Jamie Dimon May Have Jon Corzine's 'Missing' Money (Update 1)
MF Global story updated with JPMorgan Chase statement.
NEW YORK ( TheStreet) -- Client money missing from MF Global (MFGLQ.PK) has been located in a custodial account at JPMorgan Chase (JPM), Bloomberg reported, citing two people familiar with the matter.
|MF Global Jon Corzine|
An MF Global custodial account at the bank contained about $658.8 million of client funds as of October 31, according to the report. Regulators had said about $633 million of client money meant to be part of a segregated fund was missing, sparking allegations that the brokerage, which filed for bankruptcy Monday, had violated rules that required customer funds be kept separate from the firm's money.
"MF Global maintains a number of accounts at JPMorgan. Due to confidentiality obligations, we are not able to disclose publicly the balances held in those accounts, nor do we have any information as to whether any such balances are related in any way to the "missing" customer funds referred to in recent press accounts," Mary Sedarat, a JPMorgan spokeswoman said in an emailed statement."What we can confirm is that the accounts and their balances have been and continue to be wholly transparent to MF Global and the recently appointed SIPA trustee. We have followed and will continue to follow instructions regarding these accounts, as authorized by the bankruptcy court, the trustee and regulators," she said. MF Global's lawyer had maintained that the shortfall was a result of money stuck at banks handling trades or unintentional bookkeeping, according to the Wall Street Journal. --Written by Shanthi Bharatwaj in New York
>To contact the writer of this article, click here: Shanthi Bharatwaj. >To follow the writer on Twitter, go to http://twitter.com/shavenk. >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV