MF Global Sold Assets To Goldman Prior To Collapse

MF Global unloaded securities worth hundreds of millions of dollars to Goldman Sachs in the days leading up to its collapse, according to two former MF Global employees with direct knowledge of the transactions.

One of the sources said, MF Global did not immediately receive payment from its clearing firm and lender, JPMorgan Chase & Co (JPM.N).

The ex-employees said the sale of securities to Goldman occurred on October 27, just days before MF Global Holdings Ltd (MFGLQ.PK) filed for bankruptcy on October 31. The former employees said it is unclear what type of assets Goldman bought from MF Global, but the securities were worth hundreds of millions of dollars.