Former MF Global CEO Jon Corzine Called to Testify before Senate CommitteeMon, 28 Nov 2011 09:13:16 CST
U.S. Senator Debbie Stabenow, Chairwoman of the Senate Agriculture, Nutrition and Forestry Committee, has called on former MF Global CEO Jon Corzine to testify before the Agriculture Committee at a hearing on December 13th. The hearing is the latest step in an ongoing investigation into circumstances surrounding the October 31 bankruptcy of MF Global Holdings Ltd., the eighth largest bankruptcy in U.S. history. The Senate Agriculture Committee has oversight jurisdiction on commodity trading and its regulatory agencies.
"The farmers, small business owners and others who trusted this firm are now facing tremendous hardship and may ultimately never recover all of their money," said Chairwoman Stabenow. "A discovery of this magnitude demonstrates yet again the need for strong oversight and protections for consumers to prevent this sort of abuse from occurring. Anyone engaged in wrongdoing in this matter must be swiftly held accountable, to help bring justice to victims and to prevent further erosion of confidence in the financial system."
Since MF Global declared bankruptcy, huge amounts of the firm's customers' money has gone missing it is now estimated that approximately $1.2 billion is unaccounted for. The FBI and Department of Justice recently opened criminal investigations into the MF Global bankruptcy.
MF Global customers consisted of many farmers, ranchers, small business owners and other middle class Americans. As a result of the bankruptcy, MF Global customer accounts had been frozen and many customers still cannot access their own money. It is possible that customers will never reclaim all of their money, meaning individual families could lose thousands, and in many cases tens of thousands of dollars.
MF Global customers are also being invited to testify at the December 13 hearing.
As part of an ongoing investigation into this matter, Senator Stabenow has also convened a hearing December 1st to question top officials at the Commodity Futures Trading Commission as well as the Securities and Exchange Commission about their oversight of MF Global and examine whether the protections in place to prevent a catastrophe of this sort are adequate.
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