MF Global went bankrupt on Halloween and six weeks later, no one knows nothing. Well, not exactly.
We know the firm’s segregated funds weren’t so segregated after all. Maybe $600 million. Probably closer to $1.2 billion. Definitely no surprise if it turns out to be an even greater amount.
We know confidence in the futures trading industry is pretty well shot.
We know Jon Corzine’s bearded head on a platter would make a wonderful last-second gift for many, many investors, brokers, managers, and advisers the world over.
But we don’t know what’s next.
The government and regulatory agencies have finally mobilized after hemming and hawing for weeks but the damage is done. We want answers and there are apparently none to give. Solutions will not be had for the time being, leaving those affected by Corzine
betting it all on black and his ego stuck in the resulting muck with no way out.
$600 million, $1.2 billion, whatever it may amount to, it will never truly and accurately represent the losses accumulated this last month and moving forward. No subpoena can rebuild the extreme loss of confidence in our industry or erase the fact the system found a way to fail.