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Report: Criminal Prosecutions for MF Global Failure Unlikely

HeadlineAug 16, 2012

A federal probe into the failed commodities and derivatives brokerage house MF Global is unlikely to result in any criminal prosecutions of top executives. MF Global filed for one of the largest bankruptcies in U.S. corporate history last year with almost $40 billion in liabilities. It was the largest failure on Wall Street since the collapse of Lehman Brothers in 2008. Regulators later discovered up to $1.2 billion in customer funds that should have been kept segregated were missing. But the New York Times reports federal investigators have concluded that the losses were due to mistakes rather than fraud. Former New Jersey governor and U.S. Senator Jon Corzine, who headed MF Global, would be among those to evade prosecution.

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