A report by the bankruptcy trustee Louis Freeh found that the "negligent conduct" of Jon Corzine and other officers of the MF Global Holdings Ltd. brokerage contributed to the firm's dramatic collapse in 2011, Reuters reported yesterday. The report by former FBI director Freeh concluded that the failure of MF Global's officers contributed to losses of as much as $2.1 billion and adds to the growing number of reports and investigations pointing to their liability. Freeh has prepared a lawsuit against former executives for breaches of fiduciary duty, but had not filed it pending the outcome of talks with a mediator appointed in a separate securities class action, according to the report. Bankruptcy Judge Martin Glenn will be asked today to approve MF Global's liquidation plan. General unsecured creditors of the holding company are expected to collect between 14.7 cents and 34 cents on each dollar they are owed, according to court documents.
