Friday, December 02, 2011

Analysis: MF Global proves Enron-era accounting lives on

The sign marking the MF Global Holdings Ltd. offices at 52nd Street in midtown Manhattan is seen in New York November 2, 2011.  REUTERS/Shannon Stapleton

Thu Dec 1, 2011 5:09pm EST
Like its predecessors, the bankrupt brokerage formerly run by Jon Corzine took advantage of an accounting maneuver to keep certain financial obligations off its books, making the firm look less indebted and thus less a risk than it really was.
On Thursday, Mary Schapiro, chairman of the Securities and Exchange Commission, told a committee of Congress the SEC was investigating the accounting treatment that helped mask MF Global's exposure to risky foreign sovereign debt.


13 comments:

  1. MF Global Accounting, EU Bank State Aid, U.K. Loans: Compliance
    December 02, 2011, 12:59 AM EST,

    By Carla Main
    Dec. 2 (Bloomberg) -- An accounting technique used by MF Global Inc., the failed broker-dealer, is being reviewed by the U.S. Securities and Exchange Commission, agency Chairman Mary Schapiro said.


    http://www.businessweek.com/news/2011-12-02/mf-global-accounting-eu-bank-state-aid-u-k-loans-compliance.html

    ReplyDelete
  2. See the congressional committee hearings

    http://www.c-spanvideo.org/program/FGl

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  3. 1.2 billion USD gone missing from the fund. Where are they?

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  4. Former New Jersey Governor and Chief Executive Jon Corzine testified about the bankruptcy of the financial firm MF Global and a dispute over $1.2 billion in missing funds.

    http://www.c-spanvideo.org/program/MFGl

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  5. DECEMBER 15, 2011, 9:54 PMLEGAL/REGULATORY
    Corzine Denies Knowing That MF Global Was Tapping Client Funds

    http://dealbook.nytimes.com/2011/12/15/corzine-denies-knowing-mf-global-was-tapping-client-funds/?ref=business

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  6. The latest update as of December 23, 2011

    MF Global trustees in clash over funds


    http://www.ft.com/intl/cms/s/0/6b0bbe94-2d76-11e1-b985-00144feabdc0.html#axzz1hOeCu3i0

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  7. Update:

    DECEMBER 28, 2011, 9:04 PM INVESTMENT BANKING | LEGAL/REGULATORY

    MF Global Scrutinized on Money Move

    http://dealbook.nytimes.com/2011/12/28/mf-global-scrutinized-on-moving-of-money/?ref=business

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  8. January 6, 2012
    Chicago Breaking Business
    MF Global inquiry turns to CME, its primary regulator


    http://www.chicagotribune.com/business/breaking/chi-mf-global-inquiry-turns-to-cme-its-primary-regulator-20120106,0,6218113.story

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  9. This comment has been removed by the author.

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  10. In MF Global, JPMorgan again at center of a financial failure

    By Carrick Mollenkamp, Lauren Tara LaCapra and Matthew Goldstein

    Thu Jan 19, 2012 10:18am EST

    (Reuters) - In late October, as MF Global Holdings Ltd teetered toward bankruptcy, Jon Corzine phoned his close-knit circle of Wall Street friends for help.

    His firm, facing demands from customers and other firms for cash, needed to sell billions of dollars in securities to raise the money. As the week progressed, MF Global executives came to believe that JPMorgan Chase & Co., one of MF Global's primary bankers and a middleman moving that cash, was dragging its feet in forwarding the funds.

    Source:http://www.reuters.com/article/2012/01/19/us-mfglobal-jpmorgan-idUSTRE80I02520120119

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  11. MF Global: Uncertain futures
    January 26, 2012 7:17 pm

    The question is how can regulation now be tightened.

    "Ultimately, a quick fix looks un­likely. “Trust has been completely shaken and it’ll be a long, slow, hard climb back,” says the futures broker’s head. “When farmers and small-town banks don’t trust us, we need to take a long look in the mirror.”




    Source: http://www.ft.com/intl/cms/s/0/02ec3d4e-475b-11e1-b646-00144feabdc0.html#axzz1kdwm7bP8

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  12. Building Chaos at MF Global

    http://blogs.wsj.com/deals/2012/03/01/building-chaos-at-mf-global/?mod=google_news_blog

    March 2, 2012

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  13. MF Global's Collapse: 30 Shocking Numbers

    If you haven't read the series, the 30 numbers below sum up one of the most extraordinary episodes in the history of the financial markets:

    http://www.fool.com/investing/general/2012/02/29/mf-globals-collapse-30-shocking-numbers.aspx

    ReplyDelete