Hmm, I just found out from the Forex Peace Army forum that MG Global (a very big broker) has just filed for bankruptcy this Monday. I totally missed this one.
“Chapter 11 bankruptcy is for reorganization. The SIPC (Securities Investor Protection Corp.) is suing to force MFGlobal into liquidation. It looks like liquidation is happening.
MF Global isn’t a small company with a few thousand retail forex traders. It is a worldwide financial firm offering a broad range of trading capabilities. This is the biggest financial firm to go under since Lehman Brothers collapsed in 2008.
There are accusations of debt levels being disguised to make quarterly reports look better. There are lawsuits linking it to Ponzi schemes. There are allegations of money missing from some segregated accounts.
This story is still developing.”
MF Global’s press release for bankruptcy filing
Traders accounts may face margin calls
Wall Street Journal reports possible hiding of debt levels
Possible insider trading of MF Global Bonds
CNBC’s advice for people who invested with MF Global
FPA Review Page for MFGlobalFx
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November 6th, 2011 at 1:29 pm
Ponzi schemes…. It’s like Bernard Madoff
November 7th, 2011 at 12:41 am
I know eh. This is some crazy stuff. Makes one wonder if there are any other big brokers that are about to implode like this one.