MF Global cash 'is in London'
Investigators on the hunt for more than $1 billion (£644 million) of customers' money that seems to have gone missing from collapsed broker MF Global reckon a chunk of it has turned up in the London accounts of JPMorgan.
MF Global went under after a $6 billion bet on European sovereign debt went bad.
It is alleged the company used customer money to cover up some of its losses, a serious breach of financial regulations.
According to the New York Times the broker moved $200 million to a JPMorgan account just days before it filed for bankruptcy. The bank had no comment on the matter.
Several groups are investigating MF, including the FBI and the Commodity Futures Trading Commission. So far no one has been charged with wrongdoing.
The firm was led by Jon Corzine, a former Goldman Sachs chief who moved into politics, becoming Governor of New Jersey.
MF employed 750 people at its Canary Wharf offices.
Some of them have been kept on to handle the wind-down of the firm, which is being orchestrated by KPMG.
KPMG said yesterday that MF Global UK clients can formally make applications from December 8 this year to reclaim missing money.
MF Global clients' frustration has focused on inconsistency by the world's top futures exchanges and clearing houses.
Some of them responded to the MF collapse by liquidating positions while others moved them to other brokers.
