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.
On Wednesday Rep. Michael Grimm (R-N.Y.) and several other Republican congressman gathered in Washington D.C. to urge Attorney General Eric Holder to appoint an independent counsel to investigate MF Global.