The New York Times
Monday, November 21, 2011 -- 11:27 AM EST
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MF Global Trustee Estimates Shortfall Could Be More Than $1.2 Billion
The court-appointed trustee overseeing the liquidation of MF Global's brokerage now estimates that the shortfall in the firm's customer funds could be more than $1.2 billion, double previous estimates.
The office of the trustee, James W. Giddens, said in a statement on Monday that it is continuing to search for the missing funds, in conjunction with regulators and the Justice Department. He added that the numbers are preliminary and could change.
Mr. Giddens's office did not elaborate on what may have happened to the money, though investigators are currently focused on the possibility that MF Global improperly used customer money to cover trading losses in the days before its bankruptcy filing.
Separately, Mr. Giddens's office said that it has already distributed about $1.5 billion in customer funds meant to support trading positions, and that $520 million in additional cash will be paid out soon.
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