Washington, DC – U.S. Sen. Mike Johanns (R-Neb.) and members of the Senate Agriculture Committee today wrote Louis Freeh, the trustee overseeing the bankruptcy of MF Global Holdings Ltd., arguing against awarding bonuses to the company’s top executives, “who should be held accountable for the failure of their company.”
“It is difficult to understand why you would even consider paying anyone a bonus while nearly $1.6 billion in customer money is still missing,” Johanns and the committee members wrote. “And it is absolutely outrageous to propose paying bonuses to the very people who were responsible for the firm’s operational, legal, and financial management at the time customer money disappeared … the failure of leadership in this case is truly unprecedented.”
Media reports suggest Freeh planned to ask the bankruptcy judge overseeing MF Global’s case to approve bonuses for several company executives.
MF Global’s bankruptcy last year, the eighth largest in U.S. history, resulted in an estimated $1.6 billion in missing customer funds. Thousands of farmers, ranchers and small business owners are still owed tens or hundreds of thousands of dollars. Executives of the now-collapsed firm testified before the Senate Agriculture Committee in December and indicated that they didn’t know where the money went.
Click here for the full text of the letter to Freeh.