Subcommittee Continues to Investigate MF Global

Late last week, the House Financial Services Subcommittee held its second hearing on the FM Global Holdings failure. Lawmakers focused on an internal MF Global document that laid out extreme financial stress scenarios the firm could face in the near future. Just prior to the writing of the document, former Chief Executive Jon Corzine and the firm’s former chief financial officer, Henry Steenkamp, had upbeat comments about the firm’s financial stability.

CME Group Inc. launched an effort to rebuild market confidence damaged by the collapse of MF Global Holdings Ltd., creating a 100-million dollar insurance fund to protect farmers and ranchers who lost up to 1.2-billion dollars in the collapse. Those dollars have reportedly been traced to other customer accounts and banks.

CFTC Chairman Gary Gensler has ordered an extensive review of how futures brokerages are regulated after questions emerged about whether the CFTC or exchange-operator CME Group, whose self-regulatory arm served as MF Global’s front-line regulator, could have done more to prevent the firm’s collapse and safeguard customer money. is dedicated to serving the agricultural industry in the Carolinas and Virginia with the latest ag news, exclusive regional weather station readings, and key crop market information. The website is a companion of the Southern Farm Network, provider of daily agricultural radio programming to the Carolinas since 1974. presents radio programs, interviews and news relevant to crop and livestock production and research throughout the mid-Atlantic agricultural community.