The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter (subscribe here) the morning of December 13, 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.

Other MF Officers Mystified by Missing Funds
A pair of MF Global Holdings Ltd. executives plan to tell a Senate committee Tuesday that they don’t know what became of an estimated $1.2 billion in the failed firm’s customer funds, according to drafts of their statements reviewed by The Wall Street Journal.

MF Global staff to maintain Corzine defence
By Shahien Nasiripour in New York – Financial Times
Two top MF Global executives on Tuesday plan to join chief executive Jon Corzine in denying any knowledge of how an estimated $1.2bn in customer funds went missing during the failed brokerage’s frantic final days, according to prepared remarks.

MF Global Brokerage Trustee Giddens Outlines Rules for Customer Claims
MF Global Inc. will distribute the remaining 28 percent customers claim they’re owed by taking “traceable” assets and putting them in pools for different types of accounts, said James Giddens, a trustee for the liquidating brokerage.

MF Global Holdings Cash at JPMorgan Presumed to Be Company’s, Freeh Says
MF Global Holdings Ltd. ‘s $25.3 million in cash held at JPMorgan Chase & Co. (JPM) is presumed to be its own, the bankrupt company’s Chapter 11 trustee said in response to customer objections to its bid to use the money.

MF Global: Were The Risks Clear?
Robert Stammers – Forbes
The stunning and rapid collapse of MF Global Holdings Ltd (PINK: MFGLQ), a commodities and brokerage house turned trading company, serves as the latest reminder to investors that it’s important—and sometimes very difficult—to understand the entire spectrum of investment risk they’re exposed to.

The Talented Mr. Gensler 
I simply do not know where the money is,” Jon Corzine told Congress on Thursday. The man who led MF Global into bankruptcy claimed ignorance as to why more than $1.2 billion in client funds is still missing. But the former Democratic Senator and Governor did disclose some interesting details about his relationship with his primary regulator and former Goldman Sachs colleague, Gary Gensler. Mr. Gensler, chairman of the Commodity Futures Trading Commission, repeated several times at a hearing last week that it had been 14 years since they had worked together at Goldman.

CME to Customers: Drop Dead
Naked Capitalism
When I worked for Sumitomo Bank, I needed to buy a pricey book that catalogued the equipment in cotton spinning mills for a client (we’d been engaged to help him acquire a manufacturer, and he was interested only in certain types of machinery). I sent one of the guys in my department to get the expense approved by the General Affairs department (no approval, no reimbursement). For convenience, we’ll call the person I sent A and the General Affairs fellow Mr. Noh.

How Financial Reform Helped Destroy MF Global
Chalk up the destruction of MF Global to yet another unintended consequence of regulation.

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