Many Alarms Rang Before MF Global Crashed

[RamboLiberal]

Source: NY Times

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While the commodities and derivatives brokerage firm fell apart with ferocious speed, the collapse came after regulators raised warning flags for more than four months. They told MF Global it needed to raise more capital, and they asked about risky transactions involving European debt.

Yet Mr. Corzine resisted, lobbying to persuade regulators that the firm did not need to raise capital, according to people briefed on the discussions. MF Global did improve its capital position, but it was not enough to save the firm.

The details that have emerged about MF Global’s final 72 hours — drawn from dozens of interviews with people who participated in the weekend discussions or were directly briefed by people who did — illustrate that three years after the financial crisis, Wall Street executives are still fighting regulators’ demands.

It also shows that even when the watchdogs sound the alarm, it is not necessarily enough to save a firm. Now, multiple regulators and the Federal Bureau of Investigation are examining the firm’s collapse, trying to determine what went wrong and where the missing money, now suspected to be roughly $630 million, went.



Read more: http://dealbook.nytimes.com/2011/11/02/many-alarms-rang-before-mf-global-crashed-in-ruins/?hp

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Corzine may need to be indicted!

[Trillo]

1. I don't remember reading anything about it.

Must have been silent alarms.

[No Elephants]

2. Um

The first sentence of the Op says regulators had been raising alarms with the company for four months.

[Trillo]

7. Did you have a point? nt

[aquart]

3. Oh, super. The first Wall Street asshole to do time will be a Democrat.

What am I saying? The ONLY Wall Street asshole to do time will be a Democrat..

[raccoon]

4. I don't guess the MF stands for what it usually stands for? nt

[defendandprotect]

5. K/R

[City Lights]

6. The system was blinking red. eom