July 18, 2017

July 17, 2017

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House Financial Services Committee Releases Staff Report on MF Global

The US House of Representatives Financial Services Subcommittee on Oversight and Investigations (Committee) has released a report on the collapse of MF Global (Report). The Report finds that Jon Corzine, MF Global’s Chairman and CEO, made a number of decisions that ultimately caused MF Global’s bankruptcy. The Committee also found fault with the regulatory agencies, rating agencies and the New York Federal Reserve Board, among others. In particular, the Report faults the Commodity Futures Trading Commission and the Securities and Exchange Commission for failing to share critical information that would have provided a more complete picture of the company’s financial health. The Report also found that rating agencies, such as Moody’s and S&P, failed to sufficiently review MF Global filings or understand the nature of various aspects of MF Global’s business, thereby missing the opportunity to identify many risks that should have been identified.

The Committee’s report can be found here.

©2017 Katten Muchin Rosenman LLP


About this Author

Kevin M. Foley, Finance Lawyer, Katten Muchin law Firm

Kevin M. Foley has extensive experience in commodities law and advises a wide range of clients, both in the United States and abroad, on compliance with the Commodity Exchange Act and the rules of the Commodity Futures Trading Commission (CFTC) affecting traditional exchange-traded products, as well as the over-the-counter markets involving swaps and other derivative instruments. His clients include futures commission merchants, derivatives clearing organizations, designated contract markets, foreign boards of trade and an industry trade association.