How JP Morgan And George Soros Ended Up With MF Global Customer Money — Clearing and Settlement

How JP Morgan And George Soros Ended Up With MF Global Customer Money — Clearing and Settlement: How JP Morgan And George Soros Ended Up With MF Global Customer Money
January 8, 2012 By RSS Feed Leave a Comment

In recent testimony before a Congressional committee, MF Global’s former chief Jon Corzine as well as other MF Global executives said repeatedly the didn’t know where the failed brokerage firm’s $1.2 billion of missing client money was. In fact, MF Global executives knew exactly what happened to the money, as do the regulators who oversaw the firm’s bankruptcy. The so-called segregated customer funds were repeatedly, and legally (through re-hypothication), used as collateral for MF Global loans for 100:1 leveraged bets on European sovereign debt.