Forum Post: MF GLOBAL stold hundred of millions of dollars from US Farmers - Congress appears helpless

congress is helpless or appears so -- unable to do anything (except write a letter to the Attorney General)...

~another shining example of the United States of Crony Capitalism:

http://www.businessinsider.com/us-senators-send-attorney-general-letter-in-mf-global-case-2011-12

US Senators Are Now Urging Federal Agents To Use 'Every Legal Resource Available' In The MF Global Case

Read more: http://www.businessinsider.com/us-senators-send-attorney-general-letter-in-mf-global-case-2011-12#ixzz1hmdx6vwL

Last week, 17 U.S. senators signed off on a letter sent to U.S. Attorney General Eric Holder calling for more immediate and extensive action into the MF Global investigation, including "criminal prosecution" if illegal action is uncovered. [via BringMeTheNews.com]

The letter comes in the wake of a flurry of high-profile congressional hearings on the MF Global bankruptcy and revealing media reports into e-mails concerning client money transfers in the brokerage firm's last days.

The MF Global bankruptcy has drawn increasing scrutiny from Capitol Hill as the $1.2 billion shortfall in segregated customer account funds remains missing. Currently, regulators are looking into the legality of fund transfers from client accounts and whether they were done intentionally.

The SEC, the CFTC and the Justice Department are conducting separate investigations into the MF Global bankruptcy. The CME Group, MF Global's designated self-regulatory organization, has stopped their investigation after being asked by regulators, according to testimony CEO Terrence Duffy gave at congressional hearings last week.

The Justice Department, however, is the only entity that has the power to pursue criminal charges in its investigation, and it seems like the senators' letter is seeking such actions as a way to push for more answers in trail of the missing money.

The letter also has bipartisan support—it's signed by 10 Republican senators and 7 Democratic senators, many with agricultural-focused constituents.

Here's the full text of the letter: [PDF here via Sen. Chuck Grassley's office]

December 22, 2011

The Honorable Eric Holder Attorney General Department of Justice 950 Pennsylvania Ave. NW, Ste. 5111 Washington, DC 20530-0009

Dear Attorney General Holder:

We are writing to emphasize the importance of a comprehensive and exhaustive investigation into the actions of MF Global executives regarding the potentially illegal misappropriation of funds from the segregated accounts of its commodity customers. If the Department’s ongoing investigation uncovers illegal actions, criminal prosecution should be pursued without hesitation. In order to get to the bottom of this, we urge federal agents to use every legal resource available.

In the wake of the MF Global bankruptcy proceedings and the disclosure that hundreds of millions of client funds were completely unaccounted for, tens of thousands of farmers, grain elevators and others across the country have faced the real possibility that they would not be made whole on their accounts. This happened despite federal regulations that require collateral equal in value to the customer investments to remain in the customer segregated account at all times. If credible evidence of illegalities is found by the investigation, significant resources should be utilized to prosecute those responsible.

We understand that criminal cases involving complex financial transactions are sometimes difficult to prove beyond a reasonable doubt. However, tens of thousands of American farmers have seen their customer accounts raided by MF Global to the tune of hundreds of millions of dollars. The need for extraordinary effort should not discourage the Department of Justice from pursuing this case to the full extent of the law.

We believe that justice must be brought to this issue to send a message to Wall Street that the trust individual investors place in these firms must always be returned with lawful, conscientious, and honest management of client funds. Thank you for your consideration.

Sincerely,

Max Baucus (D-Mont.) John Thune (R-S.D.) Amy Klobuchar (D-Minn.) John Barrasso (R-Wyo.) Kent Conrad (D-N.D.) Scott Brown (R-Mass.) Sherrod Brown (D-Ohio) Roy Blunt (R-Mo.) Ben Nelson (D-Neb.) Mark Kirk (R-Ill.) Jon Tester (D-Mont.) Chuck Grassley (R-Iowa) Tim Johnson (D-S.D.) Mike Johanns (R-Neb.) Dan Coats (R-Ind.) Johnny Isakson (R-Ga.) John Hoeven (R-N.D.)

Read more: http://www.businessinsider.com/us-senators-send-attorney-general-letter-in-mf-global-case-2011-12#ixzz1hme4BMqy