Meanwhile, MF Global CEO Jon Corzine reportedly had a handshake deal Sunday evening for Interactive Brokers to buy the company.
But as the potential acquirer sifted through MF’s books, officials became concerned about the amount of customer funds held on deposit by MF Global. The difference was roughly $900 million at one point, although the amount remained fluid and never was resolved, according to WSJ sources.
Federal regulators have now started investigating the situation. According to the New York Times, authorities believe that the amount of unaccounted money could be close to $700 million. The report said that investigators are concerned that rather than just sloppy accounting, MF Global in its rush to remain afloat diverted some customer funds to support its own trades.
Wednesday, November 02, 2011
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