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But first our top story a stunning development on Capitol Hill a congressional panel has subpoenaed Jon Corzine.
To testify next week about his role in the collapse of -- bankrupt MF global.
A member of that panel is Republican congressman Randy -- of our.
Texas and he joins us now for -- first on Fox Business interview congressman great to see is so.
Any word of from former governor former senator Corzine about whether he'll plead the fifth.
Well we don't know about that but we have subpoenaed him to come and -- -- our panel.
You know the purpose of our -- is going to be really threefold one we're gonna look at the corporate behavior that was going on during this period.
Look at the regulatory behavior that was going on but also trying to ascertain what happened to investors' money.
Have have either he or his attorneys talking about whether he will show up at all.
But we gave them a deadline and unfortunately that deadline came and went in so unfortunately I think we're headed now to -- -- subpoena for mr.
course uncommon but we heard from -- commission.
OK if he does not show despite the subpoena he is automatically in contempt of congress.
Well that's my understanding that -- it this is not just about of course -- -- mean this is.
Our broad we're going to be very broad.
Investigation we're gonna look at what's going on regular orally we're concerned about there were some early warning signs there there were ignored due to was not good communication and coordination and so we wanna look at that is well and so this is.
Exactly what happened here.
And by the way we should mention it was unanimous.
Democrats as well as Republicans decide in the -- correct.
Absolutely yes OK now you say you're you're gonna focus on more than just Jon Corzine of course are questions about.
Whether CFTC chairman guard they -- demand was supposed to be looking out for MF global weather because he was a former colleague of mr.
At Goldman Sachs whether there was some conflict of interest there right.
Absolutely needs to -- now recused himself in courts well we wanna find out is what if if the -- was a little light there currently so we wanna look into two that that's going to be important part of that.
One of the things that concerns me and I think in terms a lot of people is is that this is a continuing pattern where we've seen agencies have had early warning signs that were ignored for one reason or the other.
And we waited till the freight train hit the station before we did in thing about it and so.
Certainly we want to look into what what these agencies -- But where they communicating with -- each other if they weren't communicating with each other why weren't they because obviously that's -- -- major market disruption.
The wall street journal of some other publication talked about how unlike other investment organizations MF global gave extraordinary power.
Corzine to make the deals without to sort of checks and cross checks.
That really does -- you say you don't want to just focus on him.
But if you're focusing on MF global in how -- so much and how went out you've got to be focusing on him now.
Absolutely and that's part of looking -- that corporate America behavior that was going on during that time I did what kinds of safe -- -- put in place within the corporation.
Where those safeguards being ignored by management I think the one of the things we look at this is a very serious issue and we have to look at it very comprehensively.
Now Dodds frank correct if I'm wrong but this is supposed to -- -- -- all that stuff right fact.
Corzine himself when he was governor was railing about all these leveraged up deals on Wall Street now new legislation was gonna prevented from happening.
Guess what irony of ironies apparently he was doing what he was pointing the finger at others for doing.
Absolutely I think this is one of the misconceptions we've had out there we use weather sarbanes Oxley or Dodd-Frank is what you supposed to and -- -- all of these issues and one of the things that you can't remedy sometimes is bad behavior.
So corporate behavior but also -- we look inside these regulators.
Where that we we see a continued pattern here where there ignoring some of the danger signs or are red flags out there is -- is unacceptable and again one of the things that we were told with we passed out frank there would be.
A tremendous amount of inner agency in in regulated.
And again I think this is we're gonna see a situation here -- that probably wasn't happening well you can't prevent bad behavior but you can take steps to prevent crony capitalists and catch and it seems like.
To the extent which which -- I was able insulate himself from regulators was a -- crony capitalism going on here -- it -- it is certainly appears that way and certainly that's another area where we need to look closely at find out you know what kind of conversations in in in interfaces were we're going on during this period and maybe even backing up time.
Before that the demise in the bankruptcy.
Congressman Randy -- of our thank you very much for coming in congressman good to see it.
Thank you -- have a good.
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