Most MF Global Funds Found
The Associated Press reported Wednesday that unnamed investigators have located almost all of the 1.2-billion dollars first reported missing when securities company MF Global went under last year. The money has been tracked to other customer accounts and banks. MF Global, headed by former New Jersey Governor Jon Corzine, failed in October, 2011, after a disastrous bet on European debt.
The chief risk officer when MF Global Holdings Ltd. collapsed is expected to tell a congressional committee that he sounded concerns about the firm’s European sovereign-debt bet in July 2011. Moody’s cut the brokerage’s rating to just above ‘junk’ status on October 24, 2011. That downgrade helped push MF Global into bankruptcy.
Scott O’Malia, a Republican commissioner at the Commodity Futures Trading Commission, says the agency has mistakenly concentrated too much on implementing new swaps rules to comply with the 2010 Dodd-Frank law, while short-changing efforts to restore public confidence and protect the futures marketplace.