Risk Audit - Training and Recruitment
Tuesday, 07 February 2012

MF Global and Client Funds

The trustee dealing with the liquidation of MF Global has published a report looking at the use of segregated funds.

It notes that the deficit in client money first occurred on October 26th with a $ 300 million hole. The money was used to meet margin calls and stem the tide of client withdrawals.

By October 31st when the company went bust the unaccounted deficit rose to $ 1.2 billion.

The trustee is now seeking to trace who is holding the funds with a view to pursuing financial institutions that may have been inadvertently paid using client funds.

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