Federal regulators have discovered that hundreds of millions of dollars in customer money have gone missing from MF Global in recent days, prompting an investigation into the company’s operations as it filed for bankruptcy on Monday, according to several people briefed. They’re examining whether MF Global diverted some customer money to support its own trades as the firm teetered on the brink of collapse.
What began as nearly $1 billion missing had dropped to less than $700 million by late Monday. It is unclear where the money went, and some money is expected to trickle in over the coming days as the firm sorts through the bankruptcy process, the people said.
http://dealbook.nytimes.com/2011/10/31/regulators-investigating-mf-global/
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