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.