The dust from the bankruptcy filing of MF Global has yet to settle and a clear picture of the situation appears to be a ways off. Much of the current concern is revolving around some customer funds that appear to have been used in some capacity to stave off the bankruptcy and were comingled with company funds. Some of this money still appears to be missing.
Federal officials told the Associated Press that, “MF Global, the securities firm led by Jon Corzine, admitted using clients’ money as its financial troubles mounted.” Additionally it appears the FBI will get involved to “investigate whether the firm’s actions violated criminal laws.”
The scope of the FBI’s involvement is not yet clear, but they do appear to be interested in the missing customer funds. There have been multiple and somewhat conflicting reports on the current whereabouts of the money, believed to be more than $600 million.
There were some initial reports that some or all of the money had been located in an account at JP Morgan, but as of Monday November 7th, marketwatch.com is reporting that “Nearly $600 million in missing funds from bankrupt MF Global is still missing, in spite of earlier reports it had been found in an account at JP Morgan.” Marketwatch.com also reports that at least some MF Global customer funds have been located and frozen in various states including New York, Illinois, and Connecticut.
The fate of the missing customer funds certainly is a concern for and will impact MF Global account holders, but it may additionally impact the ultimate value of MF Global Bonds. An article we posted last week (http://www.whitesecuritieslaw.com/2011/11/03/update-on-the-potential-recovery-of-mf-global-bonds-including-6-25-senior-unsecured-notes/) indicated that some industry experts think that finding the money is critical for the value of recently issued MF Global bonds. The price of the unsecured debt, including the 6.25% Senior Unsecured Notes due 2016, have fluctuated wildly over the last several weeks.
The White Law Group is currently investigating and monitoring this situation in order to assist MF Global investors holding MF Global bonds in determining the best way to recover their investment losses.
If you have invested in an MF Global 6.25% Senior Unsecured Note of another MF Global Bond and would like to speak to a securities attorney about your potential to recover investment losses please call our Chicago office at 312-238-9650.
The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Boca Raton, Florida.
For more information on The White Law Group, please visit our website at http://www.whitesecuritieslaw.com.