Farmers Sue Jon Corzine Over Missing Millions - ABC News

Farmers Sue Jon Corzine Over Missing Millions - ABC News: Montana farmers have filed a class action suit against former New Jersey governor Jon Corzine, charging that the failed financial firm run by Corzine stole millions from their accounts to pay off its spiraling debts, and that Corzine's "single-minded obsession" with making MF Global a big player on Wall Street led to the firm's collapse.

MF Global's clients included 38,000 wheat farmers, cattle ranchers and others who "hedged" their crop prices by placing millions in MF Global accounts. Those accounts were supposed to be "segregated and secure," according to the federal suit, meaning MF Global could not draw on those funds.

MF Global and the Chicago connection - Chicago Tribune

Understanding the connection between MF Global and CME
MF Global and the Chicago connection - Chicago Tribune: CME is the first line of regulatory defense against the failure of MF and its other clearing members. Primarily in conjunction with its federal regulator, the Commodity Futures Trading Commission, the Chicago-based exchange operator is responsible for day-to-day oversight. It is supposed to keep track of customer funds. If MF commingled those funds with its firm's capital, as CME has said it did, the exchange and CFTC were obliged to stop it in its tracks. Either the watchdogs weren't watching or they were fooled by false reports that customer funds were safe and properly counted.

The upshot: More than three weeks after MF's collapse, no one has explained what happened to the money. A trustee appointed to handle MF's affairs announced Monday that a reported $600 million shortfall in customer funds is actually more like $1.2 billion. On Tuesday, CME disputed the trustee's number, which may end up closer to the original estimate of $600 million.