Monday, January 30, 2012

MF Global: Vaporize is the new banking term for stealing

The trustee for the MF Global bankruptcy has coined a new term to describe the theft of customer money and accounts.  Instead of using the criminal term stealing, or the legal term re-hypothication, the word Vaporized is being given by court appointed trustees for the whereabouts of private accounts and customer cash.

"As the sprawling probe that includes regulators, criminal and congressional investigators, and court-appointed trustees grinds on, the findings so far suggest that a "significant amount" of the money could have "vaporized" as a result of chaotic trading at MF Global during the week before the company's Oct. 31 bankruptcy filing, said a person close to the investigation." – Wall Street Journal

TO what end MF Global's actions and the subsequent court findings may have for future brokerage firms is uncertain at this time, but the old axiom of, "if you don't hold it, you don't own it' works everlastingly.


Post a Comment