MF Global records $141.5 million bad-debt provision
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Thu, 28 Feb 2008 18:36:07 GMT |
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Reuters |
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US (Business) |
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(Reuters) - Broker MF Global said it recorded a bad-debt provision of about $141.5 million after one of its representatives, trading in the wheat futures market, substantially exceeded his authorized trading limit.Shares of the broker of exchange-listed futures and options fell more than 17 percent to $24.13 in early morning trade on the New York Stock Exchange.A failure in one of the company's retail order entry systems allowed the representative to establish significant positions in his own account which were sold later on Wednesday, the company said in a statement.The registered representative concerned has been terminated effective immediately.MF Global has engaged a third-party risk technology consultant to review its relevant order entry systems.Client funds are not at all impacted by the unauthorized activity, the company said.(Reporting by Sweta Singh; Editing by Pratish Narayanan) (c) Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.
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