Related Posts

Share This

MF Global Money Gone

Investigators looking into the disappearance of customer funds during the implosion of MF Global last month are coming to the conclusion that the money is likely gone for good, sources with direct knowledge of the matter tell the FOX Business Network.

What they don’t know is just how much money is missing.

That is likely to change as early as Friday, when bankruptcy trustee James Giddens provides an updated tally on the missing money, one of the focal points of civil and criminal investigations into the firm’s bankruptcy and a likely topic of conversation when the first of three Congressional hearings takes place this week.

The House Agriculture Committee on Thursday is scheduled to hear testimony from several witnesses, including MF Global’s former chief executive, Jon Corzine, regarding the brokerage’s demise. It was Corzine who changed MF Global’s business model from a plain-vanilla brokerage firm of commodities to a risk-taking outfit not unlike a hedge fund that ultimately led to its sudden downfall last month.

Read: Five questions lawmakers should grill Corzine on during testimony

Amid the firm’s implosion, as much as $1.2 billion of customer money remains missing; if executives of the firm purposely co-mingled customer cash with those used to run MF Global’s operations, that could lead to criminal fraud charges.

As of Monday, staffers for the House Agriculture Committee said Corzine’s attorneys had given no indication of whether Corzine will answer questions from the committee or remain silent by exercising his Fifth Amendment right against self-incrimination. Tamara Hinton, a spokeswoman for the Agriculture Committee, refused to comment on whether Corzine’s attorneys have given any further indication to the committee about his testimony, and a spokesman for Corzine declined comment.

via EXCLUSIVE: Kiss the MF Global Money Goodbye, Sources Say | Fox Business.

Be Sociable, Share!