MF Global - WTF! Customer money gone missing?

Discussion in 'Wall St. News' started by benwm, Oct 31, 2011.

  1. benwm


    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.

    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. If that was the case, it could violate a fundamental tenet of Wall Street regulation: Customers’ money must be kept separate from company money.

    Such a finding would move the discussion from sloppy internal controls at MF Global to something more troubling. While the investigation is in its early days, it raises the specter that regulators could sanction the firm or the employees responsible.

    MF Global and Mr. Corzine have not been accused of any wrongdoing.
  2. Weeeeee....!
  3. death penalty.

    nothing less.


    this will repeat over and over.

    cause thats the way it is.

    old news

    corswine has lots of money.

    take it all.

    he can exit the same as that guy over in Libya, with a rifle stuck up his ass
  4. So that's why I was asked to deposit triple amount of money to open an account than by another broker?

    Now it seems front-running is such a trivial thing, compared with all these horror stories inside a brokerage firm.

    Is there an honest broker? Just brokering? No tricks to steal money from retail customers?
  5. nitrene


    It should happen this way but I'm sure it won't. I'm sure his buddies Obama & Geithner will bail him out or tell the Gov't probe to fuck off.

    I'm still waiting for the prosecutions of the executives of Lehman Brothers, Bear Stearns, Merril Lynch, BAC, GS, JPM, Countrywide, etc.

    I still remember the CFO of Lehman coming on Squawk Box on CNBC 3 days before it imploded and claiming that the short sellers (mainly Ackman) were delusional and should be prosecuted for slander for telling lies [aka the truth]. Then she went on to say that there was nothing wrong with their short-term financing. And then it went bankrupt. I guess telling lies to the media is not a contravention of the Sarbanes-Oxley Act. When will the crooks of 2008 get prosecuted for SarbOx?

    We need to bring back the Guillotine for these scumbags.

    I mean really how does a stock fall 85% in 4 months? It has to be fraud.
  6. wow....unreal :)

    *grabs popcorn*

    Better than a movie.
  7. achilles28


  8. nitrene


    Ironically IB was mulling buying MF Global because it owned the assets of Refco.

    Amazingly the deal fell through because MF Global couldn't account for the missing $900 million.

    Meanwhile, MF Global CEO Jon Corzine reportedly had a handshake deal Sunday evening for Interactive Brokers to buy the company.

    But as the potential acquirer sifted through MF’s books, officials became concerned about the amount of customer funds held on deposit by MF Global. The difference was roughly $900 million at one point, although the amount remained fluid and never was resolved, according to WSJ sources.

    I guess Corzine failed in hoodwinking IB. Man he must of thought IB were a bunch of patsies.
  9. lol....
  10. Butterball


    Some people must have flashbacks of Lehman London Enhanced Margin account money gone missing.
    #10     Nov 1, 2011