On September 1, 2011, MF Holdings, the parent company of MF Global, announced that FINRA required MFG to come up with capital to meet the requirements of SEC Rule 15c3-1. Specifically, MFG's Repurchase to Maturity (RTMs) had to be revalued under FINRA's ruling which revaluation meant MFG had to come up with money and that caused a liquidity crunch for MFG.
The Wall Street Journal waited until October 17, 2011 to publish FINRA's ruling. Two weeks after the WSJ story, MF Global filed for bankruptcy. Apparently, few knew about FINRA demand upon MFG & having read it in the WSJ, too many took action to withdraw funds from MFG causing MFG to collapse. Curious time lapse between FINRA ruling & WSJ article, it permitted the big guys to get out of MFG before the ruling became widely known. Corzine was one of the big guys to get out in August.
On September 1, 2011, MF Holdings, the parent company of MF Global, announced that FINRA required MFG to come up with capital to meet the requirements of SEC Rule 15c3-1. Specifically, MFG's Repurchase to Maturity (RTMs) had to be revalued under FINRA's ruling which revaluation meant MFG had to come up with money and that caused a liquidity crunch for MFG.
staywithtruth 2 months ago
The Wall Street Journal waited until October 17, 2011 to publish FINRA's ruling. Two weeks after the WSJ story, MF Global filed for bankruptcy. Apparently, few knew about FINRA demand upon MFG & having read it in the WSJ, too many took action to withdraw funds from MFG causing MFG to collapse. Curious time lapse between FINRA ruling & WSJ article, it permitted the big guys to get out of MFG before the ruling became widely known. Corzine was one of the big guys to get out in August.
staywithtruth 2 months ago