Trustee warns MF Global shortfall could hit $1.2B

Source: Chicago Tribune

The apparent shortfall of customer funds at MF Global Holdings Ltd.'s broker-dealer unit may be around $1.2 billion, about double initial estimates from regulators, the trustee liquidating the company said on Monday.

The amount of money MF Global should have segregated for customers may be short by "$1.2 billion or more," trustee James Giddens said in a statement. He added that the figure could still change.

Giddens also said he controls about $1.6 billion of the brokerage's funds that he can use to pay back customers whose accounts were frozen when MF Global went bankrupt on Oct. 31. His plans to pay back 60 percent of customer funds by early December would nearly exhaust that amount.

The announcement was Giddens' first public statement on the amount of money under his control and his estimate of the size of the shortfall, which regulators initially had said was about $600 million.

Read more: http://www.chicagotribune.com/business/breaking/chi-mf-global-trustee-says-shortfall-may-be-bigger-20111121,0,7508404.story

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Corzine is going to go down in history with other famous crooks like Madoff and Skilling.

His #1 job is to make sure that he kept his customers funds segregated from the companies. This cannot happen by accident. It was deliberate theft.

Fuck you very much, Corzine.

Excellent chance of prison in his future.