MF Global’s October 2011 bankruptcy was the eighth largest bankruptcy by assets in the United States. James Giddens, the bankruptcy trustee, issued a press release on February 6 stating that his investigation found that money from customer accounts that was supposed to be segregated was improperly used to fund MF Global’s daily activities. Improper transfers of customer money occurred regularly in amounts under $50 million before MF Global’s bankruptcy. MF Global wasn’t caught, because it put the money back before customers knew it was missing. More in the Huffington Post here.
