MF Global: 1.7 Billion missing
- Thread starter benwm
- Start date
BREAKING NEWS
HOUSE PANEL CALLS JON CORZINE TO TESTIFY AT MF GLOBAL HEARING
HOUSE PANEL CALLS JON CORZINE TO TESTIFY AT MF GLOBAL HEARING
Gotta love the take at ZH:
"Corzine's permanent expatriation plans may have to be delayed as Corzine is called in to explain why he didn't leak news of MF Global's demise to Congress ahead of time so the 435 insider traders could profit on the outcome."
http://www.zerohedge.com/news/heeeeeeres-jonnie-corzine
Hope someone gives the children's storytime version of the events to Maxine Waters and other financial illiterates in CONgress.
MF Global moved customer funds to BNY Mellon - WSJ
Published: Friday, 18 Nov 2011 | 8:57 PM ET Text Size
Nov 18 (Reuters) - MF Global moved hundreds of millions of dollars in customer money from its U.S. brokerage unit to Bank of New York Mellon Corp in August, just months before filing for bankruptcy protection, The Wall Street Journal reported. The movement of money affected customers of MF Global outside the United States, including in the United Kingdom, the paper said, citing people familiar with the situation. However, there is no sign that the transfer of funds is related to the estimated $600 million shortfall in customer money at MF Global, the Journal said. The money transfer allowed MF Global to avoid setting aside more capital for the customer assets, at a time when it was being asked by regulators to add capital at its U.S. brokerage unit to cushion against possible losses from the firm's $6.3 billion bet on European sovereign debt, the Journal reported. MF Global, which was run by former Goldman Sachs & Co chief and New Jersey governor Jon Corzine, was transitioning into an investment bank and making more bets with its own money. The broker dealer filed for bankruptcy last month hurt by large investments on European debt that led credit watchers to downgrade their ratings and made it very expensive for the company to access the short-term funding on which it depended. MF Global did not immediately respond to a request for comment.
Published: Friday, 18 Nov 2011 | 8:57 PM ET Text Size
Nov 18 (Reuters) - MF Global moved hundreds of millions of dollars in customer money from its U.S. brokerage unit to Bank of New York Mellon Corp in August, just months before filing for bankruptcy protection, The Wall Street Journal reported. The movement of money affected customers of MF Global outside the United States, including in the United Kingdom, the paper said, citing people familiar with the situation. However, there is no sign that the transfer of funds is related to the estimated $600 million shortfall in customer money at MF Global, the Journal said. The money transfer allowed MF Global to avoid setting aside more capital for the customer assets, at a time when it was being asked by regulators to add capital at its U.S. brokerage unit to cushion against possible losses from the firm's $6.3 billion bet on European sovereign debt, the Journal reported. MF Global, which was run by former Goldman Sachs & Co chief and New Jersey governor Jon Corzine, was transitioning into an investment bank and making more bets with its own money. The broker dealer filed for bankruptcy last month hurt by large investments on European debt that led credit watchers to downgrade their ratings and made it very expensive for the company to access the short-term funding on which it depended. MF Global did not immediately respond to a request for comment.