The Senate Agriculture, Nutrition and Forestry Committee is set to hear testimony related to the coming reauthorization of the Commodity Futures Trading Commission (CFTC), which will include examining measures in place to protect customer funds. The question of these funds’ safety has come up primarily because of several high-profile bankruptcies, including that of MF Global, in which $1 billion belonging to farmers, ranchers and other customers was lost. CFTC filed an enforcement action against the company, former MF Global CEO Jon Corzine and former assistant treasurer Edith O’Brien late last month. The regulator is seeking full restitution of lost funds from MF Global as well as penalties up to $100 million in addition to trading bans against Corzine and O’Brien.
More from CFTC on the action is at http://www.cftc.gov/PressRoom/PressReleases/pr6626-13. More on the coming Senate hearing is at www.ag.senate.gov/hearings/2013cftcreauthorization.