MF Global Under FBI Scrutiny

FBI logoMF Global, (MF) a Wall Street brokerage firm led by former New Jersey governor and Goldman Sachs CEO Jon Corzine, is under the investigation of FBI (Federal Bureau of Investigation) and other federal regulators including the U.S. Securities and Exchange Commission and the Commodities Futures Trading Commission. The investigators are investigating how $600 million of MF Global Customers money had gone missing. Later this weekend, MF Global had tried selling the firm to Interactive Brokers. However this move failed, due to the missing of funds and led the firm into bankruptcy.  MF Global has broken the governmental and CME rules which clearly direct firms not to mix the firm’s assets and the customers funds. Craig Donohue, CEO of CME Group said that CME is still investigating into the matter to check the extend of the violation. He also announced that floor brokers and traders guaranteed by MF Global have been banned from the CME Trading Platform.   It is hinted that MF Global got involved in some risky bets owing huge amounts of money to the European Government. When the bets went sour, MF Global had tapped its client’s money to elevate its financial position. This is in clear violation of CME rules and the Commodities Futures Trading Commission rules on such bets.

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