After a disastruos bet on Europan debt market, MF Global on October 31, 2011 filed for bankruptcy protection, and its head, Jon Corzine, a former New Jearsey Governor, resigned on November 4, 2011. An estimated $1.2 billion is missing from customer account. Farmers, ranchers and small business owners have put their money with MF Global to hedge against risks, only to burn in the growing inferno of European debt crisis. To insulate firms such as MF Global from foreign debt crisis, Commodity Futures Trading Commission on December 5, 2011 voted to finalize rules that would limit what firms could do with customers' money.
According to a report carried by The New York Times and published by The Dallas Morning News on December 29, 2011, MF Global began transferring money from customer account on October 27, 2011 to a middleman. The firm used roughly $200 million of customer money to replenish an overdrawn account at JP Morgan Chase in London on October 28, 2011. The transfer of money to the middleman, Depository Trust & Clearinghouse Corp., a day before raised eyebrows to federal investigators.
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