of and knowledgeable about "back office" (the functions to which he refers to as "clearing and settlement") functions and mechanics. It would be impossible that he would have risen through the ranks at Goldman in the bond trading business and not have spent a good part of his of time understanding and dealing the "back office operations" of the securities trading business. Impossible.
Unfortunately for justice - but fortunately to prove my contention that he will extract himself from facing prison by exploiting the inability of Congress to ask the right questions - the people who will be grilling him, Senators and Reps, have no knowledge of how Wall Street functions and they will not take the time to figure out the right questions to ask. Nor will they make an earnest attempt to hold him accountable.
There's plenty of other statements that can likely be proved to be false. For instance he claims to have not made contact with NY Fed Chairman Bill Dudley during his time at MF Global. Those two worked together at Goldman Sachs. MF Global was admitted to the Fed as a primary dealer under Corzine. I find Corzine's statement therefore exceedingly difficult to believe. Let's see the phone and email records. But the best shot this country has seeing justice served against Corzine is having private lawsuits waged against him which will bring in expert witnesses to educate the courtroom and jury as to exactly why Corzine's testimony today is one big lie. Let's hope and pray that happens.