This was no small fraud. Coming on the heels in the MF Global debacle, it threatened the entire futures industry structure. One fraud and violation of customers segregated funds is an anomaly, two might be considered a trend.
PwC, which provided auditing and accounting experts, failed to advise the firm to account properly for its European sovereign debt holdings, leading it to invest too much in them, MF Global said in a complaint.
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
Going into the January 2014 USDA report, the talk in the corn market was of 2013 corn production being revised higher, stagnating demand, and U.S. corn ending stocks coming in near a comfortable 2 billion bushels.