MF Global shortfall could be more than $1.2 billion

MF Global, Jon Corzine’s failed brokerage company, may now be missing up to $1.2 billion in segregated customer accounts, said the trustee overseeing its liquidation, Bloomberg reported.

James Giddens released a statement today, which said that distributing 60 percent of what should have been in customers’ accounts will take $1.3 billion to $1.6 billion, or practically all of the assets he has in his control, Bloomberg reported. The transfer is expected to happen in early December, except Giddens said he doesn’t have access to funds beyond $1.6 billion.

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The statement did say Giddens and his office were still searching for the missing funds, along with regulators and the Justice Department, The New York Times reported. Giddens has not elaborated on what might have happened to the money. Investigators believe MF Global may have improperly used customer money to cover trading losses.

MF Global filed for bankruptcy in October after making bad bets on European sovereign debt. Giddens’ office does not have access to money that was held in foreign subsidiaries of MF Global, which are now under the control of bankruptcy trustees in those countries, The Times reported.

Read more at GlobalPost: Jon Corzine resigns from bankrupt MF Global

Originally it was reported that $700 million in MF Global customer accounts were missing, as regulators such as the SEC started looking into the company. Corzine, former New Jersey governor, resigned days after his company declared bankruptcy. By Nov. 11 the entire brokerage arm of the workforce had been fired.

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