The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter the morning of November 15, 2011.
In the wake of the MF Global bankruptcy, John Lothian Newsletter has created a special section on JohnLothianNewsletter.com devoted to news, information and commentary. The section features archived news stories featured in the John Lothian Newsletter, analysis and breaking news. Check regularly for updates. See the MF Global news section here.
Timing Questions Emerge on MF Global Cash
BY AARON LUCCHETTI AND SCOTT PATTERSON – WSJ
Hundreds of millions of dollars might have gone missing from customer accounts at MF Global Holdings Ltd. as far back as four days before the securities firm filed for bankruptcy protection, people familiar with the situation said Monday. The possibility of a shortfall in customer funds on Oct. 27 suggests problems might have emerged sooner than MF Global officials initially indicated to regulators and exchange operator CME Group Inc.
The MF Global Bankruptcy May Be As Close As Your Grain Elevator
How close are you to the bankruptcy filing of MF Global and the subsequent liquidation of its client accounts by the federal government? Based on its popularity with elevator managers for clearing grain hedging accounts through the Chicago Mercantile Exchange (CME), many Cornbelt farmers may be closer than they think to the 7th largest bankruptcy filing in US history.
UPDATE: MF Clients Accuse JP Morgan Of Overreaching In Bankruptcy
By Jacob Bunge Of DOW JONES NEWSWIRES
Former customers of MF Global Holdings Ltd. (MFGLQ) on Monday increased the clamor over money that has been trapped in the broker-dealer’s bankruptcy, now two weeks old. One newly formed coalition of customers pushed back against JP Morgan Chase & Co. (JPM), charging that the bank was trying to unfairly claim their assets in the court tussle over MF Global’s remains, while a group of U.S. brokers sought support for customers to be returned cash still frozen in accounts held by the firm.
Harris Bank subpoenaed, workers sue over MF Global
Reuters via Yahoo! News
(Reuters) – Fallout from MF Global Holdings Ltd’s bankruptcy intensified as a U.S. regulator subpoenaed a bank that held some of its customers’ money, while some of the 1,066 workers fired from the futures brokerage last week filed three lawsuits over their sudden dismissals.
MF Global and the Problems With Murky Accounting
New York Times
The collapse of MF Global, brought on by its exposure to $6.3 billion of European sovereign debt, shows how easy it is to obscure risky investments and the pitfalls that occur when those problems surface.
MF Global Seeks Permission To Settle $1.1B Shareholder Suit
By Jacqueline Palank Of DOW JONES DAILY BANKRUPTCY REVIEW
MF Global Holdings Ltd. (MFGLQ) is looking to settle a $1.1 billion lawsuit brought by shareholders over allegedly “glaring flaws” in the broker-dealer’s ability to manage its trading risk as it went public several years ago. MF Global asked the U.S. Bankruptcy Court in Manhattan to lift the shield of bankruptcy now blocking all litigation against it so it may go to a district court on Friday to settle the shareholder suit in a $90 million deal.
MF Signs Death Warrant for Short-Term Funding: William D. Cohan
People ask me all the time: How could Wall Street powerhouses such as Bear Stearns Cos., Lehman Brothers Holdings Inc. and Merrill Lynch & Co. disappear virtually overnight?
MF Global Staff File Lawsuit Claiming $25M In Damages
By Julie Steinberg – Dow Jones News Service
Two former employees of MF Global have filed a WARN (Worker Adjustment and Retraining Notification) class-action suit against MF Global Finance USA and MF Global Holdings Ltd. on behalf of themselves and 1,066 employees laid off from the U.S. broker-dealer last Friday.
Corzine’s fortune could invite more lawsuits
AP via Yahoo! News
The millions that Jon Corzine amassed as head of Goldman Sachs have become an alluring target for investors who were crushed by the collapse of MF Global, the brokerage firm he led until earlier this month.
Daniel Dicker: The Koch Brothers and MF Global – Friends to the End
The Huffington Post
The most stunning piece of news we’re getting in the wake of the MF Global collapse is in the clients of the firm who managed to get away scot-free, with no freezing of accounts or capital — particularly the accounts of the mega-cap independent oil company Koch Industries.
ICE Clear Canada Completes Transfer Of MF Global Canada Positions
IntercontinentalExchange (NYSE: ICE), a leading operator of global regulated futures exchanges, clearing houses and over-the-counter (OTC) markets, today announced that ICE Clear Canada has completed the transfer or closure of all MF Global Canada customer positions executed on ICE Futures Canada and held at the clearing house. The substantial majority of customer positions were transferred to alternative clearing participants at the request of customers, and the balance of open positions were closed by the clearing house. ICE Clear Canada remained fully collateralized throughout the process.