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Inability to account for $600 Million: Forces MF Global into bankruptcy!

MF Global, a Wall Street brokerage (MF) firm, led by former New Jersey Governor and Goldman Sachs CEO Jon Corzine is forced into bankruptcy due to its inability to account for $600 Million, thus foiling a deal with Interactive Brokers.

The FBI and other federal prosecutors, along with U.S. Securities and Exchange Commission and Commodities Futures Trading Commission are investigating how $600 Million of MF Global customer’s money could vanish into thin air.

Craig Donohue, CEO of CME Group, the operator of the nation’s largest commodity exchanges, told analysts that his firm had determined that MF Global had broken government and CME rules requiring it to keep its customer’s funds separate from the firm’s assets. He also announced that floor brokers and traders guaranteed by MF Global or its division have been barred from CME’s Trading Floors.

MF’s downfall was due in part to a bad investment to the tune of $6.3 Billion of European government debt. Unable to cover the debt, MF dipped into its client’s money, violating U.S. Securities and Exchange along with Commodities Future Trading rules.

In the coming days and weeks to come, there will be many questions as to who knew what and when did they know it?

$600 Million is an astronomical amount of money to just report as missing. This is going to be a tangled web encased by many high rollers.

With MF Global Shares Suspended, Corzine files for Chapter 11 Bankruptcy on Monday.


November 2, 2011 - Posted by | Business News | , , , , , , , , ,

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