Bloomberg News

Mf Global Said to Have Shifted Hundreds of Millions in Funds

November 17, 2011

Nov. 17 (Bloomberg) -- MF Global Holdings Ltd. moved hundreds of millions of dollars from its futures client accounts to its own securities brokerage in the days before its Oct. 31 bankruptcy, according to a person familiar with the audit of the company.

Regulators have been searching for $600 million in missing funds that were supposed to be kept in segregated futures accounts. The U.S. Commodity Futures Trading Commission, Securities and Exchange Commission and Federal Bureau of investigation have been probing cash movements at the firm. MF Global filed the eighth-largest U.S. bankruptcy after a $6.3 billion bet on the bonds of some of Europe’s most indebted nations prompted regulatory concerns and credit-rating downgrades.

To contact the reporter on this story: Silla Brush in Washington at sbrush@bloomberg.net

To contact the editor responsible for this story: Lawrence Roberts at lroberts13@bloomberg.net


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