ipl-logo

MF Global Bankruptcy Case Study

1546 Words7 Pages

The company had a global footprint with offices in New York and Chicago, Bermuda, Toronto, London, Paris, Mumbai, Singapore, Sydney, Taipei, Tokyo, Hong Kong and Dubai. It operated on more than 70 exchanges, and was the largest single broker on most of the leading platforms including the CME and Eurex. It was announced on Nov. 2, 2011 that the MF Global bankruptcy case had been assigned to U.S. Bankruptcy Judge Martin Glenn in Manhattan. MF Global Inc.’s case docket was opened in bankruptcy court after being transferred from U.S. district court. Series of events of MF Global * July 2007: Man Financial, the brokerage division of U.K. hedge fund manager Man Group plc, is spun off in an initial public offering at the height of the boom in derivatives trading and renamed MF Global. * February 2008: A trader in MF Global’s Memphis, …show more content…

25, 2011: MF Global reports a wider loss for its fiscal second quarter ended Sept. 30. The disclosure of the financial results, which were pushed out early in the wake of the Moody’s downgrade, helped spark a 48% stock drop that day. By the end of the week, MF Global had lost more than two-thirds of its market value. * Oct. 31, 2011: MF Global filed for bankruptcy protection, after a weekend of negotiations failed to lead to a sale of at least part of the company. * Jan. 10, 2012: Edith O'Brien asked for the MF Global case's first immunity agreement. The New York Times reported that the FBI had named O'Brien "a person of interest" in the investigation, and she was reportedly the person who pulled the trigger on a $200 million transfer of customer funds to JP Morgan Chase on the eve of MF Global's bankruptcy. * Jan 12, 2012: about 100 MF Global customers gathered at the New York Marriott Downtown hotel to hear James Giddens - the trustee appointed to liquidate MF Global - say that MF Global Inc. had distributed about $3.8 billion thus far and had about $1.5 billion under its control, while there was still $1.2 billion

Show More
Related

Who Is Vicki Gord's Argument For Money Laundering?

174 Words | 1 Pages

Vicki Gord is the owner and President of Thunderbird Trading Post Inc., Ms. Gord established the account March 05, 2004, with a deposit of $100,000.00 with no additional contributions and with interested earned the current account balance is $144,711.00. In 2005 US Bank Corp notified AGL that Vicki Gord had been indicted for money laundering, as an owner and operator of a smoke shop was in connection with a scheme to import and obtain contraband cigarettes from China, and elsewhere, and sell them to the public at large without paying applicable State of Washington taxes. Based on an internet search client plead guilty to trafficking in contraband cigarettes and stipulated in their plea agreements to the amount of the State of Washington’s

Read More

Goodwin Wealth Management Case Summary

534 Words | 3 Pages

The American sub-prime mortgage crisis and asset-backed commercial paper (ABCP) crisis happened in Canada had huge negative impacts on the financial industry. With the bankruptcy of several major banks in North America, investors lost their faith in financial institutions and were not willing to invest their assets to those financial institutions because of extremely high risks. As a competitive player in the industry, Goodwin also faced this threat and had poor performance. Internal Analysis Strength: Goodwin was a well-diversified company with six divisions in different but related market segments.

Read More

Eileen Foster Case Summary

428 Words | 2 Pages

Eileen Foster was the Executive Vice President of Fraud Risk Management at Countrywide, and later served in the role of Senior Vice President of the Mortgage Fraud Investigation Division at Bank of America after the two companies merged (Foster, n.d.). It was her responsibility to investigate mortgage origination fraud and reporting suspicious activity to regulators and the company’s Board of Directors. After several years of seeing a lot of suspicious activity and blatant acts of fraud she found that the company was playing party to this activity. Any employee who reported fraud and wrongdoing to Employee Relations were being transferred, demoted, harassed or terminated. When Foster reported her concerns to Countrywide’s Internal audit to investigate, the company not only chose to conceal her allegations from Bank of America, but it also directed employee relations to investigate Foster for wrong doing.

Read More

TCJA2017: Impact On The MVA Of Domestic Companies

401 Words | 2 Pages

Hi Jessica, I agree with your statement that the TCJA2017 tax reform had a more favorable impact on the MVA of domestic companies than the MVA of multinational companies. Domestic companies seemed to benefit from it the most. Not only does it lead to higher earnings and increased cash flow, it also strengthens the motivation for companies to invest more (Tax Policy Center, 2020). A high MVA can also lead to a company having better chances for surviving. Other than that, the TCJA2017 also played a part in reducing tax rates for individual income as well.

Read More

Kino Border Initiative

433 Words | 2 Pages

The fund was established by Michael Lacey and Jim Larkin, with the money coming from a settlement from Maricopa County, Arizona. The county 's sheriff illegally arrested Lacey and Larkin without cause and the Maricopa County Attorney’s Office had no right to the issue grand jury subpoenas that put the two in

Read More

Amy Elliot In Salinas

669 Words | 3 Pages

1. What are the legal, ethical and management issues in the Salinas situation? (90-110 words) Swiss banks have secrecy laws put in place to protect their clients’ accounts from investigation without a legal mandate, while U.S law enforcement has legal authority to access individual accounts to investigate criminal acts. Elliott has an obligation to her client Raul Salinas, brother of Mexican president Carlos Salinas. The president would have countless political enemies

Read More

Best Buy: Sound Of Music Inc.

328 Words | 2 Pages

The company got bigger and more popular and in 1987, it gained a spot on the listing of the New York Stock Exchange. The company had lots of ups and downs with their stocks and they tried very hard to

Read More

Buffett Case Study

1327 Words | 6 Pages

As for other tradeable assets, since MEG eliminated its dividend in 2009 and reached a nearly 100% debt/total capitalization ratio in 2011, we speculated that MEG had already used up its non-core assets to lift its financial

Read More

Financial Case Review: The AIG Scandal 2005

703 Words | 3 Pages

The AIG Scandal 2005 started when AIG management was issuing a press release describing its third quarter earnings in 2000 to the public. The report showed that the premium of AIG was significantly increasing, while its loss reserves was decreasing by $59 million. However, according to many industry analysts, along with the positive earnings, AIG in fact should show an increase in its loss reserves as well. This caused the investors of AIG suspected that AIG was drawing down its loss reserves to boost its profits. The suspicious of the investors has unfortunately led to the falling of AIG stock price from $99.60 to $93.30 on New York Stock Exchange (NYSE).

Read More

Lehman Brothers: Financial Fraud In 2008

2178 Words | 9 Pages

Executive Summary Lehman Brothers were an investment bank involved in transactions worth billions of dollars and one of the most powerful investment banks in the world. Lehman Brothers collapsed in 2008 following bad investment in the sub-prime mortgage market and used bad accounting practices called Repo 105 transactions to try and cover up the bad assets. This report sets out the use of the fraud triangle when describing the actions which led to the collapse. The pressure applied on the bank, the opportunity due to the lack of regulation to carry out the actions and the ability of the bank to rationalise their decision making.

Read More

Finance Case Study: The Wilkerson Company

895 Words | 4 Pages

Abstract The Wilkerson Company started facing declination in profits due to the price cutting on their pumps. On the contrary, while the price pumps were decreasing to record numbers, the flow controllers, which controlled the rate and direction flow of chemicals, could increase its prices without significant loss or any competitive response. Wilkerson, his controller, and manufacturing manager developed an activity-based cost model (ABC) to better comprehend the various demands that each product line makes on the organization 's indirect and support resources. Exhibit 1 showed us our operating results, Exhibit 2 showed us our product profitability analysis, Exhibit 3 displayed our product data, and Exhibit 4 was a compilation of the monthly

Read More

South Sea Bubble Case Study

1376 Words | 6 Pages

March 30 the NASDAQ was valued at 4,500 points compared to around 5,000 points at March 10. This meaning a loss of around $960 billion in just 15 trading days. Around the end of May, the NASDAQ was down to around 3.500 points indicating a loss of over the trillion dollars (http://www.nasdaq.com/markets/ipos/, 2015). With these

Read More

Case Study 1: Banc One Corporation Asset And Liability Management

1036 Words | 5 Pages

Case Study 1: Banc One Corporation Asset and Liability Management Gizem Akkan So basically, the main problem Banc One Corporation has falling share prices as it is written from a 48 ¾ to 36 ¾ in April 1993. The basic reason behind this decline is that its exposure to derivative securities. This decline in share prices raises concerns among the Banc One’s Investors as well as its analysts since they are uncomfortable with huge amount of derivative usage particularly swaps. They think they are not able to measure risks they exposed so this create uncertainity about the firm’s financial stability.

Read More

Whistleblowing System In The Film Chasing Madoff

1179 Words | 5 Pages

“Chasing Madoff”, a documentary released in 2010 portrays the way the whistleblower, Harry Markopolos, uncovered Bernie Madoff’s fraud scheme and his ten-year struggle to get the SEC to investigate. The documentary begins with an introduction to Harry Markopolos and his former coworkers Frank Casey and Neil Chelo. The three men work in finance, with investment portfolios. They were aware that in the finance industry there was much talk about an investment company making their customers high returns. Casey came across some investment information from a client of Madoff and gives the information to Markopolos to look over.

Read More

General Motors Bailout: A Case Study

994 Words | 4 Pages

General Motors is a multinational company that makes and sells vehicles and its parts. In 2009 General Motors had some financial problems. The automotive company had difficulties with their finances, as a result, the company was not profitable and was leaning towards bankruptcy. The company then reached out to the government for money to help with their situation. The Bush-led government decided to use $49.5 billion of taxpayers’ money to help General Motors out.

Read More

More about MF Global Bankruptcy Case Study

Open Document