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    MF Global Dipped Into Clients’ Money

    Image #: 15838132    epa02988126 A view of a sign for the financial firm MF Global at one of the company's offices in New York, New York, USA, on 01 November 2011. MF Global Holdings Ltd, a broker-dealer firm, and its finance unit, MF Global Finance USA, on 31 October filed for reorganization under US bankruptcy law after losing its bets on European sovereign debt. The MF Global Holdings bankruptcy is the first large victim on Wall Street of the roiling euro debt crisis. In Europe earlier in October, the  Belgian-Franco-Luxembourg bank Dexia sought rescue by the Belgian government, pending final clearance from European Union antitrust regulators.  EPA/JUSTIN LANE /LANDOV

    Justin Lane, EPA / Landov

    A federal official said Tuesday that MF Global—the securities firm founded by former New Jersey governor Jon Corzine that filed for bankruptcy Monday—had used clients’ money while their financial troubles grew. Government rules insist client money and company money be kept separate by securities firms. Whether or not MF Global will face criminal charges for this alleged misuse of funds, however, is unclear. MF Global filed for bankruptcy Monday, the first firm to fail due to the spiraling European debt crisis.

    Read it at Associated Press