[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 407 Agreed to Senate (ATS)]

112th CONGRESS
  2d Session
S. RES. 407

Expressing the sense of the Senate that executives of the bankrupt firm 
 MF Global should not be rewarded with bonuses while customer money is 
                             still missing.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 27, 2012

  Ms. Stabenow (for herself and Mr. Roberts) submitted the following 
             resolution; which was considered and agreed to

_______________________________________________________________________

                               RESOLUTION


 
Expressing the sense of the Senate that executives of the bankrupt firm 
 MF Global should not be rewarded with bonuses while customer money is 
                             still missing.

Whereas on October 31, 2011, MF Global Holdings, Ltd., filed for Chapter 11 
        bankruptcy protection in the United States Bankruptcy Court for the 
        Southern District of New York after reporting that as much as 
        $900,000,000 in customer money had gone missing;
Whereas MF Global Holdings, Ltd. is the parent company of MF Global, Inc., 
        formerly a futures commission merchant and broker-dealer for thousands 
        of commodities and securities customers;
Whereas following the bankruptcy filing, Judge Louis Freeh, the court-appointed 
        trustee for the liquidation of MF Global Holdings, retained certain 
        employees of the MF Global entities at the time of the bankruptcy, 
        including the chief operating officer, the chief financial officer, the 
        general counsel, and other individuals, in order to assist the 
        liquidation process;
Whereas on March 8, 2012, the Wall Street Journal reported that Mr. Freeh may 
        ask the bankruptcy court judge to approve performance-related bonuses 
        for the chief operating officer, chief financial officer, the general 
        counsel, and the other employees;
Whereas according to the court-appointed trustee for the liquidation of MF 
        Global, Inc. under the Securities Investor Protection Act of 1970 (15 
        U.S.C. 78aaa et seq.), Mr. James Giddens, the total amount of customer 
        funds still missing could be as much as $1,600,000,000;
Whereas on March 15, 2012, all of the members of the Committee on Agriculture, 
        Nutrition, and Forestry of the Senate sent a letter to Mr. Freeh urging 
        him not to reward senior executives of the bankrupt MF Global entities 
        with performance-related bonuses while customer money is still missing;
Whereas on March 16, 2012, Mr. Freeh responded to the members of the Committee 
        on Agriculture, Nutrition, and Forestry of the Senate, stating that he 
        has not made any decisions regarding the payment of bonuses to former 
        senior executives of the firm;
Whereas the Commodity Futures Trading Commission, the court-appointed trustee 
        for the liquidation of MF Global, Inc. under the Securities Investor 
        Protection Act of 1970 (15 U.S.C. 78aaa et seq.), and other Federal 
        authorities are investigating the events leading up to the bankruptcy in 
        an effort to return customer money and prosecute any wrongdoing; and
Whereas as of the date of agreement to this resolution, none of the 
        investigators have stated public conclusions regarding the exact 
        location of the missing money or whether criminal wrongdoing was 
        involved: Now, therefore, be it
    Resolved, That it is the sense of the Senate that bonuses should 
not be paid to the executives and employees who were responsible for 
the day-to-day management and operations of MF Global until its 
customers' segregated account funds are repaid in full and 
investigations by Federal authorities have revealed both the cause of, 
and parties responsible for, the loss of millions of dollars of 
customer money.
                                 <all>