MF Global Sold Assets to Goldman Before Collapse

MF Global unloaded hundreds of millions of dollars' worth of securities to Goldman Sachs in the days leading up to its collapse, according to two former MF Global employees with direct knowledge of the transactions.

But it did not immediately receive payment from its clearing firm and lender, JPMorgan Chase & Co, one of the sources said.

The sale of securities to Goldman occurred on Oct.27, just days before MF Global filed for bankruptcy on Oct.31, the ex-employees said.

...

The lien puts JPMorgan's interests ahead of MF Global customers who have not yet received an estimated $900 million worth of money from their accounts, which remain frozen as regulators search for missing funds.

http://www.cnbc.com/id/45866612



I was happy tonight watching the GOP self-destruct in Iowa. Then I read this.

Those accounts were supposed to have the same level of legal protection as your bank account, lacking only the FDIC insurance.