When their clients began getting an idea that MF Global was going down, they requested their money be transferred elsewhere. Instead of wiring the money, MF sent them checks by snail mail.
Now, of course, the checks are bouncing.
In the end, the issue of bad checks may pale in comparison to the missing $600 million in funds. But it is indicative of just how disorganized things were at MF Global in its waning days as Corzine & Co. raced to find a buyer for the firm.
The $600 million was missing before the bankruptcy filing. Inquiring minds want to know. Was this disorganized chaos or organized looting?
MF Global said to be subject of FBI investigation.