Dec 14 2011
WASHINGTON –U.S. Senator John Boozman, a member of the Senate Committee on Agriculture, Nutrition and Forest questioned MF Global Executives, federal agency heads, and the Executive Chairman for the Chicago Mercantile Exchange (CME) on the bankruptcy of MF Global and missing customer funds amounting to hundreds of millions of dollars. He released this statement following the oversight hearing.
“This raiding of segregated customer funds by any futures commission merchant is unprecedented and it jeopardizes the integrity of a system that has enabled agribusiness to responsibly hedge risk for more than a century.” Boozman said. “Our farmers, ranchers and other business owners who trusted MG Global with their money deserve answers to what happened to their funds, and those customers’ segregated accounts should be made whole. While the MF Global executives that appeared before the committee offered few ‘answers’ and seemed to be less than straightforward about their involvement in the disappearance of missing funds, it is reassuring that the Commodity Futures Trading Commission, Department of Justice, and other federal agencies are moving forward with a full civil and criminal investigation with the cooperation of the CME. Should any wrongdoing be uncovered, someone has got to be held responsible.”
The Senate Agriculture Committee has jurisdiction over commodity trading and its regulatory agencies. The bankruptcy of MF Global is the 8th largest in U.S. History and it is estimated that as much as $1.2 billion in customer funds is currently missing.