MF Global trustee says at least $1.6 billion missing

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The court-appointed trustee overseeing MF Global’s liquidation says an additional $400 million is missing from customer accounts, bringing the total to a least $1.6 billion.

The trustee, James Giddens, said in a statement Friday that the new estimate was based on his investigation and it could change again. Giddens has been combing through the accounts of MF Global, which was headed by former New Jersey Gov. Jon Corzine, since it filed for bankruptcy protection on Oct. 31.

Giddens says most of the cash transactions in the last week before the bankruptcy filing have been traced. Regulators are investigating whether MF Global tapped money from clients’ accounts as its financial condition worsened. That would violate securities laws.

Giddens has returned about $3.9 billion to customers.