Millions Missing from MF Global Clients’ Money.

The bankruptcy of MF Global is revealing some interesting stories surrounding the collapse, namely, that the firm is guilty of using its clients’ money to finance its own trades, a big no-no according to the SEC. MF Global, the securities firm under the direction of former New Jersey Governor and Goldman Sachs executive Jon Corzine, chose to exercise the bankruptcy option after failing to sell the firm. A potential buyer allegedly discovered the millions in missing funds and withdrew their interest promptly. MF Global’s cash crunch comes as the result of misplaced bets on European sovereign debt which is now wracking the continent with financial crisis. Corzine’s goal was to transform MF Global into a miniature Goldman Sachs by taking on more and more risky trades but, upon being forced to reveal their bets with regard to Italian, Spanish and Portuguese sovereign debt, MF Global found it difficult to continue to function as a going concern. MF Global’s collapse is historic in that the firm had its origins in the commodities markets of over 230 years ago, all to be unraveled by mismanagement and poorly placed bets on sovereign eurozone debts.