MF Global announcement

[zdreg]

Quote from denner:

I agree. Although with MF Global, I noticed something very peculiar back in July/August when they were the only FCM (According to the CFTC financial statement for FCM's) that had a negative net capital balance.

what were your thoughts about shorting it at that time?

 

[trendy]

Quote from denner:

I agree. Although with MF Global, I noticed something very peculiar back in July/August when they were the only FCM (According to the CFTC financial statement for FCM's) that had a negative net capital balance.

They did not have a net negative capital balance, but they apparently had an insufficient net capital balance. I don't know if that was bad data, or what, but the month before and the month after, they had sufficient net capital.

http://www.cftc.gov/ucm/groups/public/@financialdataforfcms/documents/file/fcmdata0711.pdf

 

[denner]

Quote from zdreg:

what were your thoughts about shorting it at that time?

To be honest, nowadays, that's an afterthought since I've become more concerned with the solvency of these firms. Obviously, I should have acted on it, in hindsight, but with the total lack of transparency and how things are "PR'ed" until the last minute demise, I find it hard to play.

 

[denner]

Quote from trendy:

They did not have a net negative capital balance, but they apparently had an insufficient net capital balance. I don't know if that was bad data, or what, but the month before and the month after, they had sufficient net capital.

http://www.cftc.gov/ucm/groups/public/@financialdataforfcms/documents/file/fcmdata0711.pdf

Well considering their leverage, whatever the marks might have been on the date of reporting could have led to alot of fluctuation. It would be helpful if a guy who knew the in's and out's of the accounting chimed in. You have to remember that there was alot of noise about a bond offering within a few weeks of that data coming out. If I remember correctly, there was also the strange kicker about Corzine leaving (for presumably the Treasury post) and the interest rate adjustments.

 

[kinggyppo]

Quote from denner:

Well considering their leverage, whatever the marks might have been on the date of reporting could have led to alot of fluctuation. It would be helpful if a guy who knew the in's and out's of the accounting chimed in. You have to remember that there was alot of noise about a bond offering within a few weeks of that data coming out. If I remember correctly, there was also the strange kicker about Corzine leaving (for presumably the Treasury post) and the interest rate adjustments.

the ironic Corzine clause

http://online.wsj.com/article/SB10001424053111903341404576484211245963554.html

 

[jd7419]

Quote from atticus:

Corzine is going to be doing some time. This is surreal.

I agree he is done, probably bernie madoff style. He was there too long to pass the buck.

 

[stock777]

Quote from atticus:

Corzine is going to be doing some time. This is surreal.

you slander a man before the facts are known. how dare you.

 

[SouthAmerica]

Administrators - How about moving this thread to the Chit Chat section?

 

[benwm]

Quote from steve0617:

We'll see. I just put in for a full wire out today. There was no argument from my MF guy. It was if nothing that was happening today was happening. Was totally cool with my withdrawl.

I did trade this AM just to see if I could so those funds are being held until tomorrow. The rest of the funds are supposed to go today.

Did you get your funds?
I genuinely hope you did.

 

[SREC]

Quote from stock777:

you slander a man before the facts are known. how dare you.

You can read the shareholder letters where he outlines his opinion and position to go long Euro debt because he has the expertise from Goldman and politics.

No real reason for him to do time but civil suits are in order.