Ilya Marritz covers business for WNYC.
Shortfall at Corzine's Former Firm Could Top $1B, Trustee Says
Monday, November 21, 2011
The amount of client money that went missing after a financial company led by former New Jersey Governor Jon Corzine filed for bankruptcy could be much greater than was initially reported.
James Giddens, the court-appointed bankruptcy trustee for MF Global, said the shortfall could be as big as $1.2 billion — double earlier estimates.
For weeks, former MF Global commodities clients have been unable to access all of the money in their trading accounts because of the apparent discrepancy. Meanwhile, investigators are searching for the missing funds.
The trustee said there's currently enough money to restore about 60 percent of the money in client accounts.
MF Global filed for bankruptcy after CEO Jon Corzine pursued a policy of borrowing heavily to purchase European government debt.