Senator Tester calls for Gensler’s removal from CFTC

Jon Tester

Sen. Jon Tester (D-Mont.), who is facing a tough reelection campaign, suggested last week that Commodity Futures Trading Commission Chairman Gary Gensler should be fired for MF Global’s collapse in October.

The CFTC played a major role in regulating MF Global, which was run by former Sen. Jon Corzine. Before MF Global fired for bankruptcy, $1.6 billion in customer funds went missing. Montana ranchers and farmers are among those whose funds went missing, The Hill reports.

“[The] CFTC was asleep at the switch,” Tester said during an interview with The Billings Gazette. “They were in the building when all that stuff went on, too. Maybe Gary Gensler needs to go.”

The financial scandal could pose a problem for Tester’s re-election campaign because he voted in favor of the 2010 Dodd-Frank Act, which vastly expanded the authority of the CFTC. Gensler was even permitted to assist in writing key provisions of the financial reform legislation.

MF Global is currently under civil and criminal investigation. Several lawsuits seeking class action status, including one filed by Montana farmers, have been filed in the matter.

“From what I know about the issue, it’s pretty straight-forward,” Tester said, according to The Hill. “People need to go to jail over it.”

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