New York, January 30 (FinanceEnquiry.com) - An estimated $1.2 billion of customer money was reported missing from MF Global Holdings Ltd after it collapsed nearly three months ago. Investigators hunting for the money have so far not been successful giving credence to the view that much of the money might never be recovered as it vanished into thin air as a result of chaotic trading at MF Global during the week before the company filed for bankruptcy protection on October 31.

So far, the intense probe being carried out by regulators, criminal and congressional investigators, and court-appointed trustees seems to suggest that some employees of MF Global might have been responsible for the disappearance of the missing funds. Officials believe that the money was withdrawn from customer-segregated accounts that were supposed to be kept separate by these employees, who used it to meet demands for more collateral or to unfreeze assets at banks and other counterparties, as they became more concerned about their financial exposure to MF Global.

The other possibilities being investigated include the possibility that steep losses were incurred by MF Global on investments made by them using customer money. It is also felt that much of the money going out of MF Global passed through J.P. Morgan Chase and other banks where the securities firm had accounts. However, the missing $1.2 billion in customer funds has not yet been traced.