1K MF Global Workers Sacked

Tracking missing funds becomes mammoth task
By Matt Cantor,  Newser User
Posted Nov 11, 2011 1:03 PM CST
An MF Global sign in Manhattan.   (Getty Images)

(Newser) – The bankrupt MF Global has informed all 1,066 of its broker dealer employees that they’re out of a job, effective immediately, the firm’s court-appointed trustee said in a statement. They’ll have their salaries paid until next week, and up to 200 will be rehired to help “wind down” the company. The 2,847 employees of parent company MF Global Holdings, however, have thus far escaped such a fate, Fox Business reports.

The trustee is looking to “immediately vacate” MF Global’s Manhattan offices, though it will maintain its Chicago office for the time being. Meanwhile, some 17,000 customer account positions and $1.5 billion of customers’ cash has been moved to other futures companies. But $600 million of customers’ money is still missing, and tracking it down is proving a nightmare thanks to poor recordkeeping, the Wall Street Journal reports. “Their books are a disaster,” says a regulator. “We're trying to figure out what numbers are the real numbers.” Click through for more on the search for MF Global funds. (Read more MF Global stories.)

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