Bloomberg News

MF Global’s Serwinski Says She Thought Fund Shortfall Was Error

March 27, 2012

MF Global Holdings Ltd. (MFGLQ)’s Christine Serwinski, chief financial officer of the firm’s North American broker-dealer, said she “did not believe it was possible” that the firm could have a shortfall of funds of over $1 billion.

In testimony prepared for a House Financial Services subcommittee hearing tomorrow, Serwinski said she first learned on Oct. 27 that there was a “substantial deficit” in funds kept in segregated accounts including customer money. However, she said it wasn’t until the early morning hours of Oct. 31, the day MF Global filed for bankruptcy, that she realized the shortfall involving customer funds was real.

“I was still operating under the belief that there must have been an accounting error because such a large deficit was simply inconceivable to me,” Serwinski said in the testimony.

Serwinski said she had tendered her resignation on June 27 of last year, agreeing to stay on another nine months to see the transition through.

To contact the reporters on this story: Phil Mattingly in Washington at; Silla Brush in Washington at

To contact the editor responsible for this story: Maura Reynolds at

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