III 

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 


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•SRES 407 ATS 

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 


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•SRES 407 ATS 

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 

1 Resolved, That it is the sense of the Senate that bo2 nuses should not be paid to the executives and employees 

3 who were responsible for the day-to-day management and 

4 operations of MF Global until its customers’ segregated 

5 account funds are repaid in full and investigations by Fed6 eral authorities have revealed both the cause of, and par7 ties responsible for, the loss of millions of dollars of cus8 tomer money. 

Æ 


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