MF Global UPDATEDx3

The collapse of MF Global was seen days ago by the ever vigilant Ann Barnhardt as we show in our first report in the post below.

Last night Ann reported that customer money was missing. Today's news reports the missing funds is in the range of $700-$900 million.

No, our Dear Leader has not yet come out and announced a bailout for MF Global customers. But it's early.

Karl at Market-Ticker screams "STOP THE LOOTING AND START PROSECUTING!" in his post today, Can You Survive It Being Over?

The obvious questions that this little "incident" raises are too many to count but at their core go straight to the credibility of our entire financial system. None of them are pretty.

Here is how one MSM outlet is re-phrasing the concept of theft:

The discovery that money could not be located might simply reflect sloppy internal controls at MF Global. It is still unclear where the money went. At first, as much as $950 million was believed to be missing, but as the firm sorted through its bankruptcy, that figure fell to less than $700 million by late Monday, the people briefed on the matter said. Additional funds are expected to trickle in over the coming days.

But the investigation, which is in its earliest stages, may uncover something more intentional and troubling.

Shameful.

Nobody can call a former Democrat governor a thief?

Since the missing customer funds are less than one billion dollars, this is just a series of clerical errors?

Since some funds will "trickle in over the coming days" it is too soon to say MF Global, and specifically Jon Corzine, stole money from their customers and evaded regulations that we were told would eliminate this form of theft?

We think these executives, and their defenders in the media, would be in harms way if the public were to realize this bankruptcy's contribution to the deterioration of trust in America's banks and government oversight capabilities, and thus the end of America's economic stability.

We'll add updates here when they are warranted.

UPDATED 10pm

A little over 24 hours after the news broke of MF Global's demise - and about a fortnight since Ann Barnhardt broke the story - the FBI is now investigating the use of client funds.

You know, the funds Democrat Corzine was not supposed to use in his investments.

And by "not supposed" we mean the law prohibited him from touching these funds.

And by "touching" we are referring to the missing $700 million.

AP story posted at Daily Finance - FBI to probe MF Global's use of Client Money

Some have asked, "what happens if those with accounts at similar agencies with similar 'stringent' government oversight decide to pull their funds due to a lack of trust? Some have answered too.

UPDATED 11.3 10:10am

This morning's WSJ said the missing funds are about $600 million. Ann's posts from late last night suggest it is closer to $1.5 billion. Anybody want to guess who is closer: the massive Wall Street Journal with all its resources sitting in the heart of the US economy, or little ol Ann out there in Colorado somewhere?

Ann explains that this money is gone. There is no authority to turn to for help, nor is there any entity capable of deterring other firms from doing the same to their customers. Ann explains it has to do with the rule of law and the fact that the United States no longer respects the rule of law.

She has two posts with the title WROL (without the rule of law). Key quotes:

There WAS a law. There WAS a very, very strict law. WAS. Past tense. What we are seeing right now is what every single culture that has been conquered by Marxists has experienced: the elimination of the Rule of Law. This nation is no longer a nation of laws. It is a nation of men. The law no longer matters. All that matters is who you are and who you know. Jon Corzine is part of the Marxist-Obamaist cabal, and therefore laws do not apply to him.

Further, the government that you, up until now, have turned to in order to enforce the Rule of Law is now itself the entity that is stealing from you. In other words, there is absolutely NO ONE to turn to for law enforcement because the is no Rule of Law.
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If you haven't purchased long guns and ammunition, freeze dried food, water and fuel, you better be getting about that with a quickness.

There you have it.

MF Global has generated a lot of news, it is the news we haven't heard. To divert/steal $600mm-$1.5b takes more than a former Democrat governor from New Jersey.

Oh to be a fly on the wall of the attorney's offices where MF Global's former executives are fleeing to tell their stories and draft their requests for immunity.

UPDATED 11.4 2:40pm

Democrat Jon Corzine has resigned and walked away from MF Global and his $12.1m golden parachute.

Doug writing at Michelle Malkin's site:

The New York Times reports that Corzine has hired a white-collar criminal defense attorney — standard operating procedure if you were the head of a securities company that misplaced a few hundred million dollars and diverted client money.