Regulators Probe MF Global Over Client Funds

Tuesday, 01 Nov 2011 07:13 AM

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
Federal regulators discovered that hundreds of millions of dollars belonging to customers has gone missing at former New Jersey governor Jon. S. Corzine's MF Global in recent days, prompting an investigation, The New York Times reports.

The missing funds were discovered during a last-minute attempt to sell part of the brokerage firm to a rival, which failed. MF Global had staked its survival on completing the deal but instead, the New York-based firm filed for bankruptcy on Monday.

Regulators are apparently looking into whether MF Global diverted some customer funds to support its own trades as the firm teetered on the brink of collapse, the Times reported.

Or it could reflect sloppy internal controls at MF Global.  When first discovered, it appeared that some $950 million was missing, but as the firm sorted through its bankruptcy, that figure fell to less than $700 million by late Monday, the Times wrote. Additional funds are expected to trickle in over the coming days.

Regardless of whether more money surfaces, the discovery of missing funds violates Wall Street regulations: Customers’ money must be kept separate from company money. One of the basic duties of any brokerage firm is to keep track of customer accounts on a daily basis.



© 2014 Newsmax. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Harry Reid Pledges to Support 'Net Neutrality' Rules

Tuesday, 29 Jul 2014 17:50 PM

Senate Majority Leader Harry Reid said in a letter he would support "any Open Internet rules" passed by U.S. regulators, . . .

Admiral: World Getting Dangerously 'Numb' to NKorean Missile Advances

Tuesday, 29 Jul 2014 17:22 PM

The admiral in charge of U.S. forces in the Pacific says North Korea may be lulling the world into largely accepting its . . .

Danny Danon: Obama Yelled at Netanyahu in Demand for Ceasefire

Tuesday, 29 Jul 2014 17:15 PM

President Barack Obama "yelled" at Benjamin Netanyahu during a tense phone conversation as he demanded that the Israeli  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved