Senators Advise Against Paying MF Global Bonuses
WASHINGTON (AP) â¿¿ Senators are telling the trustee overseeing MF Global that it would be outrageous to pay bonuses to top executives of the collapsed brokerage firm that was led by former New Jersey Gov. Jon Corzine. They say it would be wrong to pay bonuses while about $1.6 billion of customers' money hasn't been recovered.
All the members of the Senate Agriculture Committee signed a letter sent Thursday to former FBI director Louis Freeh, who acts on behalf of MF Global creditors as trustee. The committee is one of several congressional panels investigating MF Global, which filed for bankruptcy protection Oct. 31.
"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 letter said.The Wall Street Journal had reported last week that Freeh was planning to seek permission for paying bonuses. Freeh has since said he hasn't decided whether to ask the bankruptcy judge to approve bonuses for the executives. The Journal said Freeh planned to ask U.S. Bankruptcy Judge Martin Glenn to approve bonuses for Bradley Abelow, MF Global's president and chief operating officer; Chief Financial Officer Henri Steenkamp, General Counsel Laurie Ferber and about 20 other executives, who are helping Freeh unravel the firm's finances. The Journal story cited unnamed people familiar with the situation. Freeh said in a letter Monday to Sen. Jon Tester, D-Mont., who earlier had objected to the payment of bonuses, that he hadn't yet made any recommendations to the bankruptcy court or "any decisions on the subject, notwithstanding reports to the contrary that have appeared in the media." There was no immediate response from Freeh on Thursday to the letter from the Senate Agriculture Committee, which is led by Chairwoman Debbie Stabenow, a Democratic senator from Michigan.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV