The regulators said in their statement they advised bankruptcy as the “safest and most prudent course of action to protect customer accounts and assets.”
from the latest Bloomberg piece.
well, this explains it all. Regs stopped the IB deal,
Regs stopped JC Flowers. MF went bk because the Feds
shut them down over the probe. As individual investors,
no matter how smart or experienced we may be, there is
one thing you can never protect against. Criminal activity.
So, I for one won't beat myself up over this, and neither
should anyone else who got trapped in a long position.
We are victims of crime.
A hedge fund is a different animal. Think if u had a futures account and zero positions on and all ur funds in straight cash, and you get a haircut. Why would anyone have a futures acct going forward if that can ha
I also believe that there ws massive insider info trading on this ..how did most of the major shareholders know that a deal wasnt going to happen on Thursday? There was no reason to believe that.
I got lucky on this one. I was going to invest in the stock since I thought a deal was going to happen to buy out the company, but could not get the required money wired to my stock trading account in time. Also, thankfully my futures trading is with another firm.
At this point, it looks like the stock is going to be worthless, not because of the bankruptcy, but because they are going to prevent them from trading. This means that all the customers are going to switch to a new broker to be able to trade. If a business loses all of its customers, then it has nothing. I think the bond holders may lose some money to since I don't think the cash on hand can cover all of the bonds.
They never intended on selling..it was all a sham..how can you sell when you won't open the books up for people to see? I studied this company and for the life of me I could't figure out why they wouldnt announce a deal. It was either fruad or gross negligience. The best thing to ever happen is to remove management ASAP. I believe there will be big fall out from this..Another Big audtiting firm should fall or either set up an account to help fund creditors and possibly shareholders...They may be able to claw back sevral hundred mill from the board and executives also..I am writing this thing off and movign on but I wouldn;t be suprised if I get a check in a year or two..This will likely never trade again so it is what it is....
Client funds are guaranteed up to $500K. Above that I suppose there are risks but unless MF Global is an absolute ponzi scheme I'd be pretty shocked if any customers take a hit as a result of fraud.
fed investigation is going to take a long time - in the meantime all assets will remain frozen which may be a good thing because the 6 billion bet on euro bonds may have a chance to mature and pay out in full
pecking order if criminal offence proven:
i've written off my $6,000 loss but if somehow i get it back i'm going to vegas and burning it !!
Hopefully Corzine will follow the same path Madoffs son did, Biggest POS WILL NOT BE MISSED.
did anyone catch he worked for the same UK MAN GROUP company that sold 16million in stock May of last year. I bet the same company had a huge short position on MF
I worried about the high employee turnover but aside from that I don't see how anyone could have seen it coming. Fraud is virtually impossible to identify from the outside.
Sure wouldn't want to be an employee involved in keeping the books there. They will have to get some serious bonus payments but most likely pay the forensic accountants an absolute fortune to sort things out. If it is material this is an instance where the public accounting firm should pay a heavy price.
It's twisted, but I can't wait to find out what caused the meltdown. I do not think it was a classic bank panic.