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MF Global Accounts Started to Empty 5 Days Before Bankruptcy: Trustee

Monday, February 06, 2012

Jon Corzine, former CEO of MF Global, testifies before the House Agriculture Committee about the company's bankruptcy of MF Global on Capitol Hill in Washington on December 8, 2011. Jon Corzine, former CEO of MF Global, testifies on Capitol Hill. (Saul Loeb/AFP/Getty Images)

Money began to disappear from customer accounts on October 26, 2011, five days before MF Global filed for bankruptcy, according to James Giddens, the trustee tasked with recovering funds for former clients of the commodities and stock brokerage.

Money began to disappear from the accounts of MF Global’s customers five days before the commodities and stock brokerage filed for bankruptcy, according to the trustee tasked with recovering funds for former clients.

In a preliminary report released Monday, James Giddens, the trustee, said that after months of scouring hard drives and interviewing staff, he's traced most of the missing $1.2 billion of customer money since MF Global went belly-up last October.  

Giddens didn’t say exactly where the money went or whether it would be able to be recovered. He also described a "chaotic situation" in the firm's final days, as MF Global struggled to cope with collateral calls and an increasing number of withdrawals.

The funds now missing were supposed to be "segregated" or protected, but it appears MF Global used the cash to cover its own mounting expenses.

Former CEO and ex-New Jersey Governor Jon Corzine has said he cannot explain where the money went.

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Comments [2]

Needs Vacation from Florida

Jon Corzine should be tried by a jury of his own peers.
Jon is allowed to keep his mansions and sports cars while he loses billions of shareholders money!?

This is an outrage!

Feb. 15 2012 08:57 PM
political pop from america

why buisness and smoking pot dont match! well tell you more after this break..

Feb. 07 2012 11:48 AM

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