The New York Times
Tuesday, November 29, 2011 -- 9:01 PM EST
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Details Emerge on MF Global's Last-Ditch Effort to Fill Shortfall
As MF Global discovered a nearly $1 billion shortfall in customer money in the midnight hours of Oct. 31, the brokerage firm lined up a last-ditch — but ultimately unsuccessful — effort to fill the hole, according to people briefed on the matter.
At the time, the revelation of missing money was about to scuttle a last-minute deal to sell part of MF Global to another brokerage. MF Global executives scrambled to assemble funds from a variety of sources, from the firm's own coffers to accounts at banks and clearinghouses, these people said.
The firm was ready to proceed with the wire transfers, but was forced to abort at the last second. Hours later, MF Global filed for bankruptcy protection. And within days, Jon S. Corzine, the former New Jersey governor, had resigned as the firm's chief executive.
Details surrounding the failed transfers are spotty, though investigators have since criticized the poor condition of MF Global's books, which may have presented an incorrect picture of how much money the firm actually had at that time.
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