Senate Agriculture Committee Chair Debbie Stabenow says the failures of MF Global and Peregrine Financial Group has dealt a blow to customer confidence in the futures markets. Thousands of farmers, ranchers and small businesses who rely on the futures market to hedge business risk were devastated by the failures at the two financial firms. At a hearing examining the markets and the failures of the two firms Wednesday – Stabenow said urgent action is needed to recover customer funds lost and to rebuild faith in the markets. Stabenow said the droughts this year show how the seriousness of the risk farmers and ranchers face. She said they need the markets to work to manage that risk.
The Senate Ag Committee heard from a number of witnesses – including Commodity Futures Trading Commission Chairman Gary Gensler; James Giddens, the Trustee overseeing the Securities Investment Protection Act liquidation of MF Global; Ira Bodenstein, the Trustee overseeing the liquidation of Peregrine Financial Group; and Dan Roth, National Futures Association President and CEO.
Source: NAFB News Service