MF Global (MFGLQ) Inc.’s $1.2 billion in missing customer funds began to filter out on Oct. 26 as the company’s computers and employees couldn’t keep up with margin calls and increased demands for collateral, according to a trustee who has traced where most of $105 billion in cash went during the company’s final days.
James Giddens, the trustee overseeing the liquidation of the failed brokerage, said today that the company didn’t record all cash movements amid the “unprecedented volume” of transactions in final days before it collapsed. After tracing 84 transactions worth $327 billion, the trustee is still analyzing where some of the money “ended up,” he said today in a statement.
The company moved $105 billion in cash in the last week before its parent filed for bankruptcy and made $100 billion in securities trades, according to the statement. The trades included liquidating customer securities and the firm’s own positions.
Full story: MF Trustee Traced $105B in Cash Movement