The New York Times: Senate Banking Committee to Hold MF Global Hearing

April 17th, 2012

The New York Times
April 17, 2012

A former director of the Federal Bureau of Investigation who has come under fire as the bankruptcy trustee for MF Global will appear next week before a Congressional panel examining the collapse of the brokerage firm.

Louis Freeh, who has the responsibility of returning assets to creditors of the commodities brokerage firm, is expected to testify alongside regulators as well as another trustee responsible for the return of missing customer money. The two trustees, whose missions in some ways are at odds, have been facing off over the privacy of documents and the distribution of assets.

The hearing, slated for April 24 before the Senate Banking Committee, will be the sixth Congressional inquiry stemming from MF Global’s bankruptcy and the disappearance of customer money. Nearly six months later, farmers, hedge funds and other customers of MF Global are still owed an estimated $1.6 billion.

Unlike previous hearings, which focused on the wrongdoing that may have led to the firm’s collapse, the Senate Banking Committee’s hearing will focus on ways to better protect customer money and improve regulatory oversight.

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