MF Global’s Shortfall May Exceed $1.2 Billion, Trustee Says
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The shortfall in MF Global Inc.’s U.S. segregated customer accounts may exceed $1.2 billion, more than double what was previously expected, said the trustee overseeing a liquidation of the failed brokerage.
That would mean customer accounts are missing about 22 percent of their total of $5.4 billion. A shortfall of 11 percent had been previously estimated by a person with knowledge of probes into the firm’s collapse. James Giddens, the trustee, said yesterday that forensic accountants and investigators are working “around the clock,” and the estimate may change.