Corzine and regulator worked together at Goldman

November 3, 2011 - 1:50 PM

WASHINGTON (AP) — The lead regulator investigating the collapse of Jon Corzine's securities firm, MF Global, worked alongside him for 18 years at Goldman Sachs Group Inc.

Gary Gensler, chairman of the Commodity Futures Trading Commission, rose to become Goldman's co-head of finance before leaving in 1997. Corzine was chairman and CEO when Gensler left in 1999.

The two also collaborated when Corzine was a senator and Gensler worked on Capitol Hill

Harvard Business School Professor Jay Lorsch says it would be wise for Gensler to recuse himself from the investigation because of their ties.

Gensler's agency is trying to find out how hundreds of millions in clients' money went missing at MF Global.

Corzine's representatives declined to comment. Gensler's spokesman did not immediately respond to a request for comment.