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Rep. Randy Neugebauer, (R-Texas), on the investigation into MF Global collapse.
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-- global CEO Jon Corzine today in front of congress again denying allegations he knew his brokerage misused clients' money.
Testifying before the oversight panel of the house financial services committee.
Corzine today said members of his staff told them that bond transfers.
Made before MF global went bankrupt or.
Legal.
-- -- Statements that we were using proper funds.
Both orally and in writing to the best of my knowledge.
And joining me now the chairman of the committee leading today's hearing.
Republican congressman.
Randy -- about.
Jon Corzine saying explicitly that fund transfers as far as she knew were in all together.
A legal and appropriate.
Your thoughts.
Bombing -- -- been consistently historian but I think one of things were beginning to see now is that more more of information is being gathered and that -- we're trying to figure out when he knew some of these things.
And on what validation he was using that to make that assertion.
Because one of the things we still don't have is the money I think what we're learning -- there was a lot of transfers.
In those last days and hours and what now everybody that regulators -- that investigators are trying to sort out his.
-- how much of that money belonged to.
-- -- those segregated accounts and how much was in there cannot.
I think the point that we need to make here Lou is that this company knew they had liquidity problems in the fact that they've been we're ahead.
These resources to -- trying to make these margin calls somebody along the way had to say hey we can't be doing this we've got to identify who that person was.
The compliance officers than the than the chief financial officer the chief operating officer the CEO himself.
The -- the exchange -- relevant exchange in this case is the CMB.
The Commodity Futures Trading Commission.
Where were all these folks in those final days of this company when it was clear to.
Anyone who should have been it seems at least clear to anyone in the company's management.
RR counter party -- dealing with them.
-- that they were in real trouble.
-- those -- the other two issues that we wanted to do.
To accomplish in this hearing today one was what was going on within the corporate culture.
And secondly what was going into the regulatory -- -- I think what we're learning about the corporate culture is that internal control was very weak in this country company.
And and that today to trading risk that Chief Executive Officer.
Was taking -- also the chairman he's also one of their lower margins traders and so there was -- no firewall for investors and in this situation.
And I think that obviously led to the demise of this company.
And you know it I guess you could be inferred that -- that Jon Corzine effectively.
Offered up the Chicago operations.
Staff for your your scrutiny.
-- in all of this did you take it that way and will you follow up on.
Well -- we're we this is going to be a very broad investigation we have a lot of letters have we've been interviewing a lot of people we're going to be talking to a lot more people -- it's important here -- is to figure out what happened here.
Because what we don't want -- have is this kind of situation happen in the future.
So we need to identify where the breakdowns were once we -- where the breakdowns are we can figure out you know what the solutions are.
That you know do we have regulators that weren't doing their job was or corporate culture there -- that just.
Encouraged bad behavior wouldn't we we need to find out all of those things and and what's gonna -- one other aspect of this and that is.
The the idea that the Commodity Futures Trading Commission seems.
They have -- at least.
From.
Well from various sources within the CFTC include including that the commission.
Itself.
The commissioners themselves.
That they now know where the money win.
How much of it is do you believe they have a clear idea as to how much of that money is still intact.
For the clients whose money was co mingled.
It by MF global.
And that's the most important question I think what they've identified as they've traced these wire transfers and so I think they know where these -- transfers win.
I think what they have to now dissect -- whose money that was being transferred.
And you know -- -- are some reclaim for these farmers -- ranchers to get some of their money back where it has some of these transfers where -- legal.
And going to another funding issue us a much bigger one where -- very close deadline.
Do you think you've got to deal that's gonna stick.
On funding the government the mega -- and do you believe that the senate there is that do you have -- indication that we're gonna see a deal done there.
Bob been in this hearing all they still haven't been really following what the negotiations -- I think it's better for us to pass a build -- to go to another CR VCRs.
You know it's not the way the congress should do but he doing their business and so.
If we can -- regional agreement you know I think we should go ahead in in input.
Spending bills to -- because when we get back Lou from.
Do holidays and we gotta start this process all over again that developing a budget.
And also starting these appropriation process all over again we don't need to be still doing lectures business.
Also congressman as always thanks for being with us we appreciate -- congressman -- --
