What is in this article?:
- Ag committee begins hearings on MF Global meltdown
- Exclusive right to funds
• Witnesses from the Commodity Futures Trading Commission (CFTC) and the law firm working with the bankruptcy trustee also testified before the Committee Thursday, shedding some light on the situation as investigators currently understand it.
Global chief executive Jon Corzine told Members of the House Agriculture Committee on Thursday he does not know where missing customer money from his company is, and he does not have more information about how much is missing than what anyone can read in the press.
In his first Congressional testimony on the matter, Corzine said he, too, has questions about what happened at the company and without records and documents he no longer has access to, he can’t provide much help to investigators.
Corzine appeared at the hearing under a subpoena, the first of three issued so far by Congressional committees.
In his opening statement, he accepted responsibility for trades involving European sovereign debt, saying he “strongly advocated” the strategy. He also said, however, that MF Global’s board members were “independent and sophisticated” and while he ultimately had overall responsibility for the firm, he didn't have day-to-day oversight and is not an expert on all relevant regulations.
Witnesses from the Commodity Futures Trading Commission (CFTC) and the law firm working with the bankruptcy trustee also testified before the Committee Thursday, shedding some light on the situation as investigators currently understand it.
James Kobak, lead counsel for the bankruptcy trustee, said the shortfall could be as “as much as $1.2 billion or more,” and the trustee is focused on determining how much money is missing, where it went and how to get it back. Though he said no one will know exactly how much money is owed to customers until the claims process is complete in about seven weeks, based on what is known now, those who don’t have their funds back in hand could expect to receive an estimated 69-70 percent.