As if the situation weren’t already bad, new developments in the MF Global bankruptcy suggests it’s going to get a lot worse.
According to published reports, an MF Global executive admitted to federal regulators in a phone call on Monday, that firm used clients’ money as its financial woes mounted.
Government rules require securities firms to keep clients' money and company money in separate accounts.
It isn't clear whether the violations could lead to criminal charges however Jake Zamansky of Zamansky & Associates tells us, “I fully expect that both civil and legal charges will be filed against the management and Jon Corzine.”
Find out more about the possible legal fall out. Check out our entire conversation with Jake Zamansky. Watch the video now!
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Trader disclosure: On November 1, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Terranova is long APC; Terranova is long F; Terranova is long AAPL; Terranova is long FCX; Terranova is long CAT; Terranova is long AXP; Terranova is long EMC; Terranova is long IBM; Adami Owns AGU; Adami Owns C; Adami Owns GS; Adami Owns INTC; Adami Owns MSFT; Adami Owns NUE; Adami Owns BTU; P. Najarian is long AAPL; P. Najarian is long AKS; P. Najarian is long C; P. Najarian is long WFC; P. Najarian is long MS; P. Najarian is long INTC; P. Najarian is long MSFT; P. Najarian is long FCX calls; P. Najarian is long F calls; P. Najarian is long PFE; P. Najarian is long MRK; Finerman owns AAPL; Finerman owns BAC; Finerman owns MSFT; Finerman owns GOOG; Finerman’s firm owns AAPL short calls; Finerman’s firm owns JPM; Finerman’s firm owns YHOO short calls; Finerman’s firm owns IBM short calls; Finerman’s firm owns MSFT; J. Najarian is long DB; J. Najarian is long CBOE; J. Najarian is long CME; J. Najarian is long CIGX; J. Najarian is long MDR; J. Najarian is long MSFT; J. Najarian is long AKAM call spreads
For Fred Cannon
KBW expects to receive or intends to seek compensation for investment banking services from MF Global in the next three months. KBW currently makes a market and/or acts as a liquidity provider in MF Global securities
For Jim Bianco
For Tom Porcelli
For Jeremy Wien
For Jake Zamansky
CNBC.com with wires.