Senator Pat Roberts (R-Kan.) continues to question Commodity Futures Trading Commission (CFTC) Chairman Gary Gensler’s “non-participation” in the MF Global investigation.
Roberts expressed frustration in the manner that Chairman Gensler has removed himself from the MF Global investigation. He questioned Gensler during a Dec. 1 hearing of the Senate Agricutlure Committee regarding the timing of his decision to remove himself. Roberts sent Gensler a letter today asking for further clarification.
TEXT OF THE LETTER
Dear Chairman Gensler:
I write to request further clarification regarding your participation, or your lack of participation, as Chairman of the Commodity Futures Trading Commission, in matters related to MF Global, Inc. and MF Global Holdings Ltd. I remain frustrated in your inability to fully explain the reasoning for your statement of non-participation and your inability to describe the scope of your decision.
During our hearing on December 1, you stated that you made a judgment that you did not want your participation to become “a distraction.” And yet, you obviously did not harbor these concerns during meetings and/or phone conversations with MF Global officials prior to its bankruptcy when they were trying to persuade the Commission and you with regard to Rule 1.25.
What specifically caused you to suddenly have these concerns rise to prominence a week after MF Global was forced into bankruptcy? In your November 8 letter and at the December 1 Senate Agriculture Committee hearing, you indicated that you “made a judgment” to step aside because you did not want your participation “to be in any way a distraction” to the investigation. Yet, you also indicated that it was best to step aside when it became clear that the CFTC’s probe could lead to “possible civil and criminal actions.” Please clarify what you meant by this statement.
Mr. Chairman, I find it amazing that during the hearing you refused to say the name “Jon Corzine” and yet we both know that the reason for your recusal is your past relationship with former MF Global CEO Jon Corzine. Is this correct?