MF Global Report Cites Management Communication in Bankruptcy

By CnAgri Print

A House Financial Services Subcommittee on Oversight and Investigations report released last week concluded that poor decisions by MF Global management, including former CEO Jon Corzine, led to the company's bankruptcy, but not that any laws were broken.

The report also cites a lack of communication between regulators that may have contributed to the loss of funds, saying that the Securities and Exchange Commission and the Commodity Futures Trading Commission 'failed to share critical information about MF Global with one another, leaving each regulator with an incomplete understanding of the company's financial health.'

They recommended that the SEC and CFTC streamline their operations or consider a merger to have complete oversight over capital markets.