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MF Global customer cash shortfall 'doubles to $1.2bn' | MF Global customer cash shortfall 'doubles to $1.2bn' |
(about 3 hours later) | |
The shortfall in customer cash held by collapsed brokerage firm MF Global may have doubled to $1.2bn (£760m), according to liquidators. | The shortfall in customer cash held by collapsed brokerage firm MF Global may have doubled to $1.2bn (£760m), according to liquidators. |
Original estimates of a shortfall in customer cash were around $600m. | |
MF Global was run by former Goldman Sachs chief Jon Corzine before its Chapter 11 bankruptcy filing. | MF Global was run by former Goldman Sachs chief Jon Corzine before its Chapter 11 bankruptcy filing. |
The bankruptcy came after the company, which is based in New York, revealed that it had made a $6.3bn bet on European sovereign debt. | The bankruptcy came after the company, which is based in New York, revealed that it had made a $6.3bn bet on European sovereign debt. |
Mr Corzine resigned from the company on 4 November. | Mr Corzine resigned from the company on 4 November. |
Bankruptcy trustee James Giddens said: "The amount of money MF Global should have segregated for customers may be short by $1.2 billion or more." | Bankruptcy trustee James Giddens said: "The amount of money MF Global should have segregated for customers may be short by $1.2 billion or more." |
He added that the figure could still change. | He added that the figure could still change. |
Mr Giddens is leading an investigation into claims that MF Global misused its customers' cash in its final days of trading to shore up its own finances. | Mr Giddens is leading an investigation into claims that MF Global misused its customers' cash in its final days of trading to shore up its own finances. |
He currently controls about $1.6bn of the brokerage's funds that he can use to pay back customers whose accounts were frozen when MF Global went bankrupt on 31 October he said. | He currently controls about $1.6bn of the brokerage's funds that he can use to pay back customers whose accounts were frozen when MF Global went bankrupt on 31 October he said. |
His plans to pay back 60% of customer funds by early December would almost completely use up that cash. | His plans to pay back 60% of customer funds by early December would almost completely use up that cash. |
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