Neugebauer Statement on CFTC’s Civil Charges Against Corzine

Jun 27, 2013 Issues: Financial Services

WASHINGTON, DC—Congressman Randy Neugebauer (R-TX), Chairman of the Financial Services Subcommittee on Housing and Insurance, released the following statement after the Commodity Futures Trading Commission (CFTC) filed civil charges against former MF Global Chief Executive Officer Jon Corzine.  The CFTC concluded that “MF Global’s unlawful use of customer funds…harmed thousands of customers and violated fundamental customer protection laws on an unprecedented scale.”

“The CFTC’s conclusions track closely with my subcommittee’s findings that Jon Corzine’s decisions caused farmers, ranchers, and other customers to lose more than $1 billion.  He didn’t act in good faith as a steward of these funds, and he violated his legal obligations by failing to adequately oversee MF Global’s operations.  He should bear the responsibility for these unlawful and harmful actions.  I appreciate all the work the CFTC has put into this case.”

As Chairman of the Financial Services Subcommittee on Oversight and Investigations in the 112th Congress, Neugebauer conducted a wide-ranging investigation of MF Global’s failure.  The report, available here, found that Corzine dramatically changed MF Global’s business plan and corporate culture and failed to maintain controls to protect customer funds.  Additionally, the subcommittee concluded that under Corzine’s leadership, MF Global was not forthright about its liquidity or its exposure to European bonds.