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  1. #1

    MF Global Bankruptcy

    The Feds are now investigating to find out where nearly $700 million in customer money went, says the New York Times. This is a big, big deal.

    [url]http://www.agweb.com/blog/Agricultures_Big_Picture_177/[/url]

  2. #2
    Senior Member roger7 is on a distinguished road
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    So will this be different than AIG, Citicorp, Lehman Bros.? The government will "investigate" 'til he!! freezes over. Corsine will dance away with his $15,000,000. and nobody will be at fault, just bad business decisions. R7

  3. #3
    Senior Member mfsman is on a distinguished road
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    Agree, Greg, and curious of Corzine's involvement with this. I have had several articles sent to me in regards to this and do not think it good for any leveraged position. They are stating only $100 mln. in liabilities and think that will prove to be optimistic. "They were too exposed to Euro debt"? From Dooley forward I do not think there has been adequate oversight.

  4. #4
    Senior Member verbatime is on a distinguished road verbatime's Avatar
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    Sounds like someone robbed Peter to pay Paul...

  5. #5
    It will be interesting to see how deep the tentacles run and what that will do to our markets?

  6. #6
    Senior Member Tas is on a distinguished road
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    My read on this is when one domino falls flat,other domino's well have there "foundations" checked very very close and i don't see that being as a positive our markets

  7. #7
    Senior Member Tom In Ont is on a distinguished road
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    well fellas, there is just never one ****roach.
    That POS should have gone down and been reprimanded when he was doing shady deals with ole lady Katz.
    No oversight, just people getting bought off to support his corrupt and immoral behavior.
    Another Goldmanite bite the dust.........
    Now, this goes to show everyone how deeply flawed the Euro foundation is and the cracks are spreading there tentacles aiding in the contagion that will ultimately make there unity blow up.
    Last edited by Tom In Ont; 11-01-2011 at 04:04 AM. Reason: add on

  8. #8
    Senior Member Tom In Ont is on a distinguished road
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    should this guy not be holding hands with Bernie Madoff?
    An investor is an investor and many people have been ripped off.
    I'm wondering how many of those funds that were involved that got ripped off tried in vain to get there money out before this implosion?

  9. #9
    Senior Member Tom In Ont is on a distinguished road
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    The former New Jersey governor and Goldman Sachs co-head was deemed so key to the broker’s success that bondholders demanded an extra percentage point of interest if he left for a post in the Obama administration.

    On Oct. 24, Moody’s lowered the firm’s credit ratings in part on concern that the company wasn’t sufficiently managing risk. A day later, the broker reported its largest-ever quarterly loss and disclosed how much its exposure to bonds sold by Italy, Spain, Belgium, Portugal and Ireland had grown.

    Assurances that all the European debt MF Global had invested in would mature by December 2012 and that the company had financed the transactions through the life of the bonds didn’t stop its shares from falling 66 percent in four days to $1.20 a share. The broker tapped almost all of a $1.2 billion credit line.

    Bondholders are now in line with creditors owed $39.7 billion, according to Chapter 11 papers filed yesterday in U.S. Bankruptcy Court in Manhattan.

    Corzine’s Fault

    “The fact that Jon Corzine, the ex-head of Goldman Sachs, was at the helm for MF Global gave the company a lot more ability to extend their reach than they ordinarily would,” Sean Egan, president of Egan-Jones Ratings Co., said yesterday on Bloomberg Television’s InBusiness with Margaret Brennan.

    The balance sheet reached 40 times the firm’s equity, Egan said.

    “They should have been levered in the area of maybe about six-to-one,” he said. “Having only 2.5 percent equity to assets is ridiculous. That means if you have a 2.5 percent downdraft in the balance sheet, which is very likely, then they’re bankrupt.”

    MF Global Bankruptcy: The Biggest Losers

    The Wall Street Journal reports on MF Global Bankruptcy: The Biggest Losers

    1) Fidelity funds, 13.9 million shares or 8.44% of common stock

    2) Guardian Life Insurance Co., 12.9 million common shares, or 7.8%

    3) Fine Capital Partners, 21.5 million shares, 7.37% *(In a recent SEC filing, Fine Capital reporting owning 12.16 million shares, for a 7.4% stake in MF Global.)

    4) Cadian Capital Management, 10.2 million shares, 6.17%

    5) TIAA-CREF, 9.5 million shares, 5.77%

  10. #10
    Senior Member Tom In Ont is on a distinguished road
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    Now the ones directly implicated espouse voodoo bs. about its was not just one persons fault.

    At MF Global, Two Other Falling Stars
    nytimes

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    KEVIN ROOSE, On Monday October 31, 2011, 4:35 pm EDT

    As MF Global filed for bankruptcy on Monday, much of the attention has focused on the Wall Street firm's chief executive, Jon S. Corzine, the former New Jersey governor and onetime head of Goldman Sachs.

    But two of Mr. Corzine's lesser-known deputies - his chief financial office and chief risk officer - have also found themselves at the center of the maelstrom.

    Henri Steenkamp, MF Global's chief financial officer, was a rising star at the firm. At 35, he was among the youngest C-level executives on Wall Street, and had recently been named the "40 Under 40" list at the trade publication, Treasury & Risk. In this role, he was responsible for overseeing "the company's financial operations, including treasury, accounting and all global financial control and reporting functions," according to his biography on the firm's Web site.

    "Henri's achievements during his five years at MF Global - including his role in helping to build our global finance and reporting operations - make him exceptionally qualified to lead this function," Mr. Corzine said, in a press release earlier this year announcing Mr. Steenkamp's appointment to chief financial officer. "I am confident that all of our stakeholders will benefit from his financial acumen and sound understanding of MF Global."

    Before coming to MF Global in 2006 as vice president of external reporting, Mr. Steenkamp spent 8 years at PricewaterhouseCoopers, the large accounting firm, both in South Africa and in New York, where he "assisted South African companies as they went public in the U.S," according to the biography.

    During an October conference call announcing the firm's most recently quarterly earnings, less than two weeks before the firm filed for bankruptcy, Mr. Steenkamp reassured analysts that MF Global was on stable ground.

    "Despite these uncertain and volatile times, we feel good about our capital structure and liquidity position," he said.

    Michael G. Stockman, MF Global's chief risk officer who joined the firm in January, comes from a long background of risk management. According to his firm biography, he is a former chief risk officer for the American branch of UBS, leaving in 2008.

    In addition to his duties at MF Global, Mr. Stockman also has a foot in academia. He is a visiting scholar at Dartmouth College's Tuck School of Business, and has made a bit of an academic specialty of the subprime mortgage crisis of 2007. In 2008, he told Tuck Today, the school's alumni magazine, that he thought the crisis was the fault of no single person or entity, but rather the combined effects of mortgage originators, borrowers, rating agencies and other intermediaries all missing vital warning signs that the sector was collapsing.

    "Small mistakes can end up compounding and causing catastrophic damage," Mr. Stockman said of that disaster, three years before his firm's own.

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