MF Global is one of 22 dealers authorized to trade U.S. government securities
10-31-2011, 08:47 PM,
MF Global is one of 22 dealers authorized to trade U.S. government securities

On their homepage they have a link titled,

"How MF Global protects client assets."

That's below a new statement that reads:

Quote:Due to MF Global Holdings Ltd. and its finance subsidiary, MF Global Finance USA Inc., filing for Chapter 11 Bankruptcy Petition, the CME Group, NYMEX and ICE are accepting "liquidation only" orders from MF Global clients

So what's going on? Reuters:
Quote:MF Global Holdings Ltd , the futures broker that made big bets on European sovereign debt, filed for U.S. Chapter 11 bankruptcy protection, making it the biggest U.S. casualty of the euro-zone crisis.

But, wait, there's more to this story. NYT:

Quote:9:55 p.m. | Updated
Federal regulators have discovered that hundreds of millions of dollars in customer money has gone missing from MF Global in recent days, prompting an investigation into the brokerage firm, which is run by Jon S. Corzine, the former New Jersey governor, several people briefed on the matter said on Monday.

...Regulators are examining whether MF Global diverted some customer funds to support its own trades as the firm teetered on the brink of collapse.

The discovery that money could not be located might simply reflect sloppy internal controls at MF Global. It is still unclear where the money went. At first, as much as $950 million was believed to be missing, but as the firm sorted through its bankruptcy, that figure fell to less than $700 million by late Monday, the people briefed on the matter said.

Wall Street needs to be cleaned up. There is no accountability. Banks and firms need to suffer financially for their mistakes instead of being bailed out. And when there is clear wrongdoing there needs to be jail time and huge financial repercussions -- not just fines that sound large to the public but are insignificant in the grand scheme of things.

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