$600 million missing at MF Global

[PoliticAverse]

Source: CNN

NEW YORK (CNNMoney) -- A government regulator said in court Wednesday that roughly $600 million is missing from the books of bankrupt brokerage MF Global.

The firm, headed by former New Jersey governor and Goldman Sachs CEO Jon Corzine, filed for Chapter 11 protection on Monday following a panic from investors over its holdings of risky European debt.

"MF Global has discovered a shortfall of segregated accounts of around $600 million," a lawyer with the Commodity Futures Trading Commission said, adding that this is a preliminary figure that could increase.


Read more: http://money.cnn.com/2011/11/02/news/companies/mf_global_bankruptcy/

[Safetykitten]

1. No true! in.....5...4....3

[russspeakeasy]

2. Check Corzine's basement.

[Hassin Bin Sober]

13. Check his hollow leg!

[Dutchmaster]

3. A couple more candidates for Kennyboy Isle

[bluebuzzard]

4. Jon meet Bernie Bernie meet Jon (door slams)

[stockholmer]

5. try at least $1.5 billion in theft on update (Corzine, et al must go to prison for this)

http://www.zerohedge.com/news/mf-global-client-theft-estimate-doubled-15-billion

Even as we hear rumblings that the MF fire is spreading, and the associated auditor of the now infamous former Primary Dealer is about to get in serious hot water, the bankrupt company itself continues to dig itself an ever deeper grave. Because according to a just filed motion http://dm.epiq11.com/MFG/document/GetDocument.aspx?DocumentId=1442293 by the MF Global liquidating trustee, it seems that the gross criminal activity by the company may have been orders of magnitude bigger than anyone has expected.

To wit: "As a result of the apparent segregation violations and the suspension of clearing privileges, more than 150,000 customer accounts essentially were frozen on October 31, 2011, of which more than 50,000 accounts were regulated commodities customer accounts. The CME estimates that MFGI’s current segregated funds requirement is approximately $5.45 billion. Moreover, the total amount of MFGI customer segregated funds on deposit at the CME is approximately $2.5 billion, and the clearing-level segregated collateral is approximately $1.5 billion or approximately 60 percent of the MFGI customer segregated funds on deposit at the CME."

Doing some quick inverse addition and we get a (w)hole of $5.45 less $2.5 less $1.5 or $1.45 billion. In other words, the theft by MF Global was not stealing hunderds of millions form its customers: it has stolen a whopping $1.5 billion! For those confused, this is not a rogue loss of $1.5 billion, something which was enough to send UBS' Kweku to prison. This is outright theft resulting from illegally commingled accounts. Our only question is will $1.5 billion in theft be enough for the first real perp walk of an Obama-friendly Wall Street executive?

snip

[MannyGoldstein]

6. I think we'll need to look towards the future on this one

dwelling on the past would be very un-Change-like.

[IamK]

7. Jon Corzine’s driver tied to mob loanshark

http://mafiatoday.com/bonanno-family/jon-corzines-driver-tied-to-mob-loanshark/

November 2, 2011
EX-N.J. GOV. Jon Corzine’s personal chauffeur was the victim of a Mafia shakedown in the meat locker of a Brooklyn butcher shop, the Daily News has learned.

Bonanno crime soldier Michael (Mike the Butcher) Virtuoso pleaded guilty last month to extortion in connection with a loan that had a 250% interest rate.

He is referred to only as “John Doe” in the Brooklyn Federal Court indictment .

The driver got a $1,000 loan from Virtuoso and made the payments in the amounts of $50 and $100 in the rear office of the mobster’s Graham Ave. Meats & Deli in Williamsburg — and on one occasion “inside a walk-in freezer,” according to court papers.
“Although I did not threaten him, it was understood that harm could be used if he did not pay,” Virtuoso told Judge Sandra Townes.

[Psephos]

8. Looks like Corzine Madoff with the money. n/t

[waddirum]

9. These MFers went GLOBAL

n/t

[Psephos]

11. lol I concede to a higher power. n/t

[bluebuzzard]

10. It's a small club only 1% can join

http://finance.yahoo.com/news/Regulator-gave-10k-to-NJ-Dems-apf-3930599725.html?x=0&sec=topStories&pos=3&asset=&ccode=

[defendandprotect]

12. Just $600 million ... ??? Wow ... btw, Freedie Mac is looking for $6 BILLION in bail outs -- !!

[PoliticAverse]

14. Followup:: MF Global Missing Funds Said to Be Found

MF Global Holdings Inc., the bankrupt futures brokerage, has located $658.8 million in missing customer funds in a custodial account at JPMorgan Chase & Co. (JPM), according to two people with knowledge of the matter.

The account contained a total of $2.2 billion as of Oct. 31, which includes both the firm’s own money and customer funds, according to one of the people, who declined to be identified because the information is private. MF Global’s customer funds had a shortfall of $633 million, or more than 11 percent, out of a segregated fund requirement of about $5.4 billion, regulators said yesterday.

Read the rest at: http://www.bloomberg.com/news/2011-11-04/mf-s-missing-client-funds-said-to-be-located-in-jpmorgan-custodial-account.html

[PoliticAverse]

15. Further followup: JPMorgan denies it has the missing funds...

http://www.cnbc.com/id/45167221

[Roland99]

16. have they looked in Al Capone's vault?

[PoliticAverse]

17. Are you suggesting a new Geraldo special: "The Mystery of MF Global".... n/t

[hughee99]

18. I have a feeling this story would have generated more interest here

if this was Hank Paulson (or some other repuke) instead of Corzine.