Independent counsel request to shine light on MF Global

Rep. Michael G. Grimm (R-N.Y.) will be joined by other members of Congress and former MF Global customers tomorrow at a press conference in Washington D.C. outside the Capitol Building to officially call for an independent counsel to take over the investigation of the MF Global collapse.

Grimm, last week, called on Attorney General Eric Holder to appoint an independent counsel to look at the collapse of MF Global. MF Global Holdings Ltd. declared bankruptcy on Oct. 31 when a potential sale of its futures commission merchant (FCM)/broker-dealer MF Global Inc. was scuttled because there was a shortfall in customer segregated funds.

Grimm circulated the letter calling on Holder to appoint an independent counsel last week citing former MF Global Chairman and CEO Jon Corzine’s political connections and is in the process of accumulating signatures. There are 21 members of Congress, all Republicans, that have signed the letter, several of whom will participate in tomorrow's event along with members of the Commodity Customer Coalition (CCC). 

"Given the continuing political influence of Jon Corzine, it is incumbent on Attorney General Holder to ensure that politics does not prevent justice from being done," says John Roe, co-founder of the CCC.  "The best way to do that is by authorizing an Independent Counsel to take over the investigation of MF Global.  The CCC believes that the current investigation has stalled.  The key witnesses we have spoken to have yet to even begin the proffer process by which an immunity deal could be reached."  

The letter states, “Due to Mr. Corzine’s 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 of the MF Global collapse.”

It goes on to cite Corzine’s relationship with Commodity Futures Trading Commission Chairman Gary Gensler when they both were at Goldman Sachs more than a decade ago. Gensler recused himself from the MF Global investigation  several days after it declared bankruptcy.

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