After Klobuchar Calls for Finance Watchdogs to Take Quick Action Following MF Global Failure, Agency Passes Key Rule Reform

Press Release

Today the Commodity Futures Trading Commission (CFTC) passed a key rule reform after U.S. Senator Amy Klobuchar called for quick action from the head of the agency at an Agriculture Committee hearing last Thursday about the failure of MF Global. The new rule aims to limit Wall Street firms from gambling with customer money by largely barring large financial firms from using customer money to invest in risky investments and take the profits for themselves. The rule will close loopholes that potentially led to $1.2 billion in missing customer funds from MF Global.

"This is about protecting the hard earned dollars of Americans and giving watchdogs the tools they need to do the job," said Klobuchar. "Consumers should not have to know every in and out of the regulatory system to protect their money and we need to make sure we aren't allowing Wall Street bankers to go down the street in their Ferraris while those standing up for the middle class and our businesses are following behind in a Model-T Ford."

Klobuchar supported the rule change but said more reforms may be needed to make sure Wall Street bankers aren't gambling with their customers' money. Many Minnesota farmers have still not gained full access to the funds in their accounts and face uncertainty over how much they will ultimately recover.

During last week's hearing, Klobuchar pressed CFTC Commissioner Jill Sommers, who is leading the Commission's MF Global investigation, for answers on how funds that were supposed to be kept safe in segregated accounts could now be in jeopardy and what the CFTC can do to help farmers and ranchers gain access to their funds as quickly as possible. Klobuchar also highlighted the need to restore faith in the commodity futures market and take steps to prevent this from ever happening again. Klobuchar's office has been working directly with Minnesotans who lost money due to MF Global's failure and pushing to recover the funds.

Klobuchar is a member of the Senate Agriculture Committee, which oversees agricultural commodities trading, including those traded by MF Global.

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