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Rep. Randy Neugebauer, (R-Texas), on the investigation into what happened to the missing $1.2 billion at MF Global.
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Disgraced former MF global CEO Jon Corzine testifying.
To his third congressional committee about his firm's collapse.
And a one point two billion dollars missing from customer accounts.
He still doesn't know what happened to the money -- -- sharing to point fingers at underlings joining me now Republican congress.
My name is about our chair of the financial oversight committee demanding answers from Corzine today welcome back to the show congressman great to see you.
Are you any closer to having any answers for those farmers those small business operators who wish they knew where that one point two billion -- For -- Gerri thanks for having me on -- program unfortunately we're not tell you mr.
Corzine minute today testifying net debt.
He doesn't know where the money is he doesn't believe that he indeed his actions you know cause -- segregated funds to be transferred over to the broker -- side of that.
Of their business.
-- do you believe that and.
-- we're gonna have to have some people come on the record and we've been -- -- a lot of testimony and unfortunately we don't have all of that testimony back but.
One of the things we're gonna have to have is a forensics on exactly what happened those last few days and who gave the orders to transfer those money but we do know that the money is missing.
But what we don't know is -- who gave the order mr.
Corzine continued to say I don't think I'll let anybody to believe that we should do that.
But we still don't know the -- -- 175 million dollar loan.
The money came from customer accounts.
This is something that Terry Duffy the CME share brought up just and at another congressional hearing.
And very interestingly Corzine today said he was told that was legal or that kind of loan was legal.
By people inside the company itself it does that make you say well okay well and again nothing to see here we're gonna move on.
No it doesn't because also that we think -- 700 -- million dollar transfer.
Which -- he says he wasn't -- necessarily didn't think he was aware of that so.
We're you know the the loan obviously we need to do the -- -- that and see if that was a legal loan.
But the bottom line is is still over one point two million dollars is missing from our customers' accounts if you talk -- the that the output gap in -- -- So it it's hard hearted even believe that that they can't account for that much money and so you know like you said the farmers and ranchers and headed yet when they transferred their accounts.
-- and they had to put up additional margin because some of their -- your lifestyle and it's ridiculous actually we know.
One interesting thing here and I'm wondering if you're -- -- pursue this.
MF global with political primary dealer that means they're allowed to sell treasury securities on behalf of the government it's elevated status it means -- made it.
And give preferential treatment.
Now they just got the status earlier this year do you think Corzine got president preferential treatment.
Because of this close ties to people in the White House is a long stature is somebody who ran Goldman Sachs than is governor is New Jersey.
Gary Gensler.
Who -- -- CFTC a big regulator of us are used to work for him.
We'll jury that is certainly one of the questions that I've been pursuing because and that's a pretty elite status only twenty entities have that status and it's like the good housekeeping.
Seal of approval.
And so one would questions that we have is who you know this is company did have record of there's some violations.
With the regulators this is felt that it hasn't made money in a number of quarters and all of the sudden mr.
Corzine comes on board and they get this news status which is would fairly prestigious status and so I'm very concerned about what kind of activities led up to this organization.
Getting that designation are you worried about preferential treatment.
Well certainly that's something we have to look into this is mr.
Corzine -- the board minutes of one of the yeah.
Records that we found that -- -- complimented him and said that the stature of the firm have been raised by the fact right -- and was on board and even point out the fact that he was able to get this this special status status at the if the Fed so obviously they thought it was a big deal -- -- the organization.
And they were very proud of the status that they felt like that he had brought to the -- What's -- -- -- the -- next I mean.
We've had a series of hearings now.
They -- up really precious little in the way of evidence frankly I mean mostly Jon Corzine is said hey it wasn't me boys I didn't do this I have no idea what's going on despite the fact that I was running the company.
Our our unit.
I gonna try -- -- cross I mean what happens it is this activity has been allowed to continue with so frankly frustrating for me to watch this.
Well these first running for for both of us that are in the middle of it but what we've been working on it really since the November.
Is gathering a lot of matters we have a lot of requests for -- after unfortunately we've got several agencies working on the forensics of this.
So as we Begin to get more more this information -- -- not be the last hearing will have on this issue and warning likely will we get through with all of the information we're gonna bring -- we're gonna.
You're going to publish our findings so that we we have a clear record of what happened.
What reason that's important jury is that we need to find out what happened here so that we make sure that we.
I have the appropriate -- some place to keep it from happening again he'll be those that -- wanna have more regulation.
One of those concerns that I have -- we may have had some regulators that weren't doing their job.
Right right it as -- I'm sure you know Jon Corzine was served with papers today as he left the hearing.
Suit.
Is it possible that you won't have access to Corzine down the road at some point I think the lawyers are gonna get a whole -- and force him just.
Out talking.
Well that's -- that's a possibility but now we have -- on the record on a lot of these issues and now we're gonna go back and look at some of his record.
Conflicts with the testimony of some of the people in the organization has some of the customers and other parties that he was doing -- who is visiting businessmen including the regulators.
All right well it will want to hear from you again congressman did about our come back.
Love to have you answer.
