When MF Global failed in October of 2011, it was discovered that $1.6 billion of segregated customer assets was missing. Safeguarding these assets was the business's responsibility, and in the words of one SEC official, its "holy obligation."
What exactly is understood about the lost assets is the fact that they were chosen from the accounts of customers trading in commodity futures contract and used in other areas of the firm; less is known about how it occurred. The instance describes MF Global's operating model, certain management decisions, its regulatory supervision, along with the madness of its closing days, allowing for an exploration of how so much cash might have gone missing. (Note: This case may be in read in conjunction with its companion, "MF Global: Shifting Stripes" (HBS Case 312- 105), which discusses the managerial and strategic problems resulting in the company's fall.)
PUBLICATION DATE: June 18, 2012 PRODUCT #: 312106-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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