Official: MF Global Admitted Using Client Money

[Hissyspit]

Source: Associated Press

Official: MF Global admitted using client money

By Daniel Wagner
AP Business Writer / November 1, 2011

WASHINGTON—MF Global, the failed securities firm led by Jon Corzine, admitted using clients' money as its financial troubles mounted, a federal official says.

An MF Global executive admitted that to federal regulators in a phone call early Monday after regulators discovered money missing from clients' accounts, according to an official familiar with the conversation.

The official spoke on condition of anonymity because he wasn't authorized to discuss an investigation by federal regulators.

Government rules require securities firms to keep clients' money and company money in separate accounts. Violations can result in civil penalties.

Read more: http://www.boston.com/business/articles/2011/11/01/cme_group_mf_global_violated_customer_cash_rules/

[FiveGoodMen]

1. "Violations can result in civil penalties"

I wonder if they ever actually do.

[zalinda]

2. Didn't Obama just hire Jon Corzine? n/t

[Hell Hath No Fury]

4. Corzine has been fundraising for O --

And there was talk this morning he could be a replacement for Geitner. Fat chance, now.

[MadrasT]

5. They are apparently interconnected

http://www.businessinsider.com/check-out-all-the-ways-jon-corzine-is-connected-to-democrats-and-obama-2011-10">All The Ways Jon Corzine Is Connected To Democrats And Obama

http://www.nypost.com/p/news/local/bam_recruits_corzine_to_woo_back_rhuDmIaaH8fOvWAPSMTDOL">Obama Recruits Corzine

If this is true, it doesn't look good...

[Hell Hath No Fury]

3. Paging John Corzine --

You are in deep doo doo. :mad: