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Two lawmakers prodded the bankruptcy trustee in charge of unwinding MF Global Holdings Ltd. to drop his plan to pay bonuses to top executives who were at the securities firm when it collapsed.
In a letter to former Federal Bureau of Investigation Director Louis Freeh, Sen. Jon Tester (D., Mont.) said it would be "outrageous" to proceed with a proposal to a bankruptcy judge that could result in payouts of several hundred thousand dollars each for MF Global's chief operating officer, finance chief and general counsel. The size of the bonuses would depend on their job performance in helping Mr. Freeh maximize value for creditors of the company.
[mfglobal] Charles Dharapak/Associated Press
Sen. Jon Tester of Montana opposes bonuses for MF Global officers.
"Rather than reward executives in the hopes of being able to pay back creditors, I urge you to forgo executive bonuses and instead use these funds to repay the farmers and ranchers whose trust was so betrayed by MF Global," Mr. Tester wrote. "I look forward to your reconsideration of this decision."
Montana is home to farmers and ranchers who invested in the futures market through MF Global but are likely to suffer losses because of the estimated $1.6 billion shortfall in customer accounts that emerged after the New York company filed for Chapter 11 bankruptcy protection on Oct. 31.
The Wall Street Journal reported Friday that Mr. Freeh is planning to ask the bankruptcy-court judge in charge of the case to approve potential bonuses for Bradley I. Abelow, Henri J. Steenkamp and Laurie R. Ferber, according to people familiar with the situation. The payouts likely would be made in pieces throughout 2012. As many as 20 or so other MF Global employees now working for Mr. Freeh also would be eligible for possible bonuses. Details could be filed as soon as this month.
http://online.wsj.com/article/SB1000...322570700.html
In a letter to former Federal Bureau of Investigation Director Louis Freeh, Sen. Jon Tester (D., Mont.) said it would be "outrageous" to proceed with a proposal to a bankruptcy judge that could result in payouts of several hundred thousand dollars each for MF Global's chief operating officer, finance chief and general counsel. The size of the bonuses would depend on their job performance in helping Mr. Freeh maximize value for creditors of the company.
[mfglobal] Charles Dharapak/Associated Press
Sen. Jon Tester of Montana opposes bonuses for MF Global officers.
"Rather than reward executives in the hopes of being able to pay back creditors, I urge you to forgo executive bonuses and instead use these funds to repay the farmers and ranchers whose trust was so betrayed by MF Global," Mr. Tester wrote. "I look forward to your reconsideration of this decision."
Montana is home to farmers and ranchers who invested in the futures market through MF Global but are likely to suffer losses because of the estimated $1.6 billion shortfall in customer accounts that emerged after the New York company filed for Chapter 11 bankruptcy protection on Oct. 31.
The Wall Street Journal reported Friday that Mr. Freeh is planning to ask the bankruptcy-court judge in charge of the case to approve potential bonuses for Bradley I. Abelow, Henri J. Steenkamp and Laurie R. Ferber, according to people familiar with the situation. The payouts likely would be made in pieces throughout 2012. As many as 20 or so other MF Global employees now working for Mr. Freeh also would be eligible for possible bonuses. Details could be filed as soon as this month.
http://online.wsj.com/article/SB1000...322570700.html
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