MF Global: $658 Million in Missing Customer Funds Found in Account at JP Morgan

According to Bloomberg, $658.8 Million in what could be the 'missing customer funds' were 'found' today in an account at JP Morgan.

I know how it is. Sometimes you forget to check your coat pockets and miscellaneous bank statements too. Sloppy bookkeeping. Tsk tsk. Oh well, just an honest mistake, right?

JP Morgan is one of the largest holders and agents of MF Global debt.

Jefferies Group underwrote MF's bond offering late this year.

MF Global’s commodity customer funds are reported to have a shortfall of $633 million, or about 11.6 percent, out of a segregated fund requirement of about $5.4 billion, according to the CFTC.

The CME is forcing the transfer of customer accounts to other brokers who are demanding double margin and issuing margin calls and forcing liquidation of positions, sometimes at widely fluctuating prices, according to some reports.

And in related news: SEC Investigates Insider Trading of MF Bonds

Hey, now that he has resigned from MF Global, perhaps Jon Corzine will consider taking Tired Timmy's place as Treasury Secretary. He is ex-Goldman you know.

Once you pass through the glass ceiling it becomes a glass floor.