The search for the missing $600 million from MF Global continues.
The latest development shows that finding the location of the missing customer money might begin with Chicago-based Harris Bank, Reuters reported.
A Harris Bank branch office in downtown Chicago was the main repository for money from many of MF Global’s 150,000 customers, according to customers and representatives with smaller investment firms that introduced clients to the New York-based brokerage.
Harris Bank, a division of the Bank of Montreal , is emerging as a starting point in the investigation by federal authorities, who are trying to determine what happened to more than $600 million in MF Global customer money that remains unaccounted for eight days after the firm collapsed in bankruptcy.
According to the Reuters report, investigators are looking to see what happened to the money that was being held in segregated accounts (used by brokers that’s separate from the firm’s accounts) at Harris Bank, which often holds client funds from many large future brokerage firms.
Last week, it was previously reported that a JPMorgan account had the missing MF Global client money. JPMorgan came out and denied those claims.