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House subcommittee to release report on failure of MF Global

Randy Neugebauer

A subcommittee of the House Financial Services Committee is preparing to release the results of a year-long investigation into the collapse of MF Global in coming weeks.

“Our investigation is essentially an autopsy of how MF Global came to its ultimate demise and what policy changes need to be made to prevent similar customer losses in the future,” Randy Neugebauer, the chairman of the Subcommittee on Oversight and Investigations, said. “We must restore confidence and integrity to the futures markets and send a strong signal to customers that their accounts are safe and secure.”

The investigation includes 50 interviews, three hearings, and a review of more than 243,000 documents obtained from the company, its former employees and U.S. regulators.

“MF Global customers deserve to know how and why their funds went missing; market participants deserve to know whether regulatory lapses have been identified and corrected; and taxpayers deserve to know that policymakers and regulators have been held accountable,” Neugebauer said.

MF Global, headed by Jon Corzine, a former Democratic governor and senator of New Jersey, collapsed on Halloween 2011. Federal authorities pressed the firm for answers regarding billions of dollars that went missing, though MF Global officials refused to answer questions or insisted they did not know, The Hill reports.

Corzine stepped down from his position at MF Global shortly after the firm went into bankruptcy, and his lawyers have since requested the dismissal of a civil fraud suit filed against him by investors.

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