When I recall how MF Global´s Compliance Department was a pain in the ass about KYC documentation, signatures and other regulatory stuff and I read this here: "So far they've been very disappointed with the cooperation in the fulsomeness of records and data from MF," the source said, noting regulators have been working with the firm since late last week. "They were supposed to be able to show us their books and they're supposed to be able to tell us what's what and where their customer funds are and how they've been segregated and protected and to date we don't have the information that we should have," the individual told Reuters. I simply have to throw up! BUAH!
"Regulators Investigating MF Global" http://dealbook.nytimes.com/2011/10/31/regulators-investigating-mf-global/ What began as nearly $1 billion missing had dropped to less than $700 million by late Monday. It is unclear where the money went, and some money is expected to trickle in over the coming days as the firm sorts through the bankruptcy process, the people said. 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.
what makes it even more disturbing is that in this PDF file: http://www.mfglobal.com/File Library/corp/pdf/Our Company/Client_Asset_Protection_US.pdf (link available on MF Global homepage) they specifically mention segregation.
I have posted this story in the Wall St News section. This story is taking a new direction... Also, in case anyone missed it:- http://dealbreaker.com/2011/10/does...-cnbc-is-mf-globals-seventh-largest-creditor/
The big question is how many other firms are in a similar state, only we don't know about it because they haven't had to open up their books for a death's-door merger.