NY Times Reports Big Money Missing from MF Global
Oct 31, 2011
TheNew York Times is reporting this evening that federal regulators are trying to locate some $700 million from MF Global customer accounts.
The Times reports that the money from customer accounts must be kept separate from any and all company money. The Feds are trying to figure out if the customer money was used to back up company trades. If it was, that's not legal.
It remains to be seen if there was fraud involved in this activity. But I believe it's safe to say that if the Feds are involved, there may not be a quick resolution to this. And that may mean uncertaintly for anybody with money tied up in MF Global trading accounts.