House panel to issue MF Global report on Thursday

WASHINGTON Mon Nov 12, 2012 5:51pm EST

The sign marking the MF Global Holdings Ltd. offices at 52nd Street in midtown Manhattan is seen in New York November 2, 2011. REUTERS/Shannon Stapleton

The sign marking the MF Global Holdings Ltd. offices at 52nd Street in midtown Manhattan is seen in New York November 2, 2011.

Credit: Reuters/Shannon Stapleton

WASHINGTON (Reuters) - 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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Comments (1)
Sechel wrote:
How does the House issue a report without interviewing Edith O’brien and without considering his Sarbanes Oxley compliance. The law appears quite clear with regards to Sarbanes Oxley. The only way Corzine cannot be found guilty of violations is by not considering the crimes in that context.

Nov 14, 2012 2:59pm EST  --  Report as abuse
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