Former New Jersey Governor Jon Corzine has begun testifying in the $3 billion trial between the brokerage he once ran, MF Global, and its accounting firm, PricewaterhouseCoopers.
The legal remnants of the brokerage are suing the accounting firm, claiming that its negligence and malpractice led to the collapse of MF Global.
Corzine testified that the $6.3 billion worth of European bonds that MF Global had purchased were thought to be relatively low risk, and the firm expected to get its money back. The thesis later proved to be correct, as all the bonds that MF Global purchased were paid back in full.
Corzine’s testimony is expected to last through the end of the day. Since MF Global’s bankruptcy in 2011, Corzine has kept a low profile.