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MF Global: Who's To Blame?

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    Rep. Randy Neugebauer, (R-Texas), on the investigation into the demise of MF Global.

  • Duration 3:53
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So a year later one point six billion dollars in MF global customer funds are still -- accounted for but now.

There is someone to blame -- house subcommittee finds former MF global CEO Jon Corzine responsible saying.

Choices made by Corzine during his tenure as chairman and CEO CEO of MF global -- I'm joined now by the chairman of the house financial services sub committee and oversight and investigations.

Representative Randy not a -- thanks so much for joining us about I want to read a couple other quotes from the report as well.

You said that his failure represents a dereliction of duty as and that -- chairman and CEO.

And those risks were exacerbated by an authority at the risk that they -- in their business plan where.

Exacerbated by an authoritarian atmosphere.

Corzine created at the firm where no one can challenge his decisions.

Do you think first off had to -- to these conclusions what did you see that was most egregious.

Well I mean after you know three hearings you know over.

Witnesses say a fifty witnesses that we interviewed and you know 43000.

Patients have documents what we begin to see was a pattern there were -- cores and caning was trying to transform this company.

Into a -- Goldman Sachs junior if you would.

And he began to you know get some push back from some of the positions that he wanted to put on -- these these foreign positions.

And so is.

His risk managers should you not think this is risky -- think for potential problems here he fired that risk manager and so he was determined that he was pointy.

-- -- -- -- -- Two you turn the company ran an increase their earnings.

And as people begin the question that decision.

You know he ignored it ended as the but chairman of the board had this company he basically kind of mitigated -- have a board a supervision -- well.

Yet it sounds like you lay the majority of the blame if not all of -- at his at his feet.

Did anything -- do rise to the levels something that was criminal.

Well I think that'll be for another department are another agency determine -- was not a criminal investigation we tried to put together a -- Knology.

-- you if you will what happened and why it happened in what was going on inside the company.

We also say that the reckless there was -- regulatory failure here and I don't want to just put it all on its foreseen but that his actions led to -- the bankruptcy of this company.

But obviously there -- some regulatory failure there we don't think that the regulators were talking to each other.

And so we makes recommendations about that.

We we think the disclosures that the company was making.

May have been misleading in many ways because a lot of people didn't realize that this company was taking these kind of risk and really until it's too late so collective -- -- Yet know the rate you're saying that the regulator was at least in part to blame has anything changed that -- to stop this from happening again.

Well one of the things that you know we want to do is really look at is if there needs to be some streamlining or some consolidation here because what we had was competing interest.

One regulator looking at one part of the business another regulator looking another piece of the business.

And they really want to talking to each other until really right there at the end.

And it -- -- and it was two like.

We mentioned that he -- his one point six billion dollars in customer funds that are still unaccounted for where do you think there are.

All we know that there's so -- is that is tied up in the UK and this is another part of the report that we talked about -- are gonna have to be some harmonization between you know the rules Cindy and United States.

And some of the country -- we have investors in this country trading.

Bubbles foreign exchanges.

There's going to be hearing I guess later on in this spring of this year.

To determine if some of that money can be recovered for the some of the people.

You know and that that didn't receive all their money back.

The trustees working diligently to do that and we'll wait to see how that actually plays out.

-- importance -- a lot of people looking for answers in this congressman thank you so much for joining us we appreciate it.

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