I wonder if those with assets held at Penson are spooked after the sudden collapse of MF Global. Now it seems is not the time to wait for the bad news and end up having your account frozen and unable to wire it out before the lock.
Penson to shut down Asian operation as losses grow
Tom Osborn
http://www.efinancialnews.com/story/2011-10-12/penson-to-shut-down-asia-operations-as-losses-grow
On August 5, credit rating agency Moodyâs downgraded Penson to B2 from B1, five notches into junk territory, and placed it on review for further possible downgrades. Explaining the move, Moodyâs said: âPenson's financial flexibility is severely limited as a result of continued operating losses due to industry-wide low trading volumes and the current historic low interest rate environment.
âIn addition, Penson's cash flow leverage has increased significantly over the past several quarters, and the company may find it increasingly difficult to service its debt obligations without an improvement in operating performance and/or strategic asset sales.â
Moody's also raised concerns around the company's governance and risk management controls.
Penson to shut down Asian operation as losses grow
Tom Osborn
http://www.efinancialnews.com/story/2011-10-12/penson-to-shut-down-asia-operations-as-losses-grow
On August 5, credit rating agency Moodyâs downgraded Penson to B2 from B1, five notches into junk territory, and placed it on review for further possible downgrades. Explaining the move, Moodyâs said: âPenson's financial flexibility is severely limited as a result of continued operating losses due to industry-wide low trading volumes and the current historic low interest rate environment.
âIn addition, Penson's cash flow leverage has increased significantly over the past several quarters, and the company may find it increasingly difficult to service its debt obligations without an improvement in operating performance and/or strategic asset sales.â
Moody's also raised concerns around the company's governance and risk management controls.
