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How long -- MF gold on the brink many longer than you think.
-- Charlie Gasparino is here with the latest well I mean to conventional wisdom is d.s before the implosion of the bankruptcy filing on October 31 that there was.
You know cash -- -- money problems maybe that's where the 600 million dollars went to cover margin calls which is essentially money have to put up when you borrow.
You borrow funds from the outside.
It's something you just him we're hearing from employees these are employees that are talking to attorneys recently laid off they want some money out of this things are they going to turn to probably -- -- And here's what they're saying the money issues and we're gonna describe define would issues -- -- began weeks before the implosion.
Not date of this is according to former employees of Fox Business Network has -- They're basically saying and these -- brokers that they -- -- that that the firm which held commissions to their brokers.
As a delete or as early anyway want to put it as two weeks before the bankruptcy pretty interest and that means there's money issues.
Two weeks before the bankruptcy a -- according to these employees what they said -- afterwards when they were finally paid.
And this was just days before the implosion they're saying they were paid.
Abnormally large commissions.
One person said in the range of something like 250000 dollars which was more than then this person was that -- it was owed.
And that MF global came back and basically said give that money back in the days before the did the bankruptcy so this is what we know I mean -- is using just think guys.
I can't draw any more conclusions out of this then simply that MF global was one screwed up place and the screw ups began.
Not in the frenzied before -- least according to these people.
We do have a -- to MF global they have no comment as of right now right so spoke with their attorney mark has what's who's handling legal Madison MBS no comments and he said he hasn't heard of this.
It's this but these are what employees are telling the lawyers.
And it really -- show that this was 11 screwed up place.
Well before the bankruptcy maybe the bankruptcy uncovered just how screwed up it is obviously these are anecdotal anecdotes and it's you know sometimes unfair to draw.
Broad conclusions out of anecdotes.
But geez if you're not getting paid if you if you're not getting paid commissions when -- supposed to get paid if they're too large when you get paid the company has -- back well that's all true.
And this is a real problem and here's a -- -- compliance.
They do not have the compliant systems in place.
That in of itself.
It's probably a violation of sarbanes Oxley forget about whether the money to stolen in the various -- there's a real problem here Jon Corzine the CEO of of of former -- -- of global.
Really does has have a big promise and because it's the CEOs responsibility.
Make sure those compliant systems are in place -- Standing say how does a corporate bankruptcy unfold.
Well if I don't every case is different you know Lehman Brothers decided overnight.
Explosion like Lehman Brothers well -- here's a video -- technically insolvent.
-- -- -- You're you have negative net worth -- -- a good negative equity because you owe more than your stock price is worth.
I guess what people stop -- stop lending you money.
And then you're done.
And you know you clients won't deal with -- people won't lend you money to complete trades.
And -- finished unless there's someone is gonna buy you.
Which didn't happen here yet to file for chapter seven to re -- -- -- -- and eventually chapter seven and that's kind of where they're going to they're still in Chapter Eleven but they are liquidating.
But then there's a whole back story of how they got there.
The investigations include whether they.
Properly -- -- you know was telling quintet whether Jon Corzine is senior management team were hiding some of the bad stuff from the market in the weeks leading up to would these employees.
In other started provide evidence that if this is true that there was stuff bad stuff going on why.
While they were saying -- -- -- something else also where's the 600 million dollars from the 600 million dollars missing -- where -- -- and know why is it missing.
Is a missing for real nefarious means or some of solar or is a missing because they didn't have the controls in place.
Not a good thing by the way that might be a violation of law in itself or -- simple explanation -- this.
Which renders the legal stuff moved I can't tell you I just tell you.
Some of the stuff surrounding it is not a how many Lynn you know maybe they get the -- ya wanna ask you John for every one of their fifth -- -- pick up.
-- -- Charlie -- and analysts also tonight thanks.
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