Regulators Investigating MF Global (Hundreds of millions of customer money missing)

[seafan]

Source: NY Times

Federal regulators have discovered that hundreds of millions of dollars in customer money have gone missing from MF Global in recent days, prompting an investigation into the company’s operations as it filed for bankruptcy on Monday, according to several people briefed on the matter.

The revelation of the missing money scuttled an 11th hour deal for MF Global to sell a major part of itself to a rival brokerage firm. MF Global, the powerhouse commodities brokerage run by Jon S. Corzine, had staked its survival on completing the deal.

Now, the investigation threatens to tarnish the reputation of Mr. Corzine, the former New Jersey Governor and Goldman Sachs chief who oversaw MF Global’s demise, making it the first American victim of Europe’s debt crisis.

.....

But regulators are examining whether MF Global diverted some customer money to support its own trades as the firm teetered on the brink of collapse. If that was the case, it could violate a fundamental tenet of Wall Street regulation: Customers’ money must be kept separate from company money.



Read more: http://dealbook.nytimes.com/2011/10/31/regulators-investigating-mf-global/

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How many more stories like these before we see justice?


Yet another reason people are in the streets nationwide.

[PoliticAverse]

1. WSJ: How Jon Corzine's Trades Imperiled MF Global

http://blogs.wsj.com/deals/2011/10/30/how-jon-corzines-trades-imperiled-mf-global/

[snagglepuss]

2. Do regular joe blows have money invested in these types of enterprises

or are the investors part of the 1%?

[PoliticAverse]

4. It's possible that a "joe blow's" pension fund might have some money with them. n/t

[SixthSense]

10. correction

might have had money with them

what the future holds is anybody's guess, they were levered up to all hell and comingled investor funds...

[snagglepuss]

3. dup. self delete

[dixiegrrrrl]

5. Meanwhile, the news says nothing about The Fed or FOMAC

who should have been on top of this company, esp. since MF is a primary dealer of Treasuries.

[nineteen50]

6. Oh come if they were just allowed to

regulate themselves all would be good!

[DeSwiss]

7. ''How many more stories like these before we see justice?''

- K&R

[lib2DaBone]

8. They pulled any cash out before the collapse... Imagine that?

How much of that cash will show up in campaign finance?

Well, I can bet it will be a significant amount....

[Hotler]

9. And hits keep on coming. eom.

[newspeak]

11. "same as it ever was"

which reminds me, didn't little boot's sell stocks of his own company when it was going down and was warned by the SEC that he could get in trouble for insider trading? Of course, the head of the SEC was poppy's "friend." I wonder how many people were "screwed" by little boot's company?