Agricultural/Financial correspondent
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Dec 3, 2011

Exclusive: MF Global mixed funds, transferred abroad

WASHINGTON (Reuters) – Regulators investigating the collapse of MF Global have determined that the firm combined money between securities and futures accounts owned by customers, and transferred funds outside the country to at least one entity, a source said on Friday.

“The further we get into (the investigation) the more complex it is … but we’re making progress,” the source said, adding that the commingling and transferring of money is making it harder for regulators to determine what money belongs where.

Dec 3, 2011

MF Global mixed funds, transferred abroad – source

WASHINGTON (Reuters) – Regulators investigating the collapse of MF Global have determined that the firm combined money between securities and futures accounts owned by customers, and transferred funds outside the country to at least one entity, a source said on Friday.

“The further we get into (the investigation) the more complex it is … but we’re making progress,” the source said, adding that the commingling and transferring of money is making it harder for regulators to determine what money belongs where.

Dec 2, 2011

Wall St sues CFTC over commodity trading crackdown

WASHINGTON, Dec 2 (Reuters) – Two major financial
trade groups sued the U.S. futures regulator on Friday over new
rules to crack down on commodity speculation, launching a second
legal assault against the biggest U.S. financial overhaul in
decades.

The suit, which had been widely expected given years of
fierce debate over the need for so-called “position limits”, the
groups said the Commodity Futures Trading Commission’s rule to
prevent excessive speculation in markets like oil and gold was
procedurally flawed and “lacked a reasoned basis.”

Dec 2, 2011

Wall Street sues CFTC over trading crackdown

WASHINGTON (Reuters) – Two major financial trade groups sued the U.S. futures regulator on Friday over new rules to crack down on commodity speculation, launching the second legal assault against the biggest financial overhaul in decades.

In a broadside from Wall Street that had been widely expected, the groups said the Commodity Futures Trading Commission’s so-called position limits rule was deficient in its make up and that the rule “lacked a reasoned basis.”

Dec 1, 2011

US senators blast CFTC, Gensler for MF Global mess

WASHINGTON, Dec 1 (Reuters) – Republican lawmakers blasted
the chairman of the U.S. futures regulator on Thursday for his
agency’s role in the collapse of MF Global and called his
recusal from the investigation a way to “avoid the heat.”

The Commodity Futures Trading Commission and its chairman,
Gary Gensler, are under pressure because of the quick collapse
of the futures brokerage and for allegedly not policing the
firm’s bookkeeping closely enough.

Dec 1, 2011

US senators to probe regulators’ role in MF Global

WASHINGTON, Dec 1 (Reuters) – U.S. senators plan to press
regulators on Thursday on whether they were asleep at the switch
as now-bankrupt MF Global took on massive risky bets,
and why hundreds millions of dollars in customer funds are still
missing.

Commodity Futures Trading Commission Chairman Gary Gensler is
one of the regulators called to testify before the Senate
Agriculture Committee, in the first major congressional hearing
about MF Global since it filed for bankruptcy on Oct. 31.

Nov 29, 2011

Lawmaker presses CFTC on MF Global collapse

WASHINGTON, Nov 29 (Reuters) – A House Republican lawmaker
is pressing Gary Gensler, the head of the Commodity Futures
Trading Commission, on whether early signs of MF Global’s
collapse fell through the cracks.

Representative Randy Neugebauer, chair of the House
Financial Services subcommittee on oversight and
investigations, said in his letter to Gensler he was “concerned
about the effectiveness” of regulators and self regulatory
organizations that oversee MF Global .

Nov 29, 2011

CFTC to vote on funds rule opposed by MF Global

WASHINGTON (Reuters) – The U.S. futures regulator said on Monday it will vote at its December 5 meeting on a rule that would prohibit brokerage firms known as futures commission merchants from investing customer funds, a measure that now-bankrupt MF Global had encouraged the agency to delay.

The Commodity Futures Trading Commission has proposed a rule under its Dodd-Frank authority that would virtually eliminate the brokers’ ability to invest their clients’ excess margin, or collateral for future trades, in corporate notes, bonds and commercial paper.

Nov 28, 2011

Regulators doubt MF Global shortfall estimate

WASHINGTON, Nov 28 (Reuters) – U.S. regulators and law
enforcement believe a bankruptcy trustee has overestimated the
amount of customer funds missing at MF Global (MFGLQ.PK: Quote, Profile, Research),
according to sources familiar with the matter.

One source said on Monday that regulators believe at least
$220 million is being double-counted by the trustee, taking the
total shortfall at the brokerage to just under $1 billion.

Nov 28, 2011

Regulators doubt MF Global shortfall estimate

WASHINGTON, Nov 28 (Reuters) – U.S. regulators and law
enforcement believe a bankruptcy trustee has overestimated the
amount of customer funds missing at MF Global (MFGLQ.PK: Quote, Profile, Research),
according to sources familiar with the matter.

One source said on Monday that regulators believe at least
$220 million is being double-counted by the trustee, taking the
total shortfall at the brokerage to just under $1 billion.

    • 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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