Friday, March 30, 2012

MF Global Customer & Fund Manager on JP Morgan and the Goldman Connection

Yesterday, the MF Global collapse took center stage on Capitol Hill. The threat of crony capitalism and the sanctity of customer money in US markets hangs in the balance. The unprecedented disappearance, loss, and theft of customer money (1.6 billion dollars worth of customer money to be exact) kept in segregated accounts remains unexplained. And as MF Global executives yesterday — legal counsel, CFO, and assistant treasurer — came to answer questions, what did their answers reveal? Not much unfortunately. General Counsel of MF Global Laurie Ferber, Chief Financial Officer Henri Steenkamp, and Christine Serwinski, former chief financial officer of the company’s brokerage unit, all seem to know nothing! In fact, listening to the testimony, you would think that this firm ran on autopilot.