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MF Global’s Missing $1.2 Billion Probably Just ‘Vaporized’

Jon Corzine, former CEO of MF Global, testifies before the House Agriculture Committee about the bankruptcy of MF Global on Capitol Hill in Washington, DC, December 8, 2011.  In prepared testimony, Corzine -- once US senator, the governor of New Jersey, the head of Goldman Sachs and later MF Global -- apologized to investors and claims he cannot account for the loss of "many hundreds of millions of dollars." "I simply do not know where the money is, or why the accounts have not been reconciled to date," he said in the remarks.  Around $1.2 billion appears to be missing from the customer accounts of failed US broker, a liquidator of the company has said.    AFP PHOTO / Saul LOEB (Photo credit should read SAUL LOEB/AFP/Getty Images) Corzine.

The bankrupt brokerage firm MF Global still can't account for some $1.2 billion in customer funds, but an ongoing investigation imagines that a "significant amount" of the money "vaporized" during the company's crashing and burning, The Wall Street Journal reports. Although it's probably not coming back, speculation persists about where exactly the money ended up, with a few hundred millions apparently going (against securities rules) to JPMorgan Chase, and a lot potentially lost on bad investment bets on European debt.

Following ex-CEO Jon Corzine's time in the congressional hot seat, lawmakers will look into the role of ratings companies in the massive failure beginning February 2. A week before, the firm filed the eighth-biggest bankruptcy in U.S. history, CFO Henri Steenkamp told Standard & Poor's via e-mail, "MF Global is in its strongest position ever."

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Photo: Saul Loeb/AFP/Getty Images