Federal investigators are attempting to sort out how New York-based derivatives broker MF Global has apparently up and lost $600 million of customers’ money. The FBI, U.S. Securities and Exchange Commission and the Commodities Futures Trading Commission are all reportedly investigating, amid accusations that MF Global has broken federal rules for keeping customers’ money separate from the business’s own assets.
The FBI would not confirm or deny the investigation to CNNMoney, but things don’t look good for the company. It filed for Chapter 11 bankruptcy Monday, after executives unsuccessfully tried to sell the outfit over the weekend. The CEO of CME Group says brokers and traders guaranteed by MF Global have been banned from the floors of its commodity exchange due to violations of CME and government rules.
An MF Global lawyer told Bloomberg that the alleged missing funds are all accounted for, saying “to the best of our knowledge, there is no shortfall.”
FBI investigating missing money at MF Global [CNNMoney]