NEW YORK (AP) – MF Global says a rogue trader rang up $141.5 million in losses in the broker's own account.
The New York-based company says a wheat trader was able to conduct unauthorized trades on Wednesday because of a failure in the entry-order system the broker used to vet trades. The trader was fired immediately.
MF Global clears its own trades, meaning it is responsible for $141.5 million in losses. The company said its clients' money is not threatened.
MF Global hired a technology consultant to examine the system, which it says should have blocked the unauthorized trades.
The discovery comes a month after French bank Societe Generale revealed that a rogue trader rang up more than $7 billion in losses on his company's account by allegedly placing unauthorized bets on European stock indexes.
Copyright 2008 The Associated Press.