The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter (subscribe here) the morning of November 18, 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.
MF Global customers to get long-sought $520 million
The trustee liquidating MF Global Holdings Ltd’s broker-dealer unit won court permission to distribute $520 million of cash to customers, providing relief to customers whose accounts have been frozen since the futures brokerage went bankrupt.
MF Global Is Said to Have Used Customer Cash Improperly
New York Times
MF Global borrowed against customer funds without putting up collateral, a serious violation of Wall Street rules, said people briefed on an investigation into the firm’s collapse.
MF Global Said to Have Shifted Client Funds to Own Brokerage
MF Global Holdings Ltd. moved hundreds of millions of dollars from its futures client accounts to its own securities brokerage before its Oct. 31 bankruptcy, according to person familiar with the audit of the company.
CME May Face ‘Liability’ In MF Global Disclosure, Goldman Says
By Matthew Leising and Silla Brush – Bloomberg
Nov. 17 (Bloomberg) — CME Group Inc., the world’s largest futures exchange that’s fallen 8.5 percent this week, may face liability related to concerns it misled regulators over what it knew about MF Global Holdings Ltd., according to Goldman Sachs Group Inc.
CME: Followed CFTC, Exchange Rules In Review Of MF Global Books
By Jacob Bunge, Of DOW JONES NEWSWIRES
CME Group Inc. (CME) reiterated Thursday that it followed all proper protocols in its review of MF Global Holdings Ltd. (MFGLQ), following reports that the exchange operator was slow to report a shortfall in customer funds held by the broker-dealer.
CME Group Statement On MF Global Segregation Violation
In response to inaccuracies reported yesterday, CME Group confirmed today that it followed CFTC requirements and CME Rules and procedures in reviewing MF Global’s segregated funds statements and coordinating that review with the CFTC. CME was advised in the early hours of
UK staff cut as court frees MF Global cash
By Philip Stafford in London, Hal Weitzman in Chicago and Gregory Meyer in New York – Financial Times
MF Global’s UK arm is to axe more than half its workforce of about 725 as KPMG, its special administrator, winds down the overseas operations of the failed US-based futures broker.
Volcker Rule Is Irrelevant to MF Global Collapse: Frank Keating
Schadenfreude is misplaced when considering the wreckage of a financial firm in today’s weak economy. Yet empathy for the employees of MF Global Holdings Ltd. and the investors who owned its shares also is compatible with gratitude that no government agency came to the rescue.
Risk-Taker Corzine Now Under Fire for Big Bets
Former U.S. Senator and New Jersey Gov. Jon Corzine is a man known for taking risks. In 2007, he wasn’t wearing a seatbelt when his chauffeur-driven SUV crashed on the New Jersey Turnpike doing 90 miles per hour. Corzine was severely injured.