Chairwoman Stabenow Asks Business, Customer and Consumer Protection Groups to Weigh in on MF Global Bankruptcy

Senator Debbie Stabenow, Chairwoman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry, today called on an array of financial stakeholders, market participants and consumer advocacy groups to provide insight and recommendations on how to create stronger, safer markets, and to provide customers with greater protections in the wake of the MF Global bankruptcy. With an estimated $1.2 billion in customer funds still missing, Chairwoman Stabenow said the Committee will begin to consider policies that could help customers recover money. The MF global collapse represents the 8th largest bankruptcy in U.S. history.

“The MF Global bankruptcy has raised questions about the regulatory framework that protects these markets,” Chairwoman Stabenow explained in a letter sent to market participants. “As investigations into the causes of the bankruptcy and missing customer funds progress, the Committee will begin to  consider policies that could help customers recover money, protect customer collateral, and prevent situations like the MF Global bankruptcy from happening.”

Below is the full letter Chairwoman Stabenow sent to financial stakeholders, market participants and consumer advocacy groups.

 

January 18, 2012

 

The United States Senate Committee on Agriculture, Nutrition and Forestry is responsible for overseeing the proper functioning of the futures markets.  The MF Global bankruptcy has raised questions about the regulatory framework that protects these markets.  As investigations into the causes of the bankruptcy and missing customer funds progress, the Committee will begin to  consider policies that could help customers recover money, protect customer collateral, and prevent situations like the MF Global bankruptcy from happening.  

 

As an important participant in derivatives markets, I am asking for your cooperation and assistant in the coming weeks and months.  In particular, I would appreciate your evaluation of current policies and any recommendations you would like to make to this Committee on changes that would create stronger, safer markets and provide customers with greater protections. 

 

Derivatives play an important role in the daily lives of all Americans.  From the farmers and ranchers who rely on the futures markets to protect the price of their crop, to the largest corporations hedging interest rate and currency fluctuations - ensuring the integrity of the markets is paramount.  We appreciate your input to help ensure that any policy responses are appropriate and sufficient to protect customers and maintain the integrity of these markets.

 

Thank you for your time and efforts.

 

Sincerely,

Debbie Stabenow

Chairwoman

U.S. Senate Committee on Agriculture, Nutrition, and Forestry