Posted on 11/22/2011 11:42:01 AM PST by lbryce
MF Global's missing money mystery has taken a twist after a bankruptcy trustee said the figure is double what the firm reported to regulators.
James Giddens said up to $1.2 billion is missing from customer accounts at the broker, which filed for bankruptcy protection three weeks ago.
He said his plans to release $520million from accounts that have been frozen will mean nearly all the assets under his control will be distributed.
Court-appointed trustee Mr Giddens has been going through the accounts and finances of MF Global since it filed for bankruptcy protection.
But an investigation source told the New York Times his figure may be too high if he double-counted a $220million figure transferred between units.
Regulators are investigating whether MF Global tapped money from clients' accounts as its own financial condition worsened.
This would be a violation of Wall Street rules. The FBI is now investigating whether New York-based MF Global violated any criminal laws too.
It is believed MF Global’s original lower estimates of missing money were down to poor bookkeeping, reported the New York Times.
The firm was led by former Goldman Sachs chief and New Jersey governor Jon Corzine. It collapsed after making a disastrous bet on European debt.
Investigators are looking at whether MF Global used to the cash to cover trading losses. But nobody has been accused of doing anything wrong.
Mr Giddens's office said that ‘the apparent shortfall’ was as much as $1.2 billion or more, but noted that the figure could change.
A bankruptcy judge last week approved his request that 60 per cent of the funds in about 23,300 frozen cash-only accounts be returned to clients.
(Excerpt) Read more at nation.foxnews.com ...
The cominngling of funds made hiding the theft easier.
When’s the CEO going to prison?
Hopefully AFTER BO is out of office!
Penn St. must be very relieved.
Shades of Bernie Madoff?
“When’s the CEO going to prison?”
When does Hell freeze over? The CEO is the ex-gov of NJ, and ex-Goldman-Sucks executive and friend of Obama. He’ll skate, although he might want to make sure he’s always looking over his shoulder as some of the good people ripped off by him may decide now is a good time to good hunting, especially if he was managing any zeta/narco loot.
Imagine it turning out that nothing illegal was done.
Tiny Rule Change at Heart of MF Global Failure: William D. Cohan
http://www.businessweek.com/news/2011-11-17/tiny-rule-change-at-heart-of-mf-global-failure-william-d-cohan.html
Occupy MF Global!
You may have missed my point...
I’m hoping for a delayed prosecution and sentencing, such that he’s not eligible for a Prez pardon while Obama is in office.
Worse, at least with Madoff, the criminals kept some of the money and were able to settle. Investors will recover 40-50%. With Corzine, he committed the crime of taking other people's money then buying worthless Greek bonds.
Nope...Climate Gate 2.0 hit a few hours ago. Penn State is unlikely to be interested in further cover ups of Michael Mann's hoax.
Nobody looses track of almost 2 billion. It would be like losing track of Austrailia - everybody knows where it’s at. You can’t hide transfers that big. John meet Bernie.
Correction. The money isn’t MISSING..The investigators already know exactly when, where, and to whom it went..wire transfer records tell all. They just don’t want to make it public yet..probably because they’re hoping to get the counter-parties to return it..to avoid the negative publicity..
The article/link you posted made me sick.....
My reaction was similar. Imagine them legally risking your money for fat profits and if they lose, well, it’s your money, not theirs. And legal?! You are not being compensated for the risk being taken. You are not even aware of it. It is slimy and almost makes me want to join OWS.
Almost...
“Mr. Corzine, did you want all $1.7 billion deposited in the Democrat Campaign account?”
UPDATE 3-MF Global to convert to investment bank in 3-5 years
Check out this bit, keeping in mind this is from last February...
On Wednesday, the Federal Reserve Bank of New York named the company to a select group of investment banks and securities dealers that work directly with the U.S. government to help manage monetary policy and sell U.S. debt.
What the heck did the NY Fed know and when did it know it?!
Didn't Corzine already admit to having done this?
MF Global’s Downfall Raises Question on Fed’s Primary Dealer Pick Article
After he was pushed out of Goldman Sachs, the New York Times endorsed him for senator.
After it was revealed that he forgave a $470,000 mortgage loan he made to the head of the state's most powerful union, whom he was sleeping with, he decided to leave the Senate and run for Governor of New Jersey. The New York Times declared "his financial expertise is best suited to fix the state's looming fiscal troubles."
After four years, the state was beyond completely broke from Corzine's corrupt and incompetent leadership. Despite this, the New York Times declared "He has earned another four years to deal with the state’s budget problems and culture of corruption." and they endorsed him again.
I have no doubt that, if he is ever paroled after his conviction, the New York Times will once again explain to their braindead readership why is their candidate of choice.
It is slimy and almost makes me want to join OWS.
I find 90% of the views of OWS to be socialist/marxist drivel not much different than the 60’s radicals. However, the 10% of scorn they heap on the biggest banks and financial markets is something every conservative should agree with. Free market capitalism does not apply to the big banks that own our congress and administration.
Too bad, they don’t understand that those mostly responsible are congress, Treasury officials, and more Presidents than you would imagine. There are certain trendsetters in the crony-capitalism market comprised of the “too big to fail” crowd. The rest of the smaller firms have to follow the big boys in their crooked ways or they will go out of business.
When the inevitable crash occurs in our big banks it will make the 2008 mortgage crisis look like a mild recession. I truly believe that. The incestuous relationship these banks have forged with our government and Federal Reserve guarantee that everyone will do all they can to save the status quo. It won’t be pretty and I humbly implore you to plan accordingly.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.