Nightmare for MF Global Customers: They Really Might Not Get Their Money Back
This is certainly going to make a lot of people angry.
MF Global commodity customers hoping to retrieve their funds may actually have to share some of their cash with other clients unless the missing $600 million is found, Bloomberg reported.
After MF Global filed for bankruptcy it was revealed the broker-dealer was missing $600 million.
At first it was reported the missing funds were in an account at JPMorgan . However, JPMorgan denied those claims.
The latest clue to finding the unaccounted funds emerged yesterday when Reuters reported that federal investigators searching for the missing funds are looking at Chicago-based Harris Bank as a starting point. So unless the missing funds are recovered, the broker-dealer's customers are probably going to have to take a haircut meaning they will not get 100 cents for every dollar.
This story originally appeared on Business Insider
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