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Senate hearing will target MF Global

Jeff Caldwell 11/29/2011 @ 10:59am Multimedia Editor for Agriculture.com and Successful Farming magazine.

Congress is getting involved in the MF Global bankruptcy situation.

On Tuesday, Senator Chuck Grassley (R-IA) said in around 2 weeks, a Senate hearing will call leaders of the upended brokerage firm to Capitol Hill to see if there's action lawmakers can take to prevent such incidents from happening in the future.

"It's crucial for the Commodity Futures Trading Commission and other agencies to get involved and find out where the missing customer money went," Grassley said Tuesday morning. "Farmers should have confidence in the institutions where they do their commodity trading."

The Senate hearing, for which Senate Agriculture Committee chair Sen. Debbie Stabenow (D-MI) has called former MF Global CEO Jon Corzine to the Capitol, will take place Tuesday, December 13. Customers of the broker have also been called to testify at the hearing, according to a statement from Stabenow's office.

"A discovery of this magnitude demonstrates yet again the need for strong oversight and protections for consumers to prevent this sort of abuse from occurring," Stabenow said. "Anyone engaged in wrongdoing in this matter must be swiftly held accountable, to help bring justice to victims and to prevent further erosion of confidence in the financial system."

Grassley said Tuesday the call for the hearing and investigation stems from his constituents, some of whom lost money when MF Global declared bankruptcy last month.

"We have heard more from financial houses in Iowa where individuals do their business," Grassley said Tuesday. "Eventually, it's going to filter down to individual farmers."

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