MF Global Told CME It Used Customer Funds

Bloomberg (h/t Ritholtz):

CME Group detailed its dealings with MF Global in documents released yesterday by the oversight panel of the House Financial Services Committee. Christine Serwinski, chief financial officer for North America at MF Global, and Edith O’Brien, a treasurer, told Mike Procajlo, an exchange auditor, at around 1 a.m. on Oct. 31 in Serwinski’s Chicago office that the customer money was transferred on Oct. 27 and Oct. 28 and possibly Oct. 26, according to a CME Group timeline.
“About $700 million was moved to the broker-dealer side of the business to meet liquidity issues in a series of transactions on Thursday, Friday and possibly Wednesday,” Serwinski and O’Brien told Procajlo hours before the firm filed for the eighth-largest bankruptcy following record quarterly losses and $6.3 billion in trades on European sovereign debt.
The timeline, the most detailed account yet of what may have happened to as much as $1.2 billion of missing customer money, was released as Jon Corzine, the firm’s former chairman, chief executive officer and architect of the European trades, faced his third congressional panel in the past week. The former senator and governor of New Jersey said he doesn’t know what happened to the money.

Crooks.  I'm still leaning toward failing broker loots customer cash to try to stave off failure.  I just can't believe Corzine didn't know what was going on.  I don't know who the whistleblower will be, but I think somebody will confess that he told them to do the looting.