MFGI SIPA Trustee: Corzine's Risky Investments Hastened Collapse And Bankruptcy

MFGI SIPA Trustee: Corzine's Risky Investments Hastened Collapse And Bankruptcy

NEW YORK - The trustee in the Securities Investor Protection Act (SIPA) 15 U.S.C.S. § 78aaa  litigation related to the Chapter 11 bankruptcy of MF Global Holdings Ltd. (MFGH) and its affiliates on June 4 issued a report saying that risky investments by former MFGH CEO Jon Corzine exacerbated liquidity problems at the firm and hastened its collapse. The trustee recommends that federal regulators create a fund to protect customers' money from being used by financial firms to cover shortfalls in other accounts (In Re: MF Global Inc., No. 11-2790, Chapter 11, S.D. N.Y. Bkcy.). Subscribers may view the Trustee's report available within the full update.

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