MF Global’s customer account discrepancies spur regulatory probe

Regulators say at least $700 million in customer money is missing

MF Global Holdings Ltd. collapsed into bankruptcy yesterday after a potential buyer discovered a major money problem at the securities company and halted negotiations.

MF Global, which former New Jersey Governor and ex-Goldman Sachs Co-Chairman Jon Corzine runs, was about to finalize a deal in which it would sell its assets to rival Interactive Brokers Group Inc. when Interactive Brokers discovered a discrepancy in customer accounts. Federal regulators estimate that as much as $700 million in customer money is missing.

Ashley Post

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