« | »

Regulators Know Where MF Global’s $ Went

From Reuters:

Exclusive: Regulators know where MF Global funds went

By Christopher Doering
December 15, 2011

WASHINGTON (Reuters) – Regulators now have a more complete picture of money transfers in the final days of bankrupt brokerage MF Global, but must sort out which transactions were legitimate before more money can be released to customers, a top official told Reuters on Wednesday.

Jill Sommers, who is heading the Commodity Futures Trading Commission’s review of MF Global, said regulators "are far enough along the trail" that they know where the money went.

"Now it’s just finding out which ones of those transactions are legitimate and which ones of them are illegitimate," Sommers said.

If the money went to political coffers or to well-connected cronies, will we ever hear?

The CFTC and the trustee liquidating the firm are under intense pressure from lawmakers and customers to provide answers about what happened to hundreds of millions of dollars in customer money that went missing as the firm collapsed.

MF Global officials, including former Chief Executive Jon Corzine, have told lawmakers they simply do not know where the money is, and deny authorizing any misuse of customer money.

"We certainly don’t want to lead anyone to believe we don’t know what happened. We do know, and we see where all the transactions went," said Sommers, a Republican commissioner, in an interview on Wednesday.

Do we normally hear the political affiliation of trade commissioners?

She declined to reveal details on the fund transfers until investigators have determined the purpose of all the transactions. Sommers could not estimate when regulators will complete their investigation, but said "really good progress" is being made.

Fellow CFTC Commissioner Bart Chilton, a Democrat, tempered expectations. Chilton said in a statement after Sommers’ remarks were published that a thorough accounting of all customer funds remains a work in progress.

"Based upon the most up-to-date information available, I do not have confidence that we know where all the money went," Chilton said…

It sure is starting to sound like there might be some political ramifications to where the money went.

This article was posted by Steve on Thursday, December 15th, 2011. Comments are currently closed.

No Responses to “Regulators Know Where MF Global’s $ Went”

Sorry, comments for this entry are closed at this time.


« Front Page | To Top
« | »