Senators advise against paying MF Global bonuses

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Associated Press

Posted on March 15, 2012 at 2:00 PM

Updated Thursday, Mar 15 at 2:01 PM

WASHINGTON (AP) — Senators are telling the trustee overseeing MF Global that it would be outrageous to pay bonuses to top executives of the collapsed brokerage firm that was led by Jon Corzine. They say it would be wrong to pay bonuses while about $1.6 billion of customers' money hasn't been recovered.

All the members of the Senate Agriculture Committee signed a letter sent Thursday to former FBI director Louis Freeh, who acts on behalf of MF Global creditors as trustee. The committee is one of several congressional panels investigating MF Global, which filed for bankruptcy protection Oct. 31.

The Wall Street Journal had reported last week that Freeh was planning to seek permission for paying bonuses.

Freeh has since said he hasn't decided whether to ask the bankruptcy judge to approve bonuses for the executives.

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