Barry Ritholtz: The systemic risk revealed by MF Global’s collapse

Britain’s leverage loopholes provided a back door for U.S. firms such as Lehman Brothers and MF Global to “re-hypothecate” client assets — and leverage up.

As a result of MF Global’s lobbying, key rules were deregulated. This allowed the firm to use client money to buy risky sovereign debt.

6 comments on “Barry Ritholtz: The systemic risk revealed by MF Global’s collapse
  1. Flopot says:

    Is it really just a coincidence that MF Global fails just in time to save JPMorgan?

    Or is it just a case of opportune scavenging by JPMorgan?

  2. Dan says:

    Investors and bankers are the same thing, they are both attempting to make money through usury. If the whole world becomes investors and can all make a healthy 100k wage, we would all be poor as fuck devoid of anything of value whatever, as there would be no services or goods or anything of value to buy with your 100k.

  3. Al Kyder says:

    @ Flopot

    Response in manga form . Merry Xmas 🙂

  4. MEJ says:

    Erm, was it coincidence that we invaded Iraq just in time to save Halliburton?

  5. Nigel says:

    Q: Is this the portal from Hades through which all this demonic fraudulent banker bile spewed forth?
    (Sure looks like it to me.)
    Q:How many more do we have to batten shut before the drivers of hyper fraud have been choked off?
    (Central banks, money out of politics, lock up the existing crooks, firm up the regulations and the penalties surrounding these frauds …….. what else? This isn’t insurmountable is it?!!)

  6. Flopot says:

    Thank you Al Kyder!

    Presumably someone at some point is going to write the definitive account of how JPMorgan planned and conducted the takedown of MF Global. It is just that no-one seems to be stating the bleeding obvious, i.e. that the collapse of MFGlobal is not about Corzine’s incompetence and greed but rather his collusion and greed. The collapse and theft was planned.