John Corzine’s failed brokerage, MF Global, like all brokers, was supposed to keep its clients’ money in a “segregated account”, completely separate from its own funds. Except regulators are now saying the segregated fund is a little short, about $600 million short.
So if you were either smart enough, or lucky enough, to get your money
out before MF went toes up, you’ re probably breathing a sigh of relief, right? Well, you might not be out of the woods after all.
At issue is MF Global’s “segregated accounts” — client money meant to be kept strictly separate from the broker’s s own funds, but which regulators say is now $600 million short.
Reuters reports that the bitllionaire Koch brothers were among the smart, or lucky ones (How could they have amassed all those billions if they weren’t lucky?) who withdrew their fundsre prior to MF Global’s bankruptcy.