Why did MF Global collapse?
MF Global’s business was commodity brokerage and its customers were farmers, hedge funds, and other customers who traded commodity contracts. The losses that eventually drove MF Global into bankruptcy stemmed from high risk bets on European sovereign bonds that Corzine made as he swung for the fences.
How many terms did Corzine serve?
Jon Stevens Corzine (/ˈkɔːrzaɪn/ KOHR-zyne; born January 1, 1947) is an American financial executive and retired politician who served as a United States Senator from New Jersey from 2001 to 2006 and the 54th Governor of New Jersey from 2006 to 2010.
Who is Jon Corzine married to?
Sharon Elghanayanm. 2010
Joanne Dougherty Corzinem. 1969–2003
Jon Corzine/Spouse
What was the story of the MF Global Collapse?
It wasn’t. The story of MF Global, the recently failed commodity futures broker, is a telling example of a collapse with unfortunate ongoing consequences. For Jon Corzine, erstwhile Goldman Sachs chair and New Jersey politico, the undoing of MF Global marks the latest of series of undertakings with good intentions gone bad.
What did MF Global do before it went bankrupt?
MF Global, formerly known as Man Financial, was a major global financial derivatives broker, or commodities brokerage firm that went bankrupt in 2011. MF Global provided exchange-traded derivatives, such as futures and options as well as over-the-counter products such as contracts for difference (CFDs), foreign exchange and spread betting.
What was the cause of the MF global meltdown?
Failure of those, and other, repo positions contributed to the massive liquidity crisis at the firm. MF Global experienced a meltdown of its financial condition, caused by improper transfers of over $891 million from customer accounts to a MF broker-dealer account to cover losses created by trading losses.
Why was MF Global not too big to fail?
Unlike bank deposits or brokerage accounts, futures accounts carry no backstop akin to FDIC insurance or SIPC coverage. For this reason, account segregation is deemed sacrosanct. Finally, by the fact that there has appeared to be no systemic ripple effect, MF Global would not seem to have been too big to fail.