Skip navigation
#headerOverlay{
color: #ccd6df;
font-size:11px;
line-height:130%;
}
#headerOverlay strong{
color: #ffd226;
}
#headerOverlay a {color:#ccd6df;text-decoration:none;}
#headerOverlay a:hover {color:#ffd226;}
#headerOverlay a:visited {color:#ccd6df;}
#headerOverlay a:visited:hover {color:#ffd226;}
Symbol Lookup
onloadAutoSuggest();
var pgValue = "CNBSEB";
var cmsKeyWord = "alternative investing";
var cmsNewPG = "CNBWAB";
if ((cmsKeyWord.length > 0) && (cmsNewPG.length > 0)) { var newPG = cmsNewPG.split(';'); var group = cmsKeyWord.split(';');
if (newPG.length == group.length) { var description = cnbc_pagedesc.toLowerCase();
for(var x = 0; x < group.length; x++) { var keyWord = group[x].split('|'); for (var j = 0; j < keyWord.length; j++) {
if (description.indexOf(keyWord[j].toLowerCase()) != -1) { pgValue = newPG[x]; j = keyWord.length; x = group.length; }}}}}
if (cnbc_DARTFlag=="new")
{
cnbc_DARTAdCall(88,31,pgValue);
} else {
dapMgr.enableACB("SearchBox88x31",false);
dapMgr.renderAd("SearchBox88x31","&PG=" + pgValue + "&AP=1071&PN=CNBC",88,31);
}
cnbc_displayUsername("cnbc_usertime","cnbc_username");RegisterSign InMember CenterSign OutRegistercnbc_toggleUserState();HOMENEWSMARKETSEARNINGSINVESTINGSMALL BUSINESSVIDEOCNBC TVCNBC PROU.S.Asia-PacificEuropeEconomyEnergyPoliticsTechnologyBlogsSlideshowsSpecial Reports
if (cnbc_DARTFlag=="new")
{
cnbc_DARTAdCall(728,90,"CNBGE7");
} else {
dapMgr.enableACB("USNewsBlogs728",false);
dapMgr.renderAd("USNewsBlogs728","&PG=CNBGE7&AP=1390&PN=CNBC",728,90);
}
NetOccupationally Hazardous.
var cnbcSubHeaderId = document.getElementById('subheader_'+ 38911124);
cnbcSubHeaderId.innerHTML = document.getElementById('renderReaderContent').innerHTML;
Current DateTime: 10:33:18 13 Dec 2011LinksList Documentid: 45166246Central Banks to the Rescue? What Their Action Means
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45492184", "45166246_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45492184", "45166246_1","cnbcCommentsTxt" );
Where in the World Is Jon Corzine?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45508369", "45166246_2","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45508369", "45166246_2","cnbcCommentsTxt" );
Is Germany in Trouble?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45416018", "45166246_3","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45416018", "45166246_3","cnbcCommentsTxt" );
How High Should Taxes Get on the Wealthy?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45402737", "45166246_4","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45402737", "45166246_4","cnbcCommentsTxt" );
Has the Bank Run Begun in Europe?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45417735", "45166246_5","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45417735", "45166246_5","cnbcCommentsTxt" );
Five Reasons for Investors to Head for the Sidelines
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45356877", "45166246_6","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45356877", "45166246_6","cnbcCommentsTxt" );
Are Traders Cheering For the Market to Go Down?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("44775219", "45166246_7","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("44775219", "45166246_7","cnbcCommentsTxt" );
The Fed Wants to Be Your Facebook Friend
cnbc_commentCountMapObj.cnbc_commentCountMap_put("44701381", "45166246_8","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("44701381", "45166246_8","cnbcCommentsTxt" );
MF Global's Bad Check
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45404102", "45166246_9","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45404102", "45166246_9","cnbcCommentsTxt" );
Translating Bill Gross: The Debt Trap
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45106677", "45166246_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45106677", "45166246_10","cnbcCommentsTxt" );
if (cnbc_DARTFlag=="new")
{
cnbc_DARTAdCall(300,900,"CNBGE3");
} else {
dapMgr.enableACB("USNewsBlogs300x250",false);
dapMgr.renderAd("USNewsBlogs300x250","&PG=CNBGE3&AP=&PN=CNBC",300,900);
}
Current DateTime: 11:03:51 13 Dec 2011LinksList Documentid: 38910464Expiration DateTime: 12/13/2011 11:06:44 PM
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910464_1","cnbcCommentsTxt" );
A Radical Solution for Europe's Debt Problem
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45658896", "38910464_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45658896", "38910464_1","cnbcCommentsTxt" );
Do Republicans Care About Budget Deficits?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45658543", "38910464_2","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45658543", "38910464_2","cnbcCommentsTxt" );
Was There a Madoff Inside of MF Global?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45657124", "38910464_3","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45657124", "38910464_3","cnbcCommentsTxt" );
Job Prospects Improve for MBA Grads, Just Remember That Visa
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45656895", "38910464_4","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45656895", "38910464_4","cnbcCommentsTxt" );
CBO Deals (Slight) Blow to Financial Transaction Tax
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45655791", "38910464_5","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45655791", "38910464_5","cnbcCommentsTxt" );
Merchant Group: Credit Card Study Deeply Flawed
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45653902", "38910464_6","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45653902", "38910464_6","cnbcCommentsTxt" );
How Financial Reform Helped Destroy MF Global
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45645005", "38910464_7","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45645005", "38910464_7","cnbcCommentsTxt" );
Do We Have Too Much Financial Stability?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45643768", "38910464_8","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45643768", "38910464_8","cnbcCommentsTxt" );
In Twitter We Trust?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45643376", "38910464_9","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45643376", "38910464_9","cnbcCommentsTxt" );
Jon Corzine: The T-Shirt
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45641247", "38910464_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45641247", "38910464_10","cnbcCommentsTxt" );
Why Europe Has Investors Running Scared"”Again
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45642039", "38910464_11","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45642039", "38910464_11","cnbcCommentsTxt" );
Burning the European Oil
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45640794", "38910464_12","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45640794", "38910464_12","cnbcCommentsTxt" );
Europe's Central Bankers Blind to Imminent Disaster
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45640104", "38910464_13","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45640104", "38910464_13","cnbcCommentsTxt" );
Matthew Slaughter: We need One Institution as a Systemic Regulator "” Not Ten
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45640105", "38910464_14","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45640105", "38910464_14","cnbcCommentsTxt" );
Why Do Banks Fail Together In A Crisis?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45615762", "38910464_15","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45615762", "38910464_15","cnbcCommentsTxt" );
Is Buffett Giving Silent Treatment to Anti-Berkshire Analyst?
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45615619", "38910464_16","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45615619", "38910464_16","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910464_1","cnbcCommentsTxt" );
Email: document.write("");document.write("NetNet"+"@"+"cnbc.com");document.write('');Call: 201-735-iNet (4638)Text Message: Text NETNET followed by your tip to 26221. Current DateTime: 10:33:18 13 Dec 2011LinksList Documentid: 39085620FacebookTwitterRSSCurrent DateTime: 10:33:18 13 Dec 2011LinksList Documentid: 38852222John Carney
Runs this joint.
Cadie Thompson
Really, really runs this joint.
Jeff Cox
A senior writer for CNBC.com, covering the gamut of issues affecting the stock market and the economy.
Stephanie Landsman
Squawk Boxer Rebel.
Lori Spechler
A Senior Editor at CNBC, commodity trader in a former life.
Lori Ann LaRocco
A Senior Talent Producer at CNBC.
Current DateTime: 10:33:18 13 Dec 2011LinksList Documentid: 43730562The Faces of 'Occupy Wall Street'
Occupy Wall Street has attracted people from all backgrounds.
The Greatest Trades of All Time
The following list of people showcases some of the greatest trades in the business.
Rogue Trading: A How-To Guide
There's a surprisingly consistent pattern to all these rogue traders.
25 Things Every Wall Street Intern Should Know
Some words of wisdom for all the Wall Street Interns this summer.
Current DateTime: 11:03:51 13 Dec 2011LinksList Documentid: 38910635Expiration DateTime: 12/13/2011 11:06:35 PM
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910635_1","cnbcCommentsTxt" );
FTSE, CAC 40, DAX to Open Lower; Fed Disappoints
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45664330", "38910635_1","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45664330", "38910635_1","cnbcCommentsTxt" );
Most Economists Expect Another Global Recession
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45662343", "38910635_2","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45662343", "38910635_2","cnbcCommentsTxt" );
Markets Watch OPEC, but EU Debt Worries Persist
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45659768", "38910635_3","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45659768", "38910635_3","cnbcCommentsTxt" );
Gingrich Surges to Wide Lead Over Romney: NBC Poll
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45660982", "38910635_4","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45660982", "38910635_4","cnbcCommentsTxt" );
Olympus Ex-CEO Hopes to Avoid Shareholder Fight
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45664363", "38910635_5","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45664363", "38910635_5","cnbcCommentsTxt" );
House Defies Obama, Passes Payroll Tax Bill
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45661648", "38910635_6","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45661648", "38910635_6","cnbcCommentsTxt" );
China Postpones Bank Capital Adequacy Rules
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45662966", "38910635_7","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45662966", "38910635_7","cnbcCommentsTxt" );
Realtors: We've Overcounted US Home Sales for Years
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45659547", "38910635_8","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45659547", "38910635_8","cnbcCommentsTxt" );
Analyst Rates Zynga 'Sell' "” Even Before the Firm's IPO
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45655436", "38910635_9","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("45655436", "38910635_9","cnbcCommentsTxt" );
Rio Tinto Moves Closer to Taking Over Ivanhoe
cnbc_commentCountMapObj.cnbc_commentCountMap_put("44885717", "38910635_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("44885717", "38910635_10","cnbcCommentsTxt" );
cnbc_commentCountMapObj.cnbc_commentCountMap_put("", "38910635_1","cnbcCommentsTxt" );
» HelpCurrent DateTime: 10:33:18 13 Dec 2011LinksList Documentid: 38851925Subscribe to this RSS feed
Stay up to date with NetNet.
setDefault('cnbc_textbody');Was There a Madoff Inside of MF Global? Published:
Tuesday, 13 Dec 2011 | 2:31 PM ET Text Size By: John CarneySenior Editor, CNBC.com
#divButtons .gig-button-container-facebook-like {margin-right:-2px;}
#divButtons .gig-button-container-twitter {margin-right:15px;}
#divButtons .gig-button-container-google-plusone {margin-right:-16px;}
#divButtons .gig-button-container-linkedin {margin-right:17px;}
var params ={
userAction:ua,
shareButtons: [{provider:'facebook-like',action:'recommend'},{provider:'twitter'},{provider:'google-plusone'},{provider:'linkedin'},{provider:'share',enableCount:false}],
containerID: 'divButtons'}
gigya.services.socialize.showShareBarUI(conf,params);
Getty ImagesThere's a new theory floating around Wall Street about the money missing from customer accounts at MF Global: it was Madoff-ed.
According to a top executive at a larger Wall Street firm, his top guys believe that the money didn't go anywhere. It just never existed.
The idea is that the "missing" funds were phony trading profits that
Really, really runs this joint.
A senior writer for CNBC.com, covering the gamut of issues affecting the stock market and the economy.
Squawk Boxer Rebel.
A Senior Editor at CNBC, commodity trader in a former life.
A Senior Talent Producer at CNBC.
Occupy Wall Street has attracted people from all backgrounds.
The following list of people showcases some of the greatest trades in the business.
There's a surprisingly consistent pattern to all these rogue traders.
Some words of wisdom for all the Wall Street Interns this summer.
Stay up to date with NetNet.
Getty ImagesThere's a new theory floating around Wall Street about the money missing from customer accounts at MF Global: it was Madoff-ed.
According to a top executive at a larger Wall Street firm, his top guys believe that the money didn't go anywhere. It just never existed.
The idea is that the "missing" funds were phony trading profits that were booked in client accounts even though the underlying trades never really occurred. MF Global may have reported to clients that they had made profits for trades that never actually occurred.
This was how Bernard Madoff's scam worked. He told clients that they had gains based on investments that he never actually made. He just pocketed the money, using it to fund his elaborate lifestyle.
Why would MF Global fake trades?
RELATED LINKSCurrent DateTime: 10:33:18 13 Dec 2011LinksList Documentid: 45657125How Financial Reform Helped Destroy MF GlobalJon Corzine: The T-ShirtA Romance With Risk That Brought On a Panic
The answer might be quite simple. The firm was in dire financial straits. It may have felt pressure to keep customers on board by showing how ably the firm managed their money. A scheme like this need not involve the entire firm"”or even the senior management. If this is indeed what happened, a small group of rogue traders at MF Global may have been able to carry off the rouse for quite some time. Perhaps perpetually"”if not for the bankruptcy at MF Global.
"Maybe there's a mini-Madoff inside of MF Global. A guy who just faked the trades," the executive speculated.
As Warren Buffett says, when the tide goes out, you see who is swimming naked. Could this be a case of naked traders who doctored phony profits for their customers?
Some people I've talked with are skeptical about this theory. It seems incredible to imagine that a scheme like this could grow to involve as much as $1.2 billion.
There's no public evidence to support anything like this. Right now it's just a theory. But it's a theory that at least begins to explain what happened to the money of MF Global's customers.
Questions? Comments? Email us at document.write("NetNet"+"@"+"cnbc.com");document.write('');
Follow John on Twitter @ twitter.com/Carney
Follow NetNet on Twitter @ twitter.com/CNBCnetnet
Facebook us @ www.facebook.com/NetNetCNBC
Read Full Article »
