MF Global exec raised concerns about customer funds
Christine Serwinski, who was the firm's chief financial officer for North America, says in testimony prepared for a congressional hearing Wednesday that she learned Oct. 27 of a "substantial deficit" in the cash kept by the firm in customer accounts as a cushion against potential losses.
Serwinski says the deficit didn't violate rules but made her uncomfortable.
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Serwinski says she asked colleagues about it and they assured her the situation was "under control." Regulators weren't informed of a shortfall in customer money until Oct. 30.
MF Global filed for bankruptcy protection Oct. 31. About $1.6 billion of customers' money is still missing.
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