Analysis from Thomson Reuters News & Insight is suggesting that MF Global may have exploited a "loophole" in brokerage borrowing rules that allowed it to bet with clients' money legally.
Thomson Reuters suggests that the process, called re-hypothecation, allowed MF Global to tap client funds to finance a massive trade in the Eurozone repo market. It also is suggesting that the loophole may prevent those who ultimately funded that bet -- the clients -- from retrieving any funds.
Read more about MF Global and the great Wall St re-hypothecation scandal.
