The Trade That Killed MF Global
We now have a lot more details about the European debt trade that destroyed MF Global. What’s clear is that Jon Corzine’s firm was not shooting for the moon with some high-risk trade. Instead, it was taking what it viewed as a…
It’s not the bet that’s the problem, it’s that they bet with client money, not the firm’s money. That’s criminal. Here’s my view on that and why I’ve issued a Jackass Investing “Poor-folio” Award to both Jon Corzine and Craig Donohue, head of CME Group:http://www.jackassinvesting.com/wblog/blog.php
great article, and the problem with clearing houses being responsible for customer’s money is not new. They initially made that pool the one-way street, i.e. for their own benefits. BTW, if you look at CFTC publications going years back, you’ll find many similar ‘cases’ provided the companies were fully aware of what they were doing with so-called ‘segregated accounts’. It’s a scale and publicity that made impossible for the MF Global to hide the loss or get away with it. And the day is still young…I would not keep my breath…
crime is in between Madoff and Rajaratnam in severity so lets see if there is any jail time or his political connections help him out.
I agree with the comments on the CNBC site. The article simply doesn’t make sense and is badly written by a journalist who doesn’t get it.
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