MF Global makes money the new way

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Pigeon
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MF Global makes money the new way

Post by Pigeon » Fri Nov 04, 2011 3:05 am

Remember the posts about MF Global and potential missing funds...

MF Global, we make money the new way, we steal it.

NEW YORK (CNNMoney) -- The $633 million that allegedly disappeared from customers' accounts at MF Global seems to have vanished just days before the company folded, according to the operator of the nation's major commodities and futures exchanges.

CME Group (CME) said that its audit of MF Global's accounts, completed in the week before it filed for bankruptcy, showed the money was there -- one week later, it was gone.

"With respect to the apparent shortfall in customer segregated funds held by MF Global...it appears that any transfer of such funds occurred following the completion of CME audit ... and in violation of [Commodities Futures Trading Commission Regulations] and CME rules," CME said Thursday.

The CFTC, the federal regulator overseeing MF Global, says that out of the $5.4 billion that was supposed to be in MF Global's customer accounts, $633 million is missing.

The FBI and federal prosecutors are investigating the situation, according to sources close to the probe.

"It now appears that the firm made subsequent transfers of customer segregated funds in a manner that may have been designed to avoid detection insofar as MF Global did not disclose or report such transfers to the CFTC or CME until early morning on Monday, October 31, 2011," said CME.

The discrepancy in MF Global's customer accounts appears to have been the final blow, killing a tentative deal by MF Global CEO Jon Corzine to sell the firm to Interactive Brokers Group (IBKR).

MF Global (MFGLQ), which was a significant player in the commodities and futures markets, was forced into bankruptcy less than a week after it disclosed $6.3 billion in exposure to troubled sovereign debt from weak European countries.

MF Global did not immediately respond to a call seeking comment on CME's statement Thursday afternoon.

These guys must have started out selling used cars. :)

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Pigeon
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Re: MF Global makes money the new way

Post by Pigeon » Fri Nov 04, 2011 12:40 pm

NEW YORK (CNNMoney) -- Jon Corzine has resigned as chief executive officer from bankrupt MF Global Holdings and is not taking a severance package, the brokerage said Friday.

The brokerage firm did not provide a reason for the resignation. But Corzine, a former New Jersey governor and senator, and former CEO at Goldman Sachs (GS, Fortune 500), is leaving as the company tackles a growing scandal.

MF Global filed for Chapter 11 bankruptcy protection Monday, after a purchase deal with Interactive Brokers (IBKR) fell through because of accounting "deficiencies."

Corzine was technically eligible to receive a $12 million compensation package, but he was unlikely to get it, given the company's bankruptcy. He would have to get in line behind creditors owed more than $2 billion. JPMorgan Chase (JPM, Fortune 500) is the most prominent creditor, with more than $1.2 billion in bonds, followed by Deutsche Bank (DB), with about $1 billion.

"is not taking a severance package" - No need, he made his own.

Ex politician, ex GS CEO - throw in ex used care salesman or such and we have a trifecta of corruption.

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Pigeon
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Re: MF Global makes money the new way

Post by Pigeon » Mon Nov 21, 2011 11:51 pm

Auditors are stating it appears that $1.2 billion is missing.

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Egg
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Re: MF Global makes money the new way

Post by Egg » Mon Nov 21, 2011 11:55 pm

I saw that. 1.2 billion is nothing now. The level of fraud and thievery is off the hook. It's comic book storyline stuff.


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Pigeon
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Re: MF Global makes money the new way

Post by Pigeon » Tue Nov 22, 2011 1:27 am

1B is one guys cut - there must have been a commission too.

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