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
>> 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

Kerry: US Working with Vatican Against Human Trafficking

Sunday, 20 Apr 2014 16:55 PM

The United States is working with the Vatican to fight human trafficking, Secretary of State John Kerry wrote in an op-e . . .

Ex-Justice Stevens: Founders Did Not Want Individual Right to Arms

Sunday, 20 Apr 2014 13:59 PM

Guns will likely never be banned in the United States, retired Supreme Court Justice John Paul Stevens says, even if the . . .

Cardinal Timothy Dolan: 'I Like Jeb Bush A Lot'

Sunday, 20 Apr 2014 13:48 PM

Cardinal Timothy Dolan, the Archbishop of New York, says he can't say whether he would vote for Republican Jeb Bush for  . . .

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