Crawford grills Corzine at AG Committee Hearing
WASHINGTON – Congressman Rick Crawford questioned former MF Global CEO Jon Corzine yesterday about the $1.2 billion in missing customer funds that were invested with the company. Crawford’s questions came during the House Agriculture Committee’s public hearing to examine MF Global’s bankruptcy. The hearing marked the first public comments about the circumstances surrounding the bankruptcy from Corzine.
“As the former head of the now bankrupt company that so many trusted, what would you say to that farmer who is now facing bankruptcy? … How would you advise farmers who are in this situation” questioned Crawford.
Corzine responded with, “Congressman I am not sure that I have specific advice.”
Farmers and ranchers rely on futures markets to smooth price volatility and manage the risks that are inherent to production agriculture. Businesses have confidence in futures brokerage firms because of laws that ensure customer funds used to guarantee trades must be segregated from the broker’s proprietary accounts. This separation of funds protects customers’ margin in the event that their trader defaults or files for bankruptcy. The disappearance of customer funds from MF Global has badly shaken the trust farmers, ranchers, and businesses across America place in futures trading.