What was a missing $600 million may be more like $1.2 billion.
The amount of customer money missing from the collapsed trading firm MF Global may be more than $1.2 billion — double previous estimates — the trustee dismantling the firm’s brokerage unit said on Monday.
But the surprise finding, which caught regulators off guard, may be overstated, according to a person briefed on the investigation. Some regulators say they believe that the trustee double-counted $220 million that had been transferred between units of MF Global, this person said.
Still, the much higher number highlights the disarray of MF Global’s records and raises significantly the hurdle for tens of thousands of customers seeking to get their money back. The trustee’s estimate represents a significant portion of customer funds held by MF Global.
Regulators suspect that as investors and customers fled MF Global in the last week of October, the firm used some of the customer money for its own needs — violating Wall Street rules that customers’ money be kept separate from the firm’s funds. Much of that money may never return.
Obama’s “Wall Street guy” Jon Corzine presided over this mess. And the administration by its own admission turned to Corzine when it was crafting the budget-busting porkulus.
Oh, let me see…whatever could I guess…into the pockets of corruptocrats?
A little more conspiratorial than I’m used to, but a few days ago, Lawrence Lepard at Zerohedge (http://www.zerohedge.com/news/guest-post-mf-global-was-it-hit) makes case that MF Global was designed to help rationalize QE3 by deflating commodities trades.
You have to ask yourself why Jon Corzine has not been seen doing a perp walk.
– you’re talkin’ real money.
Being a liberal means never having to say you’re sorry….
I’m sure Corzine is very busy right now moving his money and assets around so they can’t be touched by the civil suits that are coming against him.
If I were an honest objective law enforcement guy I’d be looking in the DNC accounts.
This much more complicated than what’s appearing at first glance, and the $1.2B figure was tossed in by a new filer in the bankruptcy, more than likely to up the odds of their client’s getting some cash out. It wasn’t the Trustee saying that, as I currently understand it.
Not that this wasn’t a train robbery, it’s just that all the details are still being dug up. The fact that the former back office employee’s are volunteering their time to sort this out is a very telling detail, and not a good one for Mr. Corzine.
My current view is that customer funds were “borrowed without authorization” to fund trades and the “borrowers” expected to replace them as soon as their trades paid off. The fact that the trades crashed and burned prevented the repayment. If you worked at a bank and “borrowed without authorization” a few thou to bet on a 50-1 shot at the track, and your bet crashed and burned, you would be in a sh*tload of trouble. Someone at MFG should be in a sh*tload of trouble and the fact that they ain’t yet tells me either the books are so screwed up, the investigators haven’t figured them out yet and/or the “borrower without authorization” is an important member of the political class, very probably a Democrat.
When Maddoff was uncovered with all his clever “record keeping”, wasnt he arrested by this time? Why is Corzine still walking around? HOW COULD HE NOT BE CULPABLE??? Since Dodd-frank junk was entrenched as law, this sort of thing should have been avoided had the legislation been effective. Yet “show me the money”is the rallying cry. Show me, indeed.
Where did the money go? In Corzine’s and Obama’s pocketses…that’s where it went.
Rich Vail
Pikesville, Maryland
The Vail Spot dot Blogspot dot Com