MF Global - WTF! Customer money gone missing?

[achilles28]

Quote from nitrene:

Ironically IB was mulling buying MF Global because it owned the assets of Refco.

Amazingly the deal fell through because MF Global couldn't account for the missing $900 million.

Meanwhile, MF Global CEO Jon Corzine reportedly had a handshake deal Sunday evening for Interactive Brokers to buy the company.

But as the potential acquirer sifted through MF’s books, officials became concerned about the amount of customer funds held on deposit by MF Global. The difference was roughly $900 million at one point, although the amount remained fluid and never was resolved, according to WSJ sources.

I guess Corzine failed in hoodwinking IB. Man he must of thought IB were a bunch of patsies.

Good find. Obvious criminality, afoot. In cases like this, there must be at least a handful of executives (CFO, CEO) that collude. The idea that one guy cooks the books and unilaterally signs off on thousands of trades/accounts/dummy accounts/shell corporations is impossible. But apparently not for that super-genius, Madoff. Fox guarding the henhouse...

 

[southall]

Did MFG stop paying out customer withdrawal requests yesterday after going in to BK?

Or can they continue to pay out from segregated accounts. I presume there is still some money in the segregated accounts. I presume the missing 700 million didn't wipe out all the money owed to clients, they still have much more segregated .

Or will customers now have to wait for the courts to decide if they should get paid ahead of everyone else who is owed money?

 

[southbeach4me]

Quote from southall:

Did MFG stop paying out customer withdrawal requests yesterday after going in to BK?

Or can they continue to pay out from segregated accounts. I presume there is still some money in the segregated accounts. I presume the missing 700 million didn't wipe out all the money owed to clients, they still have much more segregated .

Or will customers now have to wait for the courts to decide if they should get paid ahead of everyone else who is owed money?

The money is frozen, probably for a lengthy period of time now that an investigation is under way, or until somebody buys the brokerage, or if it goes into liquidation proceedings. That really sucks, feel bad for those customers.

 

[DT-waw]

Quote from stock777:

death penalty.

nothing less.

sadly, won't happen.
society loves to support crooks and oppressors.
see bush, rumsfeld, etc.

the more you steal, the more society wants you to have.

 

[buzzy2]

That leaves Interactive Brokers as the biggest independent futures broker in town. 2nd Place RCG.

 

[atticus]

Quote from achilles28:

Good find. Obvious criminality, afoot. In cases like this, there must be at least a handful of executives (CFO, CEO) that collude. The idea that one guy cooks the books and unilaterally signs off on thousands of trades/accounts/dummy accounts/shell corporations is impossible. But apparently not for that super-genius, Madoff. Fox guarding the henhouse...

This is REFCO part deux.

 

[stanage]

Presumably this is less likely to happen with a broker that doesn't have a prop business as well.

Maybe there's a lesson here...

 

[AC3]

Quote from achilles28:

Refco

What do you expect when you assume all the slugs from Refco into a new company.

New dress on the old whore.

 

[atticus]

Quote from southall:

Did MFG stop paying out customer withdrawal requests yesterday after going in to BK?

Or can they continue to pay out from segregated accounts. I presume there is still some money in the segregated accounts. I presume the missing 700 million didn't wipe out all the money owed to clients, they still have much more segregated .

Or will customers now have to wait for the courts to decide if they should get paid ahead of everyone else who is owed money?

I know of a CTA and a retail client with MFG that sent wire-out requests by 9am yesterday morning and neither has been received.

 

[AC3]

Quote from atticus:

I know of a CTA and a retail client with MFG that sent wire-out requests by 9am yesterday morning and neither has been received.

Thanks for playing.......