It’s either missing-missing or there but just in hiding as a result of “sloppy internal controls.”

Federal regulators have discovered that hundreds of millions of dollars in customer money has gone missing from MF Global in recent days, prompting an investigation into the brokerage firm, which is run by Jon S. Corzine, the former New Jersey governor, several people briefed on the matter said on Monday. The recognition that money was missing scuttled at the 11th hour an agreement to sell a major part of MF Global to a rival brokerage firm. MF Global had staked its survival on completing the deal. Instead, the New York-based firm filed for bankruptcy on Monday. Regulators are examining whether MF Global diverted some customer funds to support its own trades as the firm teetered on the brink of collapse.

The discovery that money could not be located might simply reflect sloppy internal controls at MF Global. It is still unclear where the money went. At first, as much as $950 million was believed to be missing, but as the firm sorted through its bankruptcy, that figure fell to less than $700 million by late Monday, the people briefed on the matter said. Additional funds are expected to trickle in over the coming days.

Regulators Investigating MF Global for Missing Money [Dealbook]

Comments (23)

  1. Posted by Guest | October 31, 2011 at 10:03 PM

    Maybe he used it to replace the pension money he stole from NJ for his union girlfriend

  2. Posted by bandit | October 31, 2011 at 10:04 PM

    He is Cramer's bestfriend.Go figure!

  3. Posted by Sveta | October 31, 2011 at 10:19 PM

    Supposedly we have some of it.

    ~UBS MD's Assistant

  4. Posted by guest | October 31, 2011 at 10:22 PM

    You know no one else can hear those voices in your head, right?

  5. Posted by Guest | October 31, 2011 at 10:34 PM

    Anyone take a look for it in Mandy's cleave?

  6. Posted by merkin_capital | October 31, 2011 at 10:56 PM

    "Sloppy internal controls!" is also the sub-heading for Lynn Tilton's match.com profile.

  7. Posted by Guest | November 1, 2011 at 1:14 AM

    After a full day of articles and threads regarding the rapid demise of MF Global. I thought I should wrap things up for everyone with one final key take away point.

    Don't ever hire an ex-UBS risk manager to manage your risks.

    We can move on now.

  8. Posted by Concerned UBS trader | November 1, 2011 at 6:43 AM

    Is my $40 million paper account still safe?

  9. Posted by comptroller | November 1, 2011 at 7:53 AM

    see prev.

  10. Posted by nachocheese | November 1, 2011 at 8:24 AM

    maybe they just "misremembered"

    roger clemens

  11. Posted by Jacob Moore | November 1, 2011 at 8:29 AM

    Does it really matter where it went? I'm sure whoever took it plans to pay it back.

    -Lightsquared investor

  12. Posted by Not Me | November 1, 2011 at 8:37 AM

    UBS loses $700MM on a good day.

  13. Posted by Jim Glover | November 1, 2011 at 9:10 AM

    "Sloppy Internal Controls" – I should have worked at MF Global

    Former RBS MD

  14. Posted by Guest | November 1, 2011 at 9:38 AM

    We had the same problem, still looking for the international accounts.

    - Bluth Corp. Auditors

  15. Posted by G. Bluth | November 1, 2011 at 9:45 AM

    There's always money in the banana stand.

  16. Posted by Answer d | November 1, 2011 at 9:54 AM

    It was a mispunch.

    Statement will be correct tomorrow, gotta roll.

  17. Posted by guest | November 1, 2011 at 10:53 AM

    Having enough capitol and expertise to be able to "front-run" all your client's trades like GS…..Then NKI!
    Trying to get enough capitol and talent to build a GS type empire, not too easy to do. F**K IT! lets just steal all the idiots money this quarter, we'll have 3 months to cover our trades……
    Patience is a virtue Mr Corrazine, you obviously have none!

  18. Posted by Principal | November 1, 2011 at 11:03 AM

    Guest, what you have just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone in this thread is now dumber for having listened to it. I award you no points, and may God have mercy on your soul.

  19. Posted by Spanishmoon | November 1, 2011 at 12:16 PM

    In some warehouse in New Jersey, one million Extra-large sweater vests, pledged as collateral, lie in mothballs………..

  20. Posted by Yeah | November 1, 2011 at 1:26 PM

    A Democrat, stealing money? Shocker.

  21. Posted by Red Pen | November 1, 2011 at 2:11 PM

    …plus you missplled capital (twice).

  22. Posted by guest2 | November 1, 2011 at 2:44 PM

    yeah that was the problem.

  23. Posted by guest | November 2, 2011 at 12:28 AM

    F**K! my Android spelling nanny. F**K GS and F**K ewe too!

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