Agricultural/Financial correspondent
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Nov 10, 2011

CFTC launches investigation into bankrupt MF Global

WASHINGTON (Reuters) – The U.S. futures regulator on Thursday said it has launched a formal investigation into bankrupt MF Global, increasing pressure on the brokerage as the search for roughly $600 million in missing funds continues.

The announcement by the Commodity Futures Trading Commission is rare in that the agency typically does not publicly announce probes it is launching.

Nov 7, 2011

USDA rejects R.J. O’Brien petition to delay report

CHICAGO/WASHINGTON, Nov 7 (Reuters) – The U.S. government
brushed aside on Monday a petition by broker R.J. O’Brien to
delay its monthly crop report, saying the agriculture
department would stick to its schedule for the data monitored
not only in the United States but around the world.

R.J. O’Brien wanted the report updating U.S. crop
production and stocks to be delayed to Monday to reduce price
volatility at a time when accounts from bankrupt MF Global were
being moved to new brokerages including to R.J. O’Brien.

Nov 5, 2011

Gensler won’t participate in MF Global review

WASHINGTON (Reuters) – The head of the U.S. futures regulator working on a sweeping review into the business practices of failed futures brokerage MF Global has said he will not be participating in any further parts of the inquiry, a source told Reuters on Friday.

Gary Gensler, the chairman of the Commodity Futures Trading Commission, and Jon Corzine, who recently resigned as MF Global’s chief executive, worked at Goldman Sachs Group Inc at the same time and held prominent positions. They both left the investment bank in the late 1990s.

Nov 5, 2011

Exclusive: Gensler won’t participate in MF Global review

WASHINGTON (Reuters) – The head of the U.S. futures regulator working on a sweeping review into the business practices of failed futures brokerage MF Global has said he will not be participating in any further parts of the inquiry, a source told Reuters on Friday.

Gary Gensler, the chairman of the Commodity Futures Trading Commission, and Jon Corzine, who recently resigned as MF Global’s chief executive, worked at Goldman Sachs Group Inc at the same time and held prominent positions. They both left the investment bank in the late 1990s.

Nov 5, 2011

MF Global CEO Jon Corzine quits as big bet fails

By Jonathan Stempel and Christopher Doering

(Reuters) – Jon Corzine, one of Wall Street’s best-known stars, stepped down as MF Global Holdings Ltd’s chairman and chief executive after his bets on European debt drove the futures brokerage into bankruptcy.

The departure was announced on Friday, hours before conflicting reports surfaced about the whereabouts of $633 million of missing customer money, whose disappearance derailed MF Global’s effort this week to quickly sell a variety of assets.

Nov 4, 2011

MF Global CEO Jon Corzine quits under fire

By Jonathan Stempel and Christopher Doering

(Reuters) – Jon Corzine, one of Wall Street’s best-known stars, stepped down as MF Global Holdings Ltd’s chairman and chief executive after his bets on European debt drove the futures brokerage into bankruptcy.

The departure was announced hours before conflicting reports on Friday about the whereabouts of hundreds of millions of dollars in missing customer money.

Nov 4, 2011

CFTC must act on rule opposed by MF Global – Chilton

WASHINGTON (Reuters) – The U.S. futures regulator was encouraged by bankrupt MF Global to delay work on a rule that would prohibit brokerage firms from borrowing money from their own customers, said a top official who called the company “the new poster child for regulation.”

The Commodity Futures Trading Commission has proposed a rule under its Dodd-Frank authority that would end a practice allowing a firm to use a customers’ funds to make “proprietary” trades for its own accounts, a complex process where the firm basically gives a loan to itself. The practice is legal today.

Nov 4, 2011

CFTC must act on rule opposed by MF Global – Chilton

WASHINGTON, Nov 4 (Reuters) – The U.S. futures regulator
was encouraged by bankrupt MF Global to delay work on
a rule that would prohibit brokerage firms from borrowing money
from their own customers, said a top official who called the
company “the new poster child for regulation.”

The Commodity Futures Trading Commission has proposed a
rule under its Dodd-Frank authority that would end a practice
allowing a firm to use a customers’ funds to make “proprietary”
trades for its own accounts, a complex process where the firm
basically gives a loan to itself. The practice is legal today.

Nov 3, 2011

Regulators dig in at MF Global in money pursuit

WASHINGTON (Reuters) – U.S. regulators are launching a broad review into the business practices of failed futures brokerage MF Global Holdings Ltd as their hunt continues for over $600 million in missing customer money.

Round-the-clock shifts for examiners have become the norm as they sort through the collapse of the firm headed by former New Jersey Governor Jon Corzine. MF Global filed for bankruptcy on Monday after risky bets on European debt scared away clients and investors.

Nov 2, 2011

Regulators pushed MF Global on risky bets months ago

By Sarah N. Lynch and Christopher Doering

(Reuters) – U.S. regulators started raising concerns about MF Global’s European sovereign debt exposure as early as June, according to a source familiar with the matter, four months before the company’s collapse into bankruptcy.

The revelation comes as MF Global tries to account for hundreds of millions of dollars in client accounts that are still missing, according to a federal official. While the size is down from an initial $900 million that was missing, the source told Reuters that regulators are not sure where the money went, and why they can’t find it.

    • 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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