Bloomberg News

MF Global Officials Say They Don’t Know Location of Client Funds

December 12, 2011

Dec. 12 (Bloomberg) -- Henri Steenkamp, chief financial officer of MF Global Holdings Ltd., said he doesn’t know the location of $1.2 billion in missing client funds and didn’t have direct involvement with accounts and fund transfers at the failed brokerage.

“I do not know why these funds cannot be accounted for, but based on the fact that no shortfalls had been reported to me previously, it appears that any irregularities were likely caused by events that occurred shortly before the bankruptcy filing,” Steenkamp said in testimony prepared for a Senate Agriculture Committee hearing tomorrow. Steenkamp said he learned of the shortfall on Oct. 30, the day before the firm filed for bankruptcy protection.

Bradley Abelow, president and chief operating officer at MF Global, also said he doesn’t know the location of the missing funds. “I am deeply troubled by the fact that customer funds are missing, and I can assure you that I share your interest, and the public’s interest, in finding out exactly what happened,” Abelow said in testimony prepared for the same hearing.

The U.S. Commodity Futures Trading Commission, Securities and Exchange Commission and U.S. Justice Department are investigating the missing funds.

--Editor: Maura Reynolds

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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