MF Global hires bankruptcy lawyers: "...prepare for a possible bankruptcy filing"

Originally posted by surrealist
reply to post by michaelmcclen

 

A stronger currency has adverse effects on the local economy. It makes exports cost more in global trading. Lowering the currency, in this case the Japanese lowering the Yen, ensures the shopers from overseas do not pay more for Japanese goods. Hence why you can get currency wars.

Golly gee . . . if they let it run it's course and the cost of exports shot up, well then maybe, just maybe we'd actually make something in this country for a change.

Oh, I forgot . . . that wouldn't be good for the 1%.

never mind.

MF Global Files for Bankruptcy - Financial Times

High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email [email protected] to buy additional rights. www.ft.com... The bankruptcy filing listed MF Global Finance USA with $100 million to $500 million in assets and $10 million to $50 million in estimated liabilities.

Some more info on this story...

Originally posted by Julie Washington
Broker-dealer MF Global files for bankruptcy


NEW YORK (AP) – Broker-dealer MF Global, headed by former New Jersey governor and Goldman Sachs chairman John Corzine, has filed for bankruptcy protection, apparently because of holdings of European debt.

Link to Full Story

This still makes NO SENSE at all. Their amount of European debt in capital exceeds their listed liabilities by 5.5 billion dollars. So, clearly, their debt holdings are not being listed as liabilities. They are listed as assets. How can a corporation go under from asset holdings lmao..

They hold some crappy debts, for sure, but none of the holdings have even a remote chance of defaulting, and they hold no Greek debts ... the only country to quasi default. The whole proceeding sounds incredibly fishy, naturally MSM sources are regurgitating random sound bites like they normally do.. I wonder what bet they made really went bad?

reply to post by GoalPoster


Who in their right minds would buy overpriced and underengineered pieces of $hit, anyway?

And so it begins... PART II

PART I being Vatican calling for a one world government just a couple of days ago...

The plot thickens.

Federal regulators have discovered that hundreds of millions of dollars in customer money have gone missing from MF Global in recent days, prompting an investigation into the company’s operations as it filed for bankruptcy on Monday

and

But regulators are examining whether MF Global diverted some customer money to support its own trades as the firm teetered on the brink of collapse. If that was the case, it could violate a fundamental tenet of Wall Street regulation: Customers’ money must be kept separate from company money.

dealbook.nytimes

I think this is a pretty big story. MF Global was a Primary Dealer for treasuries. Headed by a former politician and chairman of Goldman.Corzine's name had been thrown around as a possible replacement to Giethner as Secretary of Treasury.

Rockpuck, in response to what you were saying earlier about assets, wouldn't a firm levered 25:1 or greater (like Lehman or Bear) be insolvent with miniscule losses on their underlying assets? Also they seem to be pretty active in derivatives, maybe they wrote some CDS on Greek debt and can't pay (like AIG). Going to be an interesting investigation, and once again I see that regulators are still doing a great job in stopping this crap.

reply to post by CasiusIgnoranze


Please.. the Vatican has been calling for a one world government (that is... its self..) since about 500ad Nothing new.

reply to post by jefwane


Yeah it looks like someone might be in a bit of poop poop.

MF Global Caught Stealing Hundreds Of Millions From Customers?

Okay, Lehman had leverage at 30 to1. Get this MF Global had leverage of 80 to 1.

The company headed by Corzine disclosed $41 billion in assets versus $39 billion in debt and an equity value of $500 million plus $325 million of investment grade debt, according to Forbes’ Robert Lenzner. That’s 82 times asset to capital ratio; Lehman was levered up 30.7 times.

From Forbes

I'm glad this company failed now. Ponder if you will the following information. John Corzine, head of now bankrupt MF Global, is a former US Senator and Governor of New Jersey. He was on the short list of possible replacements for US Treasury Secretary TIm Giethner. We know this because the company that insured MF Globals latest bond offering had a key man clause for if Corzine were offered a job in Government by the President.

There is a unique feature in the MF Global deal. The interest rate on the bonds rise a full one percent if one conditions is met in the future. What is that condition? The issue carries a notable “key man event” trigger, mandating a 100 bps increase in the interest rate if the company’s chief executive officer, Jon Corzine, is appointed by the President of the United States and confirmed for a role in the federal government before July 1, 2013.

Bruce Krasting

Had this not happened he damn well could have been Treasury Secretary in the next couple of years. Has the Senate ever failed to confirm one of their alumni of a cabinet seat, or a former Goldman guy for that matter? I'm still getting my head around the 80 to 1 gearing. That's what 266% what blew Lehman up?

Also as far as scale goes, MF Global will be the 7th largest US bankruptcy.

The following is a list of large U.S. bankruptcies since 1980, according to court records and the website BankruptcyData.com: COMPANY/YEAR TOTAL ASSETS Lehman Brothers Holdings Inc (2008) $639.00 billion *
WorldCom Inc (2002) 103.91 billion
General Motors Corp (2009) 91.05 billion
CIT Group Inc (2009) 80.45 billion
Enron Corp (2001) 65.50 billion
Conseco Inc (2002) 61.39 billion
MF Global Holdings Ltd (2011) 41.05 billion *
Chrysler LLC (2009) 39.30 billion
Thornburg Mortgage Inc (2009) 36.52 billion
Pacific Gas and Electric Co (2001) 36.15 billion
Texaco Inc (1987) 34.94 billion
Financial Corp of America (1988) 33.86 billion
Refco Inc (2005) 33.33 billion
Washington Mutual Inc (2008) 32.90 billion *
IndyMac Bancorp Inc (2008) 32.73 billion

Right between Enron and Chrysler.

And NOW it gets interesting:

Business Insider - "There's Hundreds Of Millions Of Dollars Missing At MF Global, And Regulators Are Investigating"

www.businessinsider.com...

We could be in for a crazy ride on this one. I remember the FIRST days of Enron, as well as the 08 financial crisis . . . Like those, we could be in the EARLY INNINGS.

Everyone still focused on the bankrupcy . . and not WHY someone wouldn't (or, perhaps) COULDN'T buy them . . .

I think this is bigger than first glance. I've been listening to the evening news and found the lack of more than general detail rather disturbing. I'm still wrapping my head about how in this post Lehman age a Primary Dealer could be allowed to be levered at 80 to 1.Dodd-Frank did absolutely squat to prevent this. All the regulators seem to be just as incompetent as they were 3 years ago.

If OWS is smart, they will say " Look right here, this is one of the reasons we're here. This is what we're talking about." The political affiliation of the CEO of MF Global is inconvenient if you are left leaning but demonstrates that both parties are complicit in the situation we find ourselves in.