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)
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