Follow Up – MF Global Accounts Shortfall May Exceed $1.2 Billion
November 21, 2011 12:54 pm
What the heck? Where did the money go and how did regulators miss this. Heads need to role and the CFTC needs to make an example here. This is too serious of a situation for it to go without punishment as well as answers to how it is even possible to of occurred.
MF Global Inc. ’s shortfall in U.S. segregated customer accounts may exceed $1.2 billion, said the trustee overseeing a liquidation of the failed brokerage run by former New Jersey Governor Jon Corzine. James Giddens, the trustee, said today that distributing 60 percent of what should have been in customers’ accounts will take $1.3 billion to $1.6 billion, or almost all of the assets he has within his control. While he expects the transfer will occur in early December, he doesn’t have access to funds beyond $1.6 billion, Giddens said in a statement. A shortfall of $593 million, or 11 percent of customer funds, had been previously estimated by a person with knowledge of probes of the firm’s collapse. Giddens said today that forensic accountants and investigators are working “around the clock,” and the shortfall estimate may change.