MF Global announcement

When I recall how MF Global´s Compliance Department was a pain in the ass about KYC documentation, signatures and other regulatory stuff and I read this here:

"So far they've been very disappointed with the cooperation in the fulsomeness of records and data from MF," the source said, noting regulators have been working with the firm since late last week. "They were supposed to be able to show us their books and they're supposed to be able to tell us what's what and where their customer funds are and how they've been segregated and protected and to date we don't have the information that we should have," the individual told Reuters.

I simply have to throw up!

BUAH!

 :mad:
 
"Regulators Investigating MF Global"

http://dealbook.nytimes.com/2011/10/31/regulators-investigating-mf-global/

What began as nearly $1 billion missing had dropped to less than $700 million by late Monday. It is unclear where the money went, and some money is expected to trickle in over the coming days as the firm sorts through the bankruptcy process, the people said.

But regulators are examining whether MF Global diverted some customer money to support its own trades as the firm teetered on the brink of collapse.
 
Quote from m22au:

"Regulators Investigating MF Global"

But regulators are examining whet...pages/Library/Communication/PR/2011/014.shtml (26 January 2011)

The Financial Services Authority (FSA) has fined Barclays Capital Securities Ltd (Barclays Capital) £1.12 million for failing to protect and segregate on an intra-day basis client money held in sterling money market deposits.

Under the FSA’s client money rules, firms are required to keep client money separate from the firm's money in segregated accounts with trust status. This helps to safeguard and ring-fence the client money in the event of the firm's insolvency.

For over eight years, between 1 December 2001 and 29 December 2009, Barclays Capital failed to segregate client money maturing from its sterling money market deposits on an intra-day basis. Such client monies were segregated overnight but matured into a proprietary bank account and were mixed on a daily basis with Barclays Capital’s own funds, typically for between five and seven hours within each trading day.

The average daily amount of client money which was not segregated increased from £6 million in 2002 to £387 million in 2009. The highest amount held in the account and at risk at any one time was £752 million. Had the firm become insolvent within the five to seven hours each day in which the funds were unsegregated, this client money would have been at risk of loss.
More...
 
The big question is how many other firms are in a similar state, only we don't know about it because they haven't had to open up their books for a death's-door merger.
 
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