MF Global Said to Have Shifted Client Funds to Own Brokerage
This article is for subscribers only.
MF Global Holdings Ltd. moved hundreds of millions of dollars from its futures client accounts to its own securities brokerage before its Oct. 31 bankruptcy, according to a person familiar with the audit of the company.
MF Global ran futures and securities brokerages and was required to segregate funds posted as collateral by futures clients. The company filed the eighth-largest U.S. bankruptcy after a wrong-way $6.3 billion trade on its own behalf on bonds of some of Europe’s most indebted nations.