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MF Global’s Missing $700 Million

MF Global, headed by former New Jersey Senator and Goldman Sachs CEO Jon Corzine, filed for bankruptcy yesterday, but reports that $700 million is missing has spooked creditors and others on Wall Street,  reports DealBook’s Azam Ahmed. Best case scenario, the “missing money” is just sloppy “internal controls,” but worst case scenario, the financially unstable MF Global diverted customer funds to back its own trades.

Either way, the news has made MF Global’s chance for survival dim, report DealBook’s Ben Protess, Michael J. De La Merced and Susanne Craig. “Customers’ funds must be kept separate from company money,” they write.

“One of the basic duties of any brokerage firm is to keep track of customer accounts on a daily basis.” For now, neither Corzine or MF Global have been accused of anything, but the firm has been suspended from trading on the London Mercantile Exchange and futures market CME Group, reports the San Francisco Chronicle.

via The Hunt for MF Global’s Missing $700 Million – Business – The Atlantic Wire.

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