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Nyt mf global bankruptcy

nyt mf global bankruptcy

Nov 17,  · MF Global improperly diverted customers’ cash for its own use in the days before its bankruptcy, an act that regulators believe may help explain why $ million of customer funds remains missing, people briefed on the investigation say. After MF Global declared bankruptcy on October 31, , investigators discovered that the firm used customer money to pay its own obligations. new york times. Nov 05,  · When MF Global filed for bankruptcy on Monday, it left about , accounts in limbo, with regulators struggling to recover the funds. nyt mf global bankruptcy

As for the chaos, you bet it was chaotic at the end. How could it not have been? Last month, James W. A number of transactions were recorded erroneously or not at all.

Well, fine. It is not. I understand that bringing complex financial cases in front of a jury is not easy. An MF Global spokesman declined to comment. Neither the firm nor Mr. Corzine have been accused of wrongdoing.

Kasowitz, said the company and its employees were cooperating with regulators as well as the trustee. Kasowitz said in a statement. The failure of the brokerage firm set off a wave of panic among its tens of thousands of customers.

Many of them are farmers and small-business owners, who use these markets to protect themselves from swings in the prices of crops and metals. The trustee, James W. Giddens, plans to begin dispersing the money before Thanksgiving. The missing money strikes at the very heart of the futures industry. This ensured that even if the firm were on the cusp of collapse, customers could safely access their money.

To unravel the mystery, the federal government has dispatched an assortment of regulators and criminal investigators. The Commodity Futures Trading Commission is leading the search for the missing money. Investigators believe that money was transferred from the futures business to its securities brokerage division, according to people with knowledge of the inquiry. The Securities and Exchange Commission is helping to trace where that money went.

Of interest to authorities are these two main businesses run by MF Global. For more on that, click on Shira Ovide's blog post at Deal Journal. The largest?

Lehman Brothers, by a longshot. Weil Gotshal landed that deal. Other law firms, however, are likely rolling their eyes over the filing -- as it means they won't get the money MF Global owes them for a long, long time -- if ever. Several legal heavies appear on the list of the firm's largest unsecured creditors. A representative from Wachtell did not immediately return an email seeking comment.

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