Corzine, Banks Want to Close MF Global Fraud Lawsuit

Fox Business – Jon Corzine’s lawyers say allegations that he fraudulently ran MF Global Holdings Ltd make “no sense” and that a lawsuit seeking to hold him and others responsible for the futures brokerage’s
bankruptcy must be thrown out.

Corzine, former colleagues and several banks, including JPMorgan Chase & Co and Goldman Sachs Group Inc, filed papers on Friday night to dismiss investor litigation over MF Global’s collapse. The company’s Oct. 31, 2011, bankruptcy was Wall Street’s biggest meltdown since 2008.

Plaintiffs led by the Virginia Retirement System and the province of Alberta, Canada, have accused MF Global in the U.S. District Court in Manhattan of inflating its ability to manage risk, obscuring risks from a big bet on European sovereign debt and improperly accounting for deferred tax assets.