MF Global says a rogue trader rang up $141.5 million in losses in the broker's own account.
The New York-based company says a wheat trader was able to conduct unauthorized trades on Wednesday thanks to a failure in the entry-order system the broker uses to vet trades. MF Global fired the trader.
MF Global clears its own trades, meaning it is responsible for the $141.5 million in losses the trader rang up. The company said its clients' money is not threatened.
MF Global hired a technology consultant to examine the system that should have blocked these trades.
This comes weeks after Jerome Kerviel, a trader at Societe Generale, rang up more than $7 billion in losses on his company's account by placing unauthorized bets on European stock indexes.