Unbelievable !!!
This firm, 230 years old, just declared bankruptcy and has admitted to losing millions of dollars of clients money's even though they were supposed to have segregated accounts. So much for the CFTC oversight.................
MF Global, the securities firm led by former Goldman Sachs chief and former New Jersey Gov. Jon Corzine, has admitted to using clients' money as its financial troubles mounted, a federal official said Tuesday.
An MF Global executive made the admission to federal regulators in a phone call early Monday after regulators discovered money missing from clients' accounts, The Associated Press reported, citing an official familiar with the conversation.
The official spoke on condition of anonymity because he was not authorized to discuss a preliminary investigation by federal regulators.
Government rules require securities firms to keep clients' money and company money in separate accounts. Violating the rule could result in civil penalties.
MF Global, which filed for bankruptcy protection Monday, faced a cash crunch after making multibillion-dollar bets on European sovereign debt.
Hundreds of millions of dollars of customer's money have gone missing from the brokerage firm, sources told The New York Times.