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    MF Global trustee says $1.2B or more missing

    WASHINGTON (AP) — The court-appointed trustee overseeing MF Global's bankruptcy says up to $1.2 billion is missing from customer accounts, double what the firm had reported to regulators last month.

    The trustee, James Giddens, also said in a statement Monday that his plans to release about $520 million from accounts that have been frozen will mean nearly all the assets under his control will be distributed.

    Giddens has been combing through the accounts and finances of MF Global, which filed for bankruptcy protection on Oct. 31.

    Regulators are investigating whether MF Global tapped money from clients' accounts as its own financial condition worsened. That would be a violation of securities rules. The FBI is investigating whether New York-based MF Global violated any criminal laws.

    MF Global was led by former Goldman Sachs chief Jon Corzine. The firm collapsed after making a disastrous bet on European debt.

    Giddens's office said in a statement that "the apparent shortfall" was as much as $1.2 billion or more, but noted that the figure could change.

    Last week, the judge overseeing the bankruptcy proceeding approved Giddens's request that 60 percent of the funds in about 23,300 frozen cash-only accounts be returned to customers. The money could start moving to customers before Thanksgiving, a spokesman for Giddens said.

    Giddens has previously returned to customers $1.5 billion in collateral for their trading accounts with MF Global. He has a goal of eventually returning 100 percent of all funds to customers, though that could be reduced by the apparent shortfall.

    Customers use the accounts for trading derivatives. The value of derivatives is based on the value of an underlying asset, such as interest rates, oil prices or currency rates. MF Global was one of the biggest players in the derivatives market.

     
    • Joe  •  Algonquin, United States  •  6 mths ago
      Why isn't Corzine in jail yet? How many times does this guy have to prove that he's a crook and always will be one?
      • lorna444birds 6 mths ago
        At least once more than he already has.
      • Big Uncle Fester 6 mths ago
        He has friends in high places. A few million keep you free.
      • Joe 6 mths ago
        Todd w. You hit it right on the head!! That's the unfortunate part because if this had been you or I, believe me they would have locked us up and hid the key.
    • Trustfunded1  •  6 mths ago
      There's never just one cockroach.
      • Hoser 6 mths ago
        A famous Gartman saying. Haha...it is so true.
      • Ccampit 6 mths ago
        I know that is right they all come out of the wood work when the place is on fire.
    • Jacob D  •  Canoga Park, United States  •  6 mths ago
      Why is it that top management is not arrested?
      IT IS A RUBBERY OF CLIENTS MONEY.
      For each account should be saperated punishment.
      • shrillyspoon 6 mths ago
        "RUBBERY?" That's cute. And, it's SEPARATED, not saperated. But, that's cute, too.
      • Retired and Taxed 6 mths ago
        Oh hell no ! They won't arrest them these idiots will give them a big bonus and a pat on the back !
      • MsMay 6 mths ago
        and us tax payers will have to pay it back. they will get a good job buddy. if we so much as steal a candy bar, you bet will go to jail. MF
    • BeachComber  •  6 mths ago
      As a retired financial crimes investigator I can tell you this is just one more example of the total failure on the part of our Congress and its dependency on special interest money. These are perhaps the largest criminal acts every committed in history and yet because of corruption on the part of our elected officials (and similar government bodies around the world) the so-called laws and regulations governing the behavior of individuals and companies are literally non-existent. No laws, no one to prosecute, no deterrence. Convenient, isn't it? And years after the start of the financial collapse, we see no new laws to protect us from it happening again. Just worthless words and committees blathering about how outrageous it all its. Voters need to understand it's got nothing to do with party, it's all about money, as it always is.
      • J.B 6 mths ago
        You are so right. I lost faith in the US Congress long ago because no one is held responsible. No one is punished enough to be made an example and deterrent to others. Most voters are truly clueless about who wields true power in this system of government. Too many plea bargains are made too...
      • T T 6 mths ago
        Lawyers make the laws to reap it all one way or another.
      • Consider 6 mths ago
        And government bureaucrats and regulators
    • Rick  •  6 mths ago
      Don't worry, the U.S. taxpayers will just cover the loss.
    • badmuther  •  Crescent City, United States  •  6 mths ago
      Derivatives/Deregulation/SEC cronnies sit back and watch as the Criminals keep stealing from america...all legal of course with our bought and paid for corrupt government.
    • Jim R  •  Los Angeles, United States  •  6 mths ago
      Why are these guys allowed to spread their disease from one company to another. Is something going to be done to ban this guy from screwing up more institutions with his uncontrollable desire to gamble with everyone's money but his. The guys a thief!
      • d l 6 mths ago
        yes, its called prison
      • MICHAELS 6 mths ago
        get a rope
    • JustinHale2012  •  6 mths ago
      Quick blame it on the poor and get a bailout!
    • Sf Tparty  •  San Francisco, United States  •  6 mths ago
      It is time for a criminal investigation of past and current Goldman Sacks executives!
    • Jim R  •  Los Angeles, United States  •  6 mths ago
      I think that's ROBBERY.
    • Michael  •  6 mths ago
      They gambled on a big government European debt bailout and lost. Let them suffer the consequences for whatever that might be.
    • Edward  •  Naples, United States  •  6 mths ago
      how the heck do you lose 1.2 billion , it fall out of somones pocket , bigger question is ...who's pockets did it end up in..that says 1 thing ya can't trust the government when it comes to money or pretty much anything else either......
    • beau10  •  6 mths ago
      The telling information: "former GOLDMAN SACHS chief Corzine. Those crooks do get around. And there's a $$$Bomb everytime.
    • Tony  •  Los Angeles, United States  •  6 mths ago
      What a shame our country has become - no values, just greed and cheating and the rich get richer while we have to cover their stealing and cheating - new laws must be made to ensure that the guilty are caught and puniched. What a laugh that will be !!!
    • Retired and Taxed  •  Grandville, United States  •  6 mths ago
      I'm not an accountant but I would almost bet my life you can find that $1.2 billion somewhere in an off shore account in the name of the CEO and top crooks with MF Global !
    • Zombie Birdhouse  •  6 mths ago
      That's some golden parachute for Corzine.
    • Norman  •  Budapest, Hungary  •  6 mths ago
      Corzine is a perennial idiot. it is hard to fill too much sympathy for investors who who put money in a company run by a chronic failure. Send him to jail where he belongs, if nothing else , because he is too stupid to be left alone. He bet investor money on Europe??
    • A Yahoo! User  •  Springfield, United States  •  6 mths ago
      If they commingled customer accounts with their operating accounts they should be charged and ALL go to jail. You just don't do that!!!
    • Holy Crap  •  6 mths ago
      ummmm must be one those ssa trust fund iou's
    • PhilB  •  Portsmouth, United States  •  6 mths ago
      There ought to be some prosecutions and some serious jail time for those who stole that money.
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