The trustee overseeing the wind-down of MF Global’s brokerage said more than $1.2 billion in customer funds could be missing from the failed firm, more than double the original estimate of missing cash.
Trustee James W. Giddens also said in a statement Monday that returning 60% of funds to the firm’s former customers—a previously stated goal—will require $1.3 billion to $1.6 billion. Those figures represent “virtually all of the assets under the trustee’s control.”
The current estimate of $1.2 billion in missing funds represents funds that should have been segregated in stand-alone customer accounts by MF Global in accordance with regulations, the trustee said. However, Mr. Giddens cautioned that “these are preliminary numbers that may well change.”