In a mere 24-hours, MF Global has gone from being a bankrupt brokerage firm with a famous CEO to a federal investigation soon involving the FBI. NBC New York reports that the FBI alongside federal prosecutors are about to join the investigation into how as much as $700 million went missing from the accounts of clients at MF Global, the brokerage lead by former New Jersey Governor and the CEO of Goldman Sachs Jon Corzine. In a separate inquiry, the Justice Department, the Securities and Exchange Commission and the Commodities Future Trading Commission will also be investigating the firm's collapse, according to the report. An SEC spokesman tells NBC New York that MF Global has "possible deficiencies in customer futures segregated accounts held at the firm.”
How fast things have changed for MF Global and Corzine. Earlier this afternoon, the Associated Press broke news that MF Global admitted to co-mingling client money with its own funds during a phone call with federal regulators on Monday morning. The AP noted that the action could be civil violation. "Government rules require securities firms to keep clients' money and company money in separate accounts."