MF Global Transfer Of Astonishing Size Approved In Single Minute: Report

Apparently at MF Global, moving hundreds of millions of dollars around is the type of decision you don't spend too much time on.

Five days before MF Global collapsed, one employee got approval to move $165 million of the company's funds from one of its accounts to another, in a single minute, according to internal emails reviewed by the Wall Street Journal. Within about 15 minutes of the request, the money had been transferred, but employees soon realized that the funds had actually been taken out of a separate account of customer money -- not one of the firm's own.

The nearly split second decision may have cost the firm and it's customers big time. MF Global went bankrupt October, largely from risky bets on European debt, and managed to lose more than $1 billion of its clients' money in the process. Still, the firm will likely escape criminal prosecution, according to The New York Times, because investigators are having trouble finding evidence that MF Global workers intentionally misused the money.

Even if the company didn't lose the cash intentionally, its ex-CEO Jon Corzine still provoked outrage when he said he couldn’t find it. He told a Congressional committee in December: "I simply do not know where the money is" in reference to the missing funds. Much of the money has been traced to customer accounts and banks, according to an Associated Press report earlier this month.

Still, regulators are taking steps to try and ensure that a disaster of MF Global-proportions doesn't happen again. The Commodity Futures Trading Commission approved a rule in December that put tighter restrictions on how firms can use their customers' money.

That's likely of little comfort to MF Global customers, who have been left wondering what will happen to their money and this year's tax forms. One possibility? A battle with hedge funds over a total of more than a billion dollars. Stay tuned.

Comments

[Bunny007]

09:36 AM on 03/09/2012

KONY video on John Corzine and his crimes---

WHY is this being covered up by Washington?????

[Bunny007]

09:34 AM on 03/09/2012

The KONY video has brought home one really major IDEA who's time HAS COME!!

Like most Americans who have followed the plight of these farmers who have literally had their segregated accounts LOOTED by these white collar criminals, I am horrified by the scale of the cover up from the highest levels, and absolute lack of MEDIA COVERAGE of the unbelievable details of this case...

WHERE IS THE RULE OF LAW, we ask???? Can it really be TRUE that we allow these thugs to simply change some verbiage and completely get out of being investigated and prosecuted??

WHERE IS THE DOJ on this?? Clearly being bought off by Corzine---who should be in JAIL.

WE must insist on a KONY type video and Matt Taibi coverage, when the media has so utterly failed to do its job.

[The Halfrican]

04:56 PM on 03/05/2012

Why do lib's, Democrats & and The Huffington Post always side with these crooks ?

[Egmw]

04:16 PM on 04/25/2012

Why do the neocons and Republicans always tell us about the free market and the need to reduce regulation and defend these guys?

[castlemike]

01:35 AM on 03/05/2012

http://jessescrossroadscafe.blogspot.com/2012/03/mf-global-what-happened-to-money-money.html

MF Global: What Happened to the Money - 'This Is Not a Boat Accident'

Money does not just 'vaporize' or go missing because of sloppy bookkeeping. The crony capitalists and their friends would have you think that it was just an accident, or some unfortunate act of God for which no one can be held responsible. Like the financial crisis in the world caused by massive fraud at the big Banks for which no one has been held accountable.

The facts suggest that the customer money at MF Global was stolen, twice.

First, it was stolen by the management of MF Global, who brazenly used it to cover their own gambling losses.

Then it was stolen by the recipients of the stolen money, probably the Banks and powerful financiers, who knew that MF Global was going under, and did not want to take the losses on their own unsecured claims.

So the system was twisted to hide the involvement of powerful figures with strong ties to the political system and multinational corporations operating out of New York and the City of London.

http://www.amm.com/Article/2989026/Nonferrous/A-broker-writes-Mixed-treatment-of-MF-Global-clients-at-default-will-spark-litigation.html

[Bunny007]

09:39 AM on 03/09/2012

Americans must demand the the TRUTH about this cover up come to light!!

If the mainstream media and the DOJ so clearly are not doing their jobs-- we must do it for them. Really hoping Matt Taibi can do a Kony-style video of the bad actors involved.

We must ask ourselves--

If these segregated accounts were not SAFE, then why would we expect our bank accounts in any bank to be safe?? If all it takes it to change the rules to get out of having to pay your customers back, what makes you think these bankers won't do it again on a much larger scale this time????

HORRIFIC

[shmoo222]

01:30 PM on 03/04/2012

"Still, regulators are taking steps to try and ensure that a disaster of MF Global-proportions doesn't happen again. The Commodity Futures Trading Commission approved a rule in December that put tighter restrictions on how firms can use their customers' money."
How about huge jail to for wire fraud? lets put a few millionaires in real prison not posh minimum security and I bet we see a huge change in culture

[MGLLC]

01:00 AM on 03/04/2012

This is why investors no longer put their money here. This is why Russia, China, India and Japan now all trade with each other and other nations using their own currencies, leaving the US dollar out. The ALBA trade alliance in South American, Caribbean & Cuban markets commenced in July 2010....they don't use the dollar any longer, either.
The FED has been printing US dollars nonstop with no accounting as to how many or where they go....our economy is gutted, there is nothing behind our money but ink. When given the status of World standard Currency after WW2, our currency was backed with gold, we were the largest lending nation in the world with a powerful emerging Mfg.
Iraq and Libya wanted to remove the US dollar & replace gold as the world standard currency. We know what has happened to them. Iran has just announced it will trade with every nation using their own currencies or gold....the world is dropping the dollar like hot bricks. The world rightfully blames the US for the global economic collapse and sees the dollar as the cause. We are finished.

[Janzee12000]

05:34 PM on 03/03/2012

"MF Global Deal Of Astonishing Size Approved In Single Minute", just like my lay-off discussion with my Director...

[aforbes808]

11:58 AM on 03/03/2012

Go directly to jail. Do not pass go. Do not collect $200.

[MGLLC]

01:02 AM on 03/04/2012

Yes, but none of them go to jail. They keep their jobs, get big bonus' and go right on stealing with no fear of investigations, prosecution or punishment.

[aforbes808]

12:22 PM on 03/04/2012

People are scared and invested. They worry about their future and their childrens future. What they refuse to confront is the reality that the future is not sunny. I am an eighth generation American and this is not the America I was taught to believe in. Until a better option comes along, I guess the only solution is to occupy. Pax

[optomist1]

08:20 PM on 03/02/2012

Stop and think of how many of President Obama's cabinet members are from Fraud Street/Goldman Sachs....a president for the people??? Neither is Mitt...

[optomist1]

08:18 PM on 03/02/2012

Hey when you are "Doing God's Work", you have to move quickly!!!

[SO12]

02:07 PM on 03/02/2012

Democratic Governor of New Jersey Jon Corzine..

[GlobalCtzn]

08:18 AM on 03/03/2012

Move beyond the Dem/GOP false dichotomy, or perish in a false battle against those that are actually your allies. It matters not whether Corzine has a D or an R in front of his name. Learn who the real foes are...................

[MGLLC]

01:02 AM on 03/04/2012

Yes, the banksters, warmongers and crooked governments.

[krist6804]

02:02 PM on 03/02/2012

I am always amazed at how fast these very smart men can become dumb; “I simply do not know where that billion or whatever money your referring to went, I’m just the CEO of the company.”

[cursive -hyroglyphic-s]

08:47 PM on 03/23/2012

Selective-ignorance is so abundant with these-types.....!!

[sarabono]

02:00 PM on 03/02/2012

Corzine, his top Officers and the Board -- all with Fiduciary Responsibility -- best solve this soon or their asses should be sent to Club Gitmo for the next 50 years !

[MGLLC]

01:04 AM on 03/04/2012

Won't happen. Our system is too corrupt. Did you see the part in the article that questions if it can be prosecuted? Unbelievable. China is way ahead of us. When CEOs run companies that sicken and eliminate babies or pets with poisoned goods, they execute them.

[shmoo222]

01:32 PM on 03/04/2012

back to back posts I love, you just got a fan.

[ThinkingPatriot]

01:52 PM on 03/02/2012

Republicans would like to hand they keys to the kingdom to these types of banksters and fraudsters. The corporate kleptocracy is doing just great. They love covering bad bets and gambling losses, and are best buddies with the 'Kenny Boy' Lays, Enrons, and vulture capitalists. Mitt Romney is the living embodiment of such a worthless, parasitic, un-American politician, with his Swiss

[sarabono]

02:01 PM on 03/02/2012

Corzine is a Big D DEMOCRAT !

[MGLLC]

01:12 AM on 03/04/2012

Stop buying into that stuff! Both parties serve the same corporate interests, not us. As long as the powers that be can keep Americans blaming each other, dem vs repub, etc...we remain divided and ineffective. Divide and conquer.

[SO12]

02:06 PM on 03/02/2012

ThinkingPatriot your are not will inform not to mention the Democratic Governor of New Jersey Jon Corzine..

[BBackSoon]

01:50 PM on 03/02/2012

Steal $100 go to jail, steal $100 million walk.

Got it.