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MF Global ‘break-the-glass’ plan outlined options for downgrade
From Bloomberg/Businessweek.com: Senior executives at MF Global Holdings Ltd., anticipating collateral calls on European debt trades, raised the possibility of removing the transactions from central clearinghouses designed to reduce risk, according to a contingency plan drafted weeks before the firm’s bankruptcy.
The 23-page “break-the-glass” plan prepared by the broker’s treasury, finance and risk divisions at the request of the board of directors said the bets on European debt were “the biggest draw on cash” as the company confronted a possible credit crunch, according to a copy obtained by Bloomberg news… Full article: Source
Two firms flourish in frenzied MF Global aftermath
From Reuters.com: The mad rush to move client money out of MF Global Inc. after its collapse left two firms with the bulk of customer accounts, while other brokerages emerged with only minor gains from the chaos of carving up a multibillion-dollar business.
The process, according to interviews with more than half a dozen industry executives, was a scramble: a patchwork of urgent phone calls, emails, "handshakes" and news gleaned from press reports read by executives who were asking - and being asked - to take on MF Global customers during a month-long effort to t...................... To view our full article Click here
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