MF Global Case
Assignment Three
MF Global History:
MF Global was founded in the late 1700’s by James Man. It was a pure cash commodities firm that dealt mostly with the trade of sugar and molasses. ED&F Man, as it was known when it was founded up until the late 2000’s, mainly traded pure cash commodities until the late 1970’s. They then started to trade futures and other securities as futures market became more mechanized with the use of the internet. This made for a time of great growth and expansion and in 1994 they listed on the London stock exchange with a total of 650 employees. They acquired offices in Tokyo, Australia, the United States, and London. They remained this way as ED&F Man until 2007 when the company split into two firms. MF Global was the investment branch while a separate entity called the Man Group focused on asset management.
MF Global began to be a problem in 2008 when they received fines from the SEC for unauthorized trading and insufficient risk management. There were other intermittent fines until 2010 when Jon Corzine took over MF Global. Then in 2011, Corzine started to put some serious money in debt trades. They were fine at first, but as the Euro zone started to collapse, so did MF Global. After a bad earning report and some defaulted European Debt, MF Global filed for bankruptcy. When the money was being returned to the investors they found that $1.2 billion dollars were missing. The money had just disappeared.
1. Who are the MF Global stakeholders?
According to the research I’ve made about MF Global and the scandal associated with the company, MF Global stakeholders are:
Its shareholders: including the preferred stockholder private equity investor J. Christopher Flowers through his firm J.C. Flowers & Co. and all the commons stockholders with the biggest being Pyramis Global Advisors LLC, owning 8.44% common shares; Fine Capital Partners LP, 7.37%; Cadian Capital Management LLC, 6.17%; TIAA-CREF, 5.77%; Advisory Research Inc., 5.54%;
MF Global History:
MF Global was founded in the late 1700’s by James Man. It was a pure cash commodities firm that dealt mostly with the trade of sugar and molasses. ED&F Man, as it was known when it was founded up until the late 2000’s, mainly traded pure cash commodities until the late 1970’s. They then started to trade futures and other securities as futures market became more mechanized with the use of the internet. This made for a time of great growth and expansion and in 1994 they listed on the London stock exchange with a total of 650 employees. They acquired offices in Tokyo, Australia, the United States, and London. They remained this way as ED&F Man until 2007 when the company split into two firms. MF Global was the investment branch while a separate entity called the Man Group focused on asset management.
MF Global began to be a problem in 2008 when they received fines from the SEC for unauthorized trading and insufficient risk management. There were other intermittent fines until 2010 when Jon Corzine took over MF Global. Then in 2011, Corzine started to put some serious money in debt trades. They were fine at first, but as the Euro zone started to collapse, so did MF Global. After a bad earning report and some defaulted European Debt, MF Global filed for bankruptcy. When the money was being returned to the investors they found that $1.2 billion dollars were missing. The money had just disappeared.
1. Who are the MF Global stakeholders?
According to the research I’ve made about MF Global and the scandal associated with the company, MF Global stakeholders are:
Its shareholders: including the preferred stockholder private equity investor J. Christopher Flowers through his firm J.C. Flowers & Co. and all the commons stockholders with the biggest being Pyramis Global Advisors LLC, owning 8.44% common shares; Fine Capital Partners LP, 7.37%; Cadian Capital Management LLC, 6.17%; TIAA-CREF, 5.77%; Advisory Research Inc., 5.54%;