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Dec 16, 2011

MF’s Corzine takes jabs but stands firm in defense

WASHINGTON (Reuters) – Former MF Global chief Jon Corzine denied on Thursday a recent allegation that he knew customer funds were improperly used, while absorbing withering criticism from Republicans who chided the former Democratic senator for his role in the firm’s failure.

Corzine, who was taunted for staying at the Ritz Carlton in Washington while hundreds of millions of dollars of customer money remains missing, sought to address allegations about a loan to a European unit of MF Global in the firm’s final days.

Dec 15, 2011

MF Global’s Corzine denies knew of an improper loan

WASHINGTON (Reuters) – Former MF Global chief Jon Corzine denied on Thursday a recent allegation that he knew customer funds were improperly used while absorbing withering criticism from Republicans who chided the former Democratic senator for his role in the firm’s failure.

It was his third appearance in eight days before lawmakers probing MF Global’s demise and the whereabouts of hundreds of millions of dollars of customer money.

Dec 15, 2011

Corzine denies knowledge of any European loan

WASHINGTON (Reuters) – Former MF Global chief Jon Corzine on Thursday denied an allegation that he knew the now-bankrupt brokerage firm used customer money to lend to a European affiliate.

In his third appearance in eight days before lawmakers probing MF Global’s demise, Corzine immediately sought to address questions raised after he had testified at a hearing on Tuesday.

Dec 15, 2011

Exclusive: Regulators know where MF Global funds went

WASHINGTON (Reuters) – Regulators now have a more complete picture of money transfers in the final days of bankrupt brokerage MF Global, but must sort out which transactions were legitimate before more money can be released to customers, a top official told Reuters on Wednesday.

Jill Sommers, who is heading the Commodity Futures Trading Commission’s review of MF Global, said regulators “are far enough along the trail” that they know where the money went.

Dec 15, 2011

Regulators know where MF Global funds went

WASHINGTON (Reuters) – U.S. regulators now have a more complete picture of money transfers in the final days of bankrupt brokerage MF Global (MFGLQ.PK: Quote, Profile, Research), but must sort out which transactions were legitimate before more money can be released to customers, a top official told Reuters on Wednesday.

Jill Sommers, who is heading the Commodity Futures Trading Commission’s review of MF Global, said regulators “are far enough along the trail” that they know where the money went.

Dec 14, 2011

Exclusive: Regulators know what happened to MF Global funds

WASHINGTON (Reuters) – Regulators know what happened to the missing customer money from bankrupt brokerage MF Global and are working to determine whether any of the fund transfers were illegitimate, a top official told Reuters on Wednesday.

“We are far enough along the trail that we know where all the money went. Now it’s just finding out which ones of those transactions are legitimate and which ones of them are illegitimate,” said Jill Sommers, who is heading the Commodity Futures Trading Commission’s review of MF Global.

Dec 14, 2011

Regulators know what happened to MF Global funds

WASHINGTON (Reuters) – U.S. regulators know what happened to the missing customer money from bankrupt brokerage MF Global and are working to determine whether any of the fund transfers were illegitimate, a top official told Reuters on Wednesday.

“We are far enough along the trail that we know where all the money went. Now it’s just finding out which ones of those transactions are legitimate and which ones of them are illegitimate,” said Jill Sommers, who is heading the Commodity Futures Trading Commission’s review of MF Global (MFGLQ.PK: Quote, Profile, Research) .

Dec 14, 2011

Exclusive: MF Global drew up survival manual in final days

WASHINGTON (Reuters) – Just days before it declared bankruptcy on October 31, MF Global concluded it could remain solvent even if a major ratings downgrade limited its access to funding, according to an internal “break-the-glass” plan obtained by Reuters on Tuesday.

The report, which was undated but appeared to be drafted before October 20, shows how the firm was furiously mapping out scenarios as markets started losing confidence in the futures brokerage.

Dec 13, 2011

MF Global was confident it could survive

By Jed Horowitz and Christopher Doering

(Reuters) – Just days before it declared bankruptcy on October 31, MF Global concluded it could remain solvent even if lost access to funding after having its debt downgraded to “sub-investment grade,” according to a stress-test scenario obtained by Reuters.

The company document outlined an emergency funding plan that was to go into effect if the market and banks reacted poorly to its second-quarter loss, reported on October 25.

Dec 5, 2011

CFTC set to vote on rule opposed by MF Global

WASHINGTON (Reuters) – The U.S. futures regulator will vote on Monday on a rule that would put tighter limits on how brokerage firms can use customer funds, a measure now-bankrupt MF Global had encouraged the agency to delay.

The Commodity Futures Trading Commission rule would no longer allow a brokerage firm, known as a futures commission merchant, to conduct so-called “in-house” transactions where it uses customers’ funds to make proprietary trades for its own accounts, a process where the firm basically gives a loan to itself.

    • About Christopher

      "Currently based in Washington, Christopher reports on agriculture in Congress and the U.S. Agriculture Department. He also is actively involved in covering regulatory reform, with a focus on the U.S. Commodity Futures Trading Commission."
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