House Republicans seek Independent Investigation of MF Global Bankruptcy
Welcome to Capital Account. A group of house republicans are calling for the department of justice to appoint an independent counsel to investigate possible criminal wrongdoing surrounding the collapse of MF Global. We'll speak to the man who's been touted the face of MF Global's customers – he's been in DC this week lobbying lawmakers to support this latest effort. James Koutoulas joins us in studio.
And from Lehman Brothers, to Bernie Madoff, to MF Global, is bankruptcy law stacked against customers trying to get their money back? And does the law enable financial institutions to commit fraud and come out unscathed. Regulators and prosecutors are reportedly investigating this 1.6 billion dollars shortfall of customer money from MF Global – money that went missing in the firm's bankruptcy. This is money that should never have been touched, and progress has been limited on this front. Very limited.
As for Jon Corzine, the former MF Global CEO, CEO of Goldman Sachs, Obama bundler, governor of New Jersey and former US Senator, he has reportedly yet to have been questioned by prosecutors. This, in and of itself, says a mouthful. So what's happening now? Will their be any resolution?
Well, a Republican member of the House Financial Services Committee, Michael Grimm, along with a group of republican lawmakers, has signed onto a letter asking the Justice Department to appoint an independent counsel to take over investigation of criminal wrongdoing surrounding the collapse of MF Global.
Here, this week, lobbying lawmakers in support of this letter is James Koutoulas, President & Co-Founder of the Commodity Customer Coalition. He is working pro bono on behalf of MF Global customers trying to get their money back. He's also CEO of the hedge fund Typhon Capital Management.