The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter (subscribe here) the morning of November 29, 2011.

In the wake of the MF Global bankruptcy, John Lothian Newsletter has created a special section on devoted to news, information and commentary. The section features archived news stories featured in the John Lothian Newsletter, analysis and breaking news. Check regularly for updates. See the MF Global news section here.

U.S. regulators doubt MF Global shortfall estimate
U.S. regulators are privately questioning a bankruptcy trustee’s estimate that puts the shortfall in MF Global Holdings’ customer funds at around $1.2 billion, a source familiar with the matter said Monday. The source said regulators believe at least $220 million is being double-counted by the trustee, taking the total shortfall at the brokerage to just under $1 billion.

Corzine Pushed Europe Bet to $11.5 Billion as Board Balked
Jon Corzine bet $11.5 billion on European sovereign debt in his bid to rebuild profits at MF Global Holdings Ltd., almost twice the net amount disclosed to investors, and relied on short-term hedges that left the firm exposed to larger losses if they couldn’t be rolled over.

DealBook: Widening Hunt for Details of MF Global’s Collapse
New York Times
Jon S. Corzine, the firm’s former chief, has been asked to appear at two Congressional hearings. Meanwhile, the appointment of Louis J. Freeh, the former F.B.I. director, as an MF Global trustee may open up more information.

US Senator Calls On Corzine To Testify At Hearing
WASHINGTON — Sen. Debbie Stabenow (D., Mich.) Monday called on John Corzine, the former chief executive of MF Global Holdings Ltd. (MFGLQ), to testify at a Dec. 13 hearing about funds missing from the failed broker-dealer. A House Financial Services subcommittee has also invited Corzine to testify along with regulators at a hearing on Dec. 15.

Agency likely to approve rule to restrict how firms invest customer funds, link with MF Global
WASHINGTON – Federal regulators are likely to approve a rule next week restricting how firms trading in futures can invest customer funds, an issue related to the collapse of brokerage firm MF Global. The Commodity Futures Trading Commission says its five members will vote on making the rule final at a public meeting next Monday. Read full article

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