Thursday, November 17, 2011


In the last days before MF Global’s collapse, the firm was borrowing cash from its customers without backing the loans, a serious violation of Wall Street rules that regulators believe contributed to $600 million of missing money.

Investigators have now zeroed in on the suspect borrowing at the commodities and derivatives brokerage firm, which at the time of its collapse was run by Jon S. Corzine, according to people briefed on the investigation. At least some of the borrowed customer cash was used to pay off bad bets made by MF Global, regulators suspect, meaning the money is not simply missing. It is gone.