The latest news on the MF Global bankruptcy and fallout, published in the John Lothian Newsletter (subscribe here) the morning of December 5, 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.
House Panel Votes to Subpoena Corzine for MF Global Hearing
By Silla Brush – Bloomberg
Dec. 2 (Bloomberg) — The U.S. House Agriculture Committee voted to subpoena Jon S. Corzine, former chairman and chief executive officer of MF Global Holdings Ltd., for a Dec. 8 hearing on the collapse of the New York-based brokerage.
Remaining MF Global Directors Resign
By Jacob Bunge Of DOW JONES NEWSWIRES
The remaining directors of MF Global Holdings Ltd. (MFGLQ) turned in their resignations this week, following the appointment of a trustee to oversee liquidation of the bankrupt holding company.
MF Global customer: My entire account is missing
As investigators search for an estimated $1.2 billion missing from MF Global customer accounts, one customer says his entire account has vanished and blames the trustee liquidating the firm. An Illinois-based futures fund on Friday said its more than $50 million account with the broker-dealer unit of MF Global Holdings Ltd is missing, and asked a federal bankruptcy judge to order the trustee to find it.
Big question as Corzine gets set to testify about MF Global collapse: What will he say?
By Ed Beeson/The Star-Ledger
The question is no longer will he appear, but what will he say. A congressional committee Friday voted to subpoena Jon Corzine to testify at a hearing next week on MF Global, the failed futures firm the former governor and senator led until shortly after it collapsed Oct. 31.
Robert Kuttner: Why Corzine Won’t Do Time
The Huffington Post
Will Jon Corzine, former U.S. senator, former New Jersey governor, former chairman of Goldman Sachs, end his high-profile career in the slam? Don’t bet the farm on it. Corzine’s most recent gig was as head of MF Global Holdings, the firm that went bust when Corzine made some $6.3 billion in unfortunate wagers that European sovereign bonds were a bargain. But MF Global apparently not only bet its …
Analysis: MF Global proves Enron-era accounting lives on
Reuters via Yahoo! News
(Reuters) – The off-balance-sheet accounting methods that Enron and Lehman Brothers made famous in their epic failures years ago have a modern-day poster child: MF Global . 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 …
Shock Waves From MF Global Collapse Felt On Farms
Many farmers and ranchers are waiting to learn how much money they’ve lost in the collapse of commodities trading firm MF Global Inc.
MF Global Staff Bitten by Pay Plan
BY CHRISTIAN BERTHELSEN – WSJ
Early last year, MF Global floor broker Todd Thielmann received a notice in the mail that his take-home pay would be cut by 10%, with the money diverted to a fund for employees to own restricted stock in the firm. The timing couldn’t have been worse. Less than two years later, the stock is almost worthless.