A 6th Congressional hearing on the subject of MF Global with be held by the Senate Banking Sub-Committee on 4/24/12.  Unlike the previous 5 hearings, which focused on the wrongdoing that may have led to the firm’s collapse, the Senate Banking Committee’s hearing will focus on ways to better protect customer money and improve regulatory oversight. Louis Freeh, former director of the FBI who has been serving as the bankruptcy trustee for MF Global, will be testifying, as will trustee James Giddens, and others. Louis Freeh has taken some heat - rightfully so, in part, because he recommended that performance bonuses be paid to top level Global staff who have been working on the liquidation of the company since early November.  Mr. Freeh is responsible for returning assets to creditors of the commodities brokerage firm. Joining Freeh and others will be trustee James Giddens who is responsible, in part, for the return of missing customer money.  Both trustees, whose missions in some ways are at odds, have been facing off over the privacy of documents and the distribution of assets. It's been nearly 6 months since the firm shut its doors, and yet, farmers, hedge funds, and other customers are still owed an estimated $1.6 billion.

"As investigators seek to recover MF Global customer funds and hold accountable those responsible for any wrongdoing, Congress needs to focus its attention on preventing future abuses and the other critical public policy issues raised by the collapse of MF Global.  This hearing will help us identify ways to restore market confidence for farmers, ranchers and investors through improved regulatory oversight and strengthened protections for customer accounts." -- Senator Tim Johnson (Dem-SC), who chairs the committee.

First Time for Freeh. The hearing will be the first time that the public hears from Mr. Freeh, who has faced pressure over his handling of the bankruptcy process.  He initially declined to share certain documents with regulators and his fellow trustee, James Giddens.  In addition, a furor arose when it emerged that Mr. Freeh had been contemplating awarding bonuses to MF Global executives who remained at the firm, a common practice in bankruptcies. The Panel. Joining Mr. Freeh and Mr. Giddens on the panel will be several regulators, including Robert Cook, SEC Director of Trading and Markets, Richard Ketchum, head of FINRA, and Terrence Duffy, chairman of the CME Group, MF Global’s front-line regulator.  CFTC Commissioner Jill Sommers also will appear before the committee. The hearing comes weeks after a fiery partisan exhibition from a House subcommittee.  That hearing focused on the final days of MF Global with an eye toward who was at fault.  It often veered into bickering over information-sharing between members of both parties and whether the lack of criminal charges against the former chief, Jon Corzine, was the result of his strong ties to the Democratic Party. Click for the referenced story:  [Dealbook, 4/17/12].