Jon Corzine, MF Global, and Unaccountability | NationofChange: During the summer of 2011, the CBOE and FINRA told MF Global Inc. that it didn’t have enough capital behind its repo-to-maturity (RTM) positions in European sovereign bonds – the positions Corzine put on. By mid-August, the SEC got involved and met with Corzine and other MF Globalites. They then had to file a net capital deficiency notice on August 25th for $150 million.
During the week of October, 17th – MF Global Holding had to increase capital again at MFGI - for the same positions. The next week, on October 25th, it released abysmal quarterly earnings, and got downgraded to almost junk status. The stock plummeted and customers were heading for the hills, the fastest ones getting their money out, others getting locked out.
During the week of October, 17th – MF Global Holding had to increase capital again at MFGI - for the same positions. The next week, on October 25th, it released abysmal quarterly earnings, and got downgraded to almost junk status. The stock plummeted and customers were heading for the hills, the fastest ones getting their money out, others getting locked out.
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