Oct 31 Hundreds of millions of dollars in customer
money went missing from MF Global in recent days, according to
federal regulators investigating the futures brokerage that filed
for bankruptcy, the New York Times reported on Monday.
The newspaper's DealBook report cited several people
briefed on the matter but did not identify them. The report
said that what began as nearly $1 billion missing had dropped
to less than $700 million by late Monday.
The New York Times said its sources believed that some
money was expected to trickle in as the firm goes through the
Former Goldman Sachs chief Jon Corzine's bid to
revive his Wall Street career crashed and burned when his MF
Global Holdings Ltd filed for bankruptcy protection
following bad bets on euro zone debt.
Regulators are examining whether MF Global diverted some
customer money to support its own trades as the firm teetered
on the brink of collapse, the New York Times said.
In a statement on Monday night, the U.S. Securities and
Exchange Commission and the U.S. Commodity Futures Trading
Commission said that regulators had been monitoring MF Global
in anticipation of a transaction "that would include the
transfer of customer accounts to another firm."
"Early this morning, MF Global informed the regulators that
the transaction had not been agreed to and reported possible
deficiencies in customer futures segregated accounts held at
the firm," the regulators' statement said.
A spokeswoman for MF Global could not immediately be reached