iOS app Android app More

MF Global Bankruptcy: Portion Of Missing Customers' Funds Possibly Found At UK JPMorgan Chase

First Posted: 11/29/11 08:31 AM ET Updated: 11/29/11 01:31 PM ET

Mf Global

About $200 million in customer funds missing at MF Global may have surfaced at JP Morgan Chase in Britain, the New York Times said, citing people briefed on the matter.

During MF Global's last days, it overdrew an account at JPMorgan, the newspaper said, citing a person close to the matter. MF Global transferred roughly $200 million in the days before the firm filed for bankruptcy, the paper reported.

MF Global filed for Chapter 11 protection on October 31 after the New York-based company revealed it had made a $6.3 billion bet on European sovereign debt, spooking investors.

Regulators are trying to determine what happened to the missing money and whether MF Global may have improperly mixed customer funds with its own, a violation of industry rules. The total shortfall at the brokerage is estimated to be just under $1 billion.

Officials with MF Global and JP Morgan could not immediately be reached for comment by Reuters outside regular U.S. business hours. A representative for MF Global trustee, James Giddens, was not available either.

(Reporting by Swetha Gopinath in Bangalore; Editing by Matt Driskill)


Copyright 2011 Thomson Reuters. Click for Restrictions.

FOLLOW HUFFPOST BUSINESS
Subscribe to the HuffPost Money newsletter!
Filed by Harry Bradford  |