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Investigators have located almost all the $1.2 billion first reported missing when securities company MF Global went under last year.

People briefed on the matter told the Associated Press the money has been tracked to other customer accounts and banks.

Investigators for financial regulators and trustees representing the company and its customers have been trying to track down the money. MF Global, headed by former New Jersey Gov. Jon Corzine, failed in October after a disastrous bet on European debt.

Brokerages are supposed to keep customer money separate from company funds. The people said the company misused the money to meet other financial needs as it collapsed.


Settlement in WaMu bankruptcy approved

WILMINGTON, DEL. | Investors in Washington Mutual will drop a lawsuit against the failed bank under a settlement approved by a Delaware judge.

Under the agreement approved Wednesday, investors will get a general unsecured claim of $9 million, a subordinated claim of $10 million and about 9 percent of the reorganized common stock in the bank if its latest reorganization plan is approved.

The investors argued they held warrants entitling them to cash recoveries if Washington Mutual won a lawsuit filed against the federal government 17 years ago, and thus held debt claims against the company.

But the judge ruled last month that the warrants allowed only an equity interest in Washington Mutual Inc., seriously reducing the investors’ potential recovery in bankruptcy.

• From wire dispatches and staff reports