MF Global chief Jon Corzine donated $5,000 to President Barack Obama’s re-election campaign in April, but that money could be returned if Corzine is accused of any wrongdoing. As reported by Reuters, an official on the Obama campaign said all $500,000 raised by Corzine and donated to the president would be restored if the CEO has either civil or criminal charges brought against him.
Corzine, who was head of the now bankrupt MF Global, has been thrown under a firestorm of controversy this week regarding the securities of the company. The former Goldman Sachs executive has not yet been accused of any wrongdoing, but investigations are being launched into MF Global’s collapse and analysts this the president’s move is a wise one.
“Politicians, like business people, are risk averse,” explained Jim Kessler of the left-leaning think tank Third Way. “Until people know more of what is going on they will distance themselves from Jon Corzine.”
MF Global was thrown into bankruptcy by the ongoing European debt crisis, having made several bad trades. After announcing its bankruptcy, however, the company was immediately put under scrutiny for large sums of missing customer money that was supposed to have been kept separate from other funds.
MF Global officials testified in court this week that there were no shortfalls in its brokerage accounts, Reuters said.
