Middletown, May 2…The Senate Banking Committee held a hearing last week to investigate the collapse of MF Global Holdings, a major financial commodities brokerage firm.
The collapse of MF Global, also under investigation by the Securities and Exchange Commission, the FBI, federal prosecutors, and the Commodity Futures Trading Commission, resulted in the loss of $1.6 billion of investors’ funds.
In his questioning, Banking Committee member U.S. Senator Bob Menendez asked whether there were “structural problems” that led to the collapse. Terrance Duffy, the Chicago Mercantile Exchange Executive Chairman responded, “There is nothing structurally wrong.”
“MF Global was poorly capitalized, had liquidity problems, was highly leveraged; was that the harbinger of its doom?” Menendez continued during his questioning.
Menendez avoided mentioning former CEO of MF Global Jon Corzine, who may face potential legal liability in the wake of the collapse and who appointed Menendez to his current position in the United States Senate.
See no evil. Hear no evil. Menendez whiffs on asking the tough questions and the obvious role his mentor Jon Corzine played in MF Global’s collapse.
Previously, the Star Ledger’s auditor shed light on the Menendez duck: “Menendez [is] not keen to question Jon Corzine on MF Global scandal on Senate Banking committee.”
The column continued, saying Menendez doesn’t want to be “questioning the man who handed him his current job.”
Click here to watch the full webcast of the hearing…
Posted: May 2nd, 2012 | Author: admin | Filed under: 2012 U.S. Senate Race, Bob Menendez, Joe Kyrillos, Press Release | Tags: Bob Menendez, Joe Kyrillos, Press Release | Comments Off on Menendez on Corzine’s role in MF Global: See no evil. Hear no evil