Without any doubt MF Global will file for bankruptcy, here is why:

Quote from mokwit:


NOW, the question is, is that USD46.66bn cash as per last reorting date still there (or is it gone?) and is it, and other assets enough to offset debt of USD24bn?
More...
The cash says mrq, most recent quarter.

It makes zero sense that MF has cash of $46.66 Billlion, with debt of only $24.34 B
A cash surplus of $22.32 Billlion? Hard to believe

How could MF get $22.32 in cash?
From profits? No!
Selling stock? They don't have that much market cap.
Taking customer deposits into their own accounts? Likely, remember they play many unregulated markets like forex.
 
I agree the stated figure seems high and that as I highlighted it is a historical snapshot, but I think I am jut going to have to leave you to believe what you want to believe on this.
 
Quote from mokwit:

I agree the stated figure is high and that as I highlighted it is a historical snapshot, but I think I am jut going to have to leave you to believe what you want to believe on this.
More...
It's OK

I'm not a conspiracy theorist, but remember this is a Bermuda company.

Therefore only loosely regulated in the US.
 
Quote from crgarcia:

It's OK

I'm not a conspiracy theorist, but remember this is a Bermuda company.

Therefore only loosely regulated in the US.
More...

Yahoo does not compute these figures right for a broker. Solves your problem?

Best you stay away because you do not know what you are talking about. Just a friendly tip. :)
 
Quote from crgarcia:

It's OK

I'm not a conspiracy theorist, but remember this is a Bermuda company.

Therefore only loosely regulated in the US.
More...

I really don't think that being based in Bermuda really has anything to do with whether or not the FED would open the repo window for these guys . . .

The bottom line is that they are the #1 clearing firm on the CBOT and CME, and #2 on the NYMEX.

They are the "oil" that lubricates the wheels for most of the exchanges out there and without a doubt, the oldest commodity company on this planet, started in 1783 by James Mann in London.
 
"Thus it is the client's capital that stands in 'first position' against trading losses or gains and the company levers its balance sheet to maintain regulatory capital to collateralize these positions and extend margin," Casteleyn said in a client note.
 
Quote from crgarcia:

MF Global has an Enterprise Value (assets and securities less debts) of -$20.24 Billion, please note the minus sign.

Even if their stock goes up 10 times, from $6.05 to $60.50, the market cap goes up from $726.39 Million, to $7.26 Billion.

So their Enterprise Value would still be $12.98 Billion in red ink.
A clear bankruptcy.
More...

Enterprise value is equity market cap plus debt. Not total assets minus debts. Your definition is completely wrong.
 
Quote from crgarcia:

Add to this, the fact that MF is based in Bermuda, not an US company.

The Fed would prefer not bail-out a company that doesn't pay taxes in the US.

$20 Billion is too much for banks to organize a private bailout (like LTCM), besides banks don't have excess cash to be bailing-out.

So this leaves only the Fed as the one to bail-out. I don't think the Fed would spend $20 billion in an offshore clearing house.
More...

So it is best to find a futures broker and clearing firm that are based in the US ?

Imagine the 2 biggest.

Refco no more

and Man has the wheat trade loss , and I don't know if that is a problem for them.

The uninsured futures account has always made me nervous, maybe the best thing is just keep enough for day margins and close the position @ 3:14 central and reopen @ 3:31 central if you want to have an overnight.
It is pretty rare for a huge gap up in those 15 minutes (if you're a mostly long trader)

Thought about trading ETF'S but don't like the lack of 24 hour trading , especially the lack of 24 hour stops.
 
You must log in or register to reply here.
Back
Top