The MF Global debacle was really a slow motion car crash. There were numerous red flags going back a year and the bottom line is that according to the initial bankruptcy filing, there was capital within MF Global Holdings to cover the shortfall in customer segregated funds but the appropriate regulatory authorities did not demand those assets
Almost 20 months after the fateful fall of MF Global, the regulator files its complaint against MF Global as well as CEO Jon Corzine and Assistant Treasurer Edith O’Brien. MF Global will settle, but Corzine and O’Brien may fight on.
James Koutoulas made an interesting claim in a conversation with CNBC last week. He indicated that he has inside information from sources within JP Morgan that the bank is holding up to $600 million in former MF Global customer money.