Arguably no scandal in the history of the futures industry has done as much damage as the MF Global debacle in the fall of 2011. The reason is that it challenged one of the core underpinnings of the futures industry—that customer segregated funds would remain segregated from the rest of the capital in a futures commission merchant (FCM) so that it would not be at risk even if the FCM itself failed.
Remarks of Acting Chairman J. Christopher Giancarlo before the International Swaps and Derivatives Association 32nd Annual Meeting in Lisbon, Portugal: Changing Swaps Trading Liquidity, Market Fragmentation and Regulatory Comity in Post-Reform Global Swaps Markets
We find ourselves in a very different position than eight years ago when President Obama was about to take office. In January of 2009, the world was in the depths of the worst financial crisis since the Great Depression. Financial institutions across the globe were on the brink of collapse.
Jon Corzine, former New Jersey governor and Goldman Sachs (GS.N) co-chairman, will pay a $5 million civil fine to settle a U.S. regulator's lawsuit over the 2011 collapse of his commodity brokerage, MF Global Holdings Ltd.