MF Global (Financial Firm) Mirrors Full Tilt's Collapse - Poker News

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MF Global (Financial Firm) Mirrors Full Tilt's Collapse

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11-01-2011 , 07:39 AM

Stone_Palace

centurion

Join Date: Sep 2007 Posts: 188

http://www.forbes.com/sites/afonteve...o-big-to-fail/

I suppose regulation doesn't always work either.

This Australian based financial firm found itself in a wee bit of trouble. It found a buyer to rescue them...only to have that buyer bolt after it found millions of investors' dollars were "missing". Those dollars were supposed to be kept segregated from operating funds, but apparently were not.

The story is still unfolding...

Here's a graphic from the Wall Street Jornal that shows MF Global's size relative to well known companies that have melted down in the past:

11-01-2011 , 09:49 AM

AcesVsMuck

adept

Join Date: Dec 2008 Posts: 1,071

Interesting. Thanks for the post.

I don't know much about this stuff (including what area of knowledge it should be "filed" under) but:

Quote:

That movement may get support from a report late Monday night that federal regulators are investigating whether MF Global siphoned off customer money to support its own trades as they went dangerously sour.

Just makes me wonder how on earth business is so minimally regulated so that they can do these things. Is it straight up illegal? Or is it a grey area they can work around, or were they just relying on it working and none would be the wiser?

Last edited by AcesVsMuck; 11-01-2011 at 09:57 AM.

11-01-2011 , 09:55 AM

5-Ton Hammer

journeyman

Join Date: Jul 2010 Posts: 360

I glanced upon the title and almost felt something dying in me. Plz dont put "FTP" and "collapse" in the title again. We are waiting news anytime soon and this is not for the faint-hearted

Cheers

11-01-2011 , 10:18 AM

chadmack

banned

Join Date: Feb 2007 Posts: 3,323

FTP was cashing out the money and paying it to owners and financing player cashouts with new deposits. Thats not what went on here. They put some of their clients money at risk trading on their own account and lost it.

They broke laws and people will probably go to jail but its not a ponzi scheme like FTP and these actions did not enrich the owners like FTP's did.

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