MF Global Holdings Ltd. General Counsel Laurie Ferber first heard of a $952 million shortfall in MF Global Inc. customer segregated accounts in the afternoon of Sunday Oct. 30 according to written testimony she will deliver to a House subcommittee tommorrow. Ferber notes that she received an e-mail later that day suggesting the shortfall may have been much less and it was her impression up until late that evening that the reported shortfall from Friday Oct. 28 may have been a reconciliation discrepency.
Ferber also indicated that she twice had asked JP Morgan to narrow the language in a compliance certificate it requested from MF GLobal stating that past transfers of funds complied with segregation rules. By Saturday Oct. 29 she received a copy of the letter from JP Morgan she deemed satisfactory and turned it over to the MF Global legal department. There is no evidence that the document was ever signed.
Ferber also points out that here main role in the final days of MF GLobal was working on a possible sale.