MF Global Friday: Special Counsel Ahead?
House Republicans push for an independent review, tough finding work after a disaster and talk of customer inequities in payback.
Published: May 11, 2012
Last week in this MF Global summary we pointed out there was a move afoot to get a special counsel to look into the goings on at the failed business. Turns out that early talk gained momentum this week as House Republicans asked the Department of Justice to appoint an independent counsel to investigate the collapse of the firm.
Rep. Michael Grimm, R-N.Y., and 26 colleagues signed a letter to Attorney General Eric Holder requesting the appointment. In the letter, the group points out that former MF Global chair Jon Corzine has a "long tenure in both the financial services industry and as an elected official, he naturally developed many relationships with highly placed individuals in the government who are very close to the investigation."
House Republicans are pushing with 100 signing onto a petition for an independent review, tough finding work after a disaster and talk of customer inequities in payback.The concern is that Corzine's Democrat ties could be an issue, or at least create the perception of the issue of conflict of interest. The $1.6 billion bungle that is still working its way through a complicated bankruptcy proceeding has caused a wide range of concerns for lawmakers. You can learn more about the letter and who has signed it, and not signed it, by checking the full story.
Can't Get a Job at Target?
Be part of a failed major trading firm and getting a job later might be a problem? That may be a surprise for some but Huffington Post is reporting that a former mid-level MF Global employee can't even get a job as a cashier at Target, or as an assembly line worker at Chrysler.
According to the story, about one-quarter of MF Global's laid-off employees would find work of the 1,066 laid off after the October 31 bankruptcy.
Of course MF Global employees aren't the only ones to suffer in this economy. Check out the whole story for more.
Customer Inequity Alleged
Apparently there are reports surfacing that in the repayment of MF Global losses, not all customers are being treated equally. From a Wall Street Journal article on the issue to coverage elsewhere there are examples of folks who are seeing issues. Some of the trouble results from the fact that MF Global was indeed global and that handling of bankruptcy funds overseas may be causing trouble. While some domestic money has been flowing back to victims, non-US funds have not been returned.
There's about $700 million in MF Global money stuck outside the U.S., but at least one bankruptcy trustee - James Giddens - thinks the U.S. claimants should have access. Learn more about the process in the full story.
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