While the exact effect on agriculture of MF Global’s collapse is yet to be determined, farmers, ranchers and agricultural businesses across the nation are waiting to see what portion of their money they will get back. MF Global was a clearinghouse that producers and their brokers used to buy positions at the boards of trade. The company recently announced their bankruptcy, the eighth largest in U.S. history, and that has signaled a whirlwind of questions. Along with the questions is a large sum of money that has completely vanished.
Malta’s Brian Eggebrecht, President of the Montana Grain Growers Association, talks about the seriousness of the situation.Brian says that they never believed for one minute that they could lose their money like that. It is estimated that as much as $1.2 billion from segregated customer accounts within MF Global has gone missing.
The House Ag Committee expects to be the first to hear from Jon Corzine, the former Chief Executive officer of MF Global. a full committee hearing this Thursday will examine the bankruptcy. They’ve put teeth in their request by issuing a subpoena to compel the attendance of Corzine. The Senate Ag Committee has set a similar hearing for Thursday, December 13.
© Northern Ag Network 2011
Haylie Shipp
