House panel to issue MF Global report on Thursday

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A House of Representatives panel on Thursday will release a long-awaited report that will dissect the collapse of failed commodities brokerage MF Global, the committee said on Monday.

The House Financial Services Committee said its Subcommittee on Oversight and Investigations will post the report online at 9:30 a.m. Thursday.

MF Global, which was led by former New Jersey governor and U.S. Senate Democrat Jon Corzine, filed for bankruptcy more than one year ago and left an estimated $1.6 billion in customer funds missing.

Since then, regulators, prosecutors and lawmakers have investigated the missing funds and the firm's downfall, which came as investors fled after revelations the firm made heavy bets on European sovereign debt and after ensuing credit downgrades.

A trustee liquidating the company's broker-dealer unit issued a blistering 275-page report in June that described how Corzine failed to address the company's growing liquidity needs as he tried to build the commodities broker into a global investment powerhouse.

Representative Randy Neugebauer, a Texas Republican who chairs the oversight subcommittee, has said the report will focus on the regulatory and compliance failures that led to MF Global's collapse.

His subcommittee, as well as other panels in the U.S. House and Senate, have held hearings on MF Global's collapse at which Corzine and other high-profile executives gave their account of events.

Regulators and prosecutors are still investigating the company and have called in former executives for additional interviews in the past two months.

So far, no charges have been filed against any individuals involved.

(Reporting By Aruna Viswanatha; Editing by Leslie Adler)

 



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Phil Johnson    
san diego  |  November, 13, 2012 at 02:51 PM

I am a real estate broker and if i commingled a 5k check I would be sent to jail. This needs to be prosecuted criminally by THE US ATTORNEYS OFFICE ASAP.

michael    
kansas  |  November, 14, 2012 at 10:22 AM

Funny how this, after going dark in the lead-up to Elections, is making "news" again. Fraud is Fraud, politically unconnected Peregrine head is already serving time for same type of deceit, and investor losses being recouped with the assistance of CME. Meanwhile, over a year after their crimes were exposed, Corzine and crew haven't even been indicted and continue to have their legal expenses paid by the MF Global's insurer (money that should be going to cheated investors). This is a Major Scandal of Cronyism and Cover-up in high offices of an Administration that has just been re-elected base on their claims to be a defender the "little guy" against fat-cat wall streeters, and more "transparent" regarding campaign fundraisers activities and character. The Stench of this betrayal should be making headlines, in the Ag Press at least - if not The Washington Post or New York Times.


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