Watch CBS News

Report: NYC Comptroller Liu Hires Ex-Chief Broker Of MF Global

NEW YORK (AP) -- New York City Comptroller John Liu has hired the former chief executive of MF Global Holdings Ltd. to help manage the city's pension investments.

The Wall Street Journal reports that Kevin Davis was quietly hired in September as head of commodities in the comptroller's Bureau of Asset Management.

Davis left MF Global in 2008 after the firm lost more than 90 percent of its market value.

His hiring has drawn criticism from stakeholders in the city's pension system. MF Global was sued by four public pension systems outside New York that claimed the firm misrepresented its risk-management practices to investors.

A Manhattan federal judge approved a $90 million settlement in that case last month.

The comptroller's office says Davis was the best applicant for the job.

Sound off in our comments section below…

(Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.