MF Global
About MF Global
MF Global filed for bankruptcy on October 31, 2011. The brokerage was led by Jon Corzine, former CEO of Goldman Sachs and former US Senator and Governor of New Jersey. MF Global made a 6.3 billion bet on European sovereign debt using customer funds. When the trades went bad, approximately 1.6 billion in customer money was missing. It was later determined that MF Global had used customer funds for proprietary trading in violation of regulations. Corzine testified before Congress but was never charged criminally. The bankruptcy trustee recovered most of the customer money over several years. The case damaged confidence in the futures industry, where customer funds were supposed to be sacrosanct. MF Global demonstrated the risks of allowing proprietary trading at a customer facing brokerage.
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