The Commodity Futures Trading Commission (CFTC) last week filed as a potential creditor in the bankruptcy of MF Global (MFG), filing as a “general creditor…in order to preserve all possible options” to recover the taxpayer costs of its investigation into the nation’s eighth largest bankruptcy.
At the same time, Sen. Pat Roberts (R-KS) said he was pleased to hear MFG trustee James Giddens is contemplating possible legal action against former company management, saying, “When the music stopped playing, MF Global executives were caught without a chair. Apparently the firm’s contingency plan was to tap customer funds in order to avoid a doomsday collapse.”
Roberts said he is committed – after all investigations are complete – to “working with regulators and customers to strengthen the safeguards around customer accounts and make sure those responsible are held accountable.”
On the creditor filing, the CFTC said it moved on the creditor status because it needed to preserve its “restitution status,” and that its priority continues to be to work to claim funds for MFG customers. The commission stressed its claim for costs would not take precedent over customer claims. As of this week, 72% of the value of customer accounts has been received; the remainder has still not been located.