. >> reporter: before corzine spoke, james kobak, the bankruptcy trustee charged with finding the missing money, said some of it might have found its way into risky investments overseas. >> at this point, i would say we have suspicions, but we really don't have knowledge. >> reporter: but kobak says it is hard to say what happened during m.f. global's last days, because thousands of transactions in the chaos leading up to the firm's bankruptcy have left the books in a mess. corzine said he was not an expert in financial bookkeeping, but thought the records were in order until the very end. >> my understanding is that... that our books and records were reflecting the chaos that occurred in the last two or three days as the firm was under severe pressure and had lost the confidence of the marketplace. >> reporter: the m.f. global trustee hopes that the firm's 36,000 customers will get roughly 70% of their money back, though he says it is still too early to tell for sure. darren gersh, "nightly business report," washington. >> tom: jacob frenkel used to be an enforcement lawyer with the secu

kobak come have a look at the auditors or look at the credit rating agencies? heavily to any of the other entities with a presumption in at some point you're going to have to go at everybody to try to get money from any place you can that is due to this company. have you started looking at them? >> step one has been to look at the accounts to see the content like what the transactions were. i think as mr. corzine was suggesting today, another part of that is probably looking at money that should've been coming in to see whether it all got there. that's what we've been concentrating on today. we certainly will do the others. >> mr. baxter, to know if the fed has been looking at any entities on the other side of these agreements? >> you know, ranking member, that i can't talk about specific regulated institutions. but the answer to your question generically as we were looking at certain institutions, banking institutions before the before e bankruptcy and will continue to look at them after the bankruptcy. >> i will take eventually i myself will want to go to to

kobak how many accounts were affected? >> our best numbers approximately 36,000. >> how many of those accounts are commodity accounts? >> i'm talking about commodity accounts. about three or 400 active securities accounts on a broker-dealer side of the business. >> how many accounts have been transferred to a different futures commission merchant? >> when we will have completed, assuming the court approves the transfer tomorrow, we expect that substantially all accounts should move. there are a number of very small accounts. i'm talking about accounts with less than $1000. many times just 100 or $200 that may not have been a good active accounts for a long time. it may not be possible to find other fcm's to take those so we may try to expedite the resolution of those claims in the claims process. but other than that virtually all accounts should get to another fcm with something was something like two-thirds of the value of their domestic positions. >> and the transfer has to be reviewed by the trustee? >> well, we have to

kobak, any comment? >> i would support it is very complex. you also have to understand it in the early days of one of these proceedings, one may not have perfect access to books and records. sometimes depositories turn off screens, did not allow access. sometimes system vendors threatened to shut off systems. in our case, we had some issues with the holding company about getting access to documents that both of us had an interest in./ in addition to the sheer scale, there are days where we need to get into the systems and records to review. >> thank you. >> the chair will call from the gentlemen of illinois. you are recognized for five minutes. >> thank you. but i just have a couple of questions for mr. kobak. i wonder to what extent the u.s. department of treasury is involved? >> i am not aware of it. i know there are some u.s. attorneys as well as the cftc and sec. >> you don't know if they're tracking funds domestically or internationally? but if not as far as i know. -- >> not as far as i know. >> i wonder if they have released the money

kobak. both you and mr. giddens in your previous testimony idly stated that no matter the exact size of the shortfall, speaking of segregated funds, it's probable size, significant and will substantially affect the trustee's ability to make a 100% distribution to former mf global customers. is that still your opinion today? >> good. and thank you for the yes or no answers but they are very rare around here, we really do appreciate it. i know that you do not want to speculate why you're investing is still underway, but they saw mr. duffy's testimony and other reports it seems highly probable that customer funds were transferred out of segregated accounts and co-mingled with mf own funds to out of him understand that at this point. probably to meet margin calls on your positions. i mean, is that -- [inaudible] >> okay. assumed for the moment that is, in fact, what happened. it would mean that the missing customer funds will never be found and some overlooked or, had been hoped for but many customers when they

kobak i would like to start with you.he sake of discussion i also realized as a bankruptcy trustee were collecting information on all creditors. is that a fair assumption? >> our primary emphasis is both on the security and commodity side but we certainly -- >> for the sake of discussion all customers and i'm not suggesting they camp out for the sake of this discussion let's assume you get to 100% productive customers are paid was the largest creditor you to your knowledge at the moment? >> i believe the largest creditors probably jpmorgan. they were creditor of the holding company. >> do you have any idea and again -- >> i know they are a very large revolving loan. i know they were declaring bank. >> 500 million, a billion? >> hundreds of millions. >> so it's a regulated bank of the other end and the reason i ask is when everything is said and done where the collateral might have come from during that time, but the final analysis somebody had to loan money to get to a 30 or 40 to one ratio and it appears from the cursory