Push for MF Probe Advances
By AARON LUCCHETTI A Republican member of the House Financial Services Committee said 22 lawmakers have agreed to co-sign a letter asking the Justice Department to turn over its investigation of failed futures firm MF Global Holdings Ltd. MFGLQ 0.00%to an independent counsel.
Rep. Michael Grimm (R., N.Y.), started circulating the letter last week. As of Tuesday, 22 other Republicans and no Democrats have signed the letter. In an interview, Mr. Grimm said he is working to get more signatures and expects to send the letter to Attorney General Eric Holder later this week.
While it is far from clear that the effort has enough support to come under serious consideration, House members who want an independent counsel include Reps. Bill Posey (R., Fla.),. James Renacci (R., Ohio), Tim Huelskamp (R., Kan.) and Michele Bachmann (R.,Minn.), according to a statement from Mr. Grimm's office. The push also is supported by the Customer Commodities Coalition, a group representing thousands of former MF Global clients.
MF Global filed for bankruptcy protection in October. Regulators and prosecutors are investigating a shortfall in customer accounts estimated at about $1.6 billion.
Criminal and civil investigators have been looking into the case, but so far have said little about the progress of their investigation.
That has led some Republicans and customers of MF Global to question whether the investigation is being slowed by a desire to show deference to the firm's former chief executive, Jon S. Corzine. Mr. Corzine is a former New Jersey governor and U.S. senator. He has made donations to President Obama and other Democrats, while also helping raise money.
A person familiar with Mr. Corzine's fund-raising efforts for the Obama campaign said he hadn't bundled money for Mr. Obama in more than a year. Re-election contributions by Mr. Corzine were returned after the MF Global bankruptcy filing, this person added.
A draft of the letter circulated by Mr. Grimm doesn't allege that MF Global probes have been compromised by Mr. Corzine's political leanings or contacts in Washington. |
