Posted on 11/03/2011 9:00:26 PM PDT by NormsRevenge
WASHINGTON (Reuters) - U.S. regulators are launching a broad review into the business practices of failed futures brokerage MF Global Holdings Ltd as their hunt continues for over $600 million in missing customer money.
Round-the-clock shifts for examiners have become the norm as they sort through the collapse of the firm headed by former New Jersey Governor Jon Corzine. MF Global filed for bankruptcy on Monday after risky bets on European debt scared away clients and investors.
"We will look at every aspect of how the firm conducted business," Mary Schapiro, chairman of the U.S. Securities and Exchange Commission, told Reuters regarding the agency's review. She declined to discuss any potential action that the SEC's enforcement division may take.
Investor fears over European sovereign debt risks facing other investment houses hit shares of Jefferies Group Inc hard early on Thursday until it issued a statement saying it had no meaningful net exposure.
...
Both SEC's Schapiro and Gary Gensler, chairman of the Commodity Futures Trading Commission, painted a picture on Thursday of close teamwork between regulators to get to the bottom of why the firm collapsed and track down the funds.
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So far, the long hours have failed to turn up much in terms of money -- and that may not be an accident. CME Group, .. has said that MF Global appeared to have made "transfers of customer segregated funds in a manner that may have been designed to avoid detection.
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Brokerages like MF Global are required to keep their customers' money segregated from the firms' own cash. Questions about whether this took place at MF Global has attracted the Federal Bureau of Investigation in addition to regulators.
Neither MF Global nor Chief Executive Jon Corzine, who once ran Goldman Sachs, have been accused of any wrongdoing.
(Excerpt) Read more at news.yahoo.com ...
developing 8-o
Don't be so certain. Timmy Geithner failed to file an income tax return for two consecutive years. So some piddling little securities charge doesn't disqualify Corzine from Treasury.
What’s a cabinet seat going for these days? 600 million seems steep.
Oh yeah I’m sure those regulators are really going at it hard, just like the FBI investigators at Solyndra. Got to find the dirt that will put the demonrats in prison and bury it before it gets out!
if it is, it dwarfs the Madoff scandal in actual damages.
But you'll NEVER hear that in the media.
lol.
I hope they go at it like the little boy who was promised a pony if he cleaned out the barn.
He was really going at it and whistling while he worked. When asked why, he replied “With all this stuff in here, there is bound to be a pony somewhere!”.
I know....like the boy, I wish for too much.
Inflation.
On the other hand, there are evidently billions to be had (e.g. Solyndra, et al)
I’m guessing that NOTHING will happen to Corzine....he’s a HUGE DEMOCRAT!!
Are these the same regulators who let MFG get away with this in the first place....?
Gee, didn’t MFG tell the bankruptcy court that all the client money was accounted for?
Did you forget a (/s)?
Sorry, I read your #15 before I read your #14.
We are on the same page (I think) ;)
IIRC, someone from MFG did indeed tell a judge that all the client money was accounted for. Oopsie.
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