When their clients began getting an idea that MF Global was going down, they requested their money be transferred elsewhere. Instead of wiring the money, MF sent them checks by snail mail.
Now, of course, the checks are bouncing.
In the end, the issue of bad checks may pale in comparison to the missing $600 million in funds. But it is indicative of just how disorganized things were at MF Global in its waning days as Corzine & Co. raced to find a buyer for the firm.
The $600 million was missing before the bankruptcy filing. Inquiring minds want to know. Was this disorganized chaos or organized looting?
MF Global said to be subject of FBI investigation.
Disorganised chaos or organised looting? Surely lots of both, isn’t that the way the banking system works? One after another of these “accounting errors”, “miscalculations” of the market, keep popping up and still governments turn to the banking system to save the world, and the banking system turns to governments to save the banking world. They are well matched. I think it was Mervyn King that said, “If the public new how the banking system worked, there would be a revolution tomorrow.” He should know he runs it over here.