After making a risky bet in a tumultuous market, MF Global filed for Chapter 11 this past weekend. Recently, the firm revealed that it had $6.3 billion of sovereign debt in troubled countries like Italy and Spain. The position was nearly five times the firm’s equity of more than a billion dollars. But how can a company such as MS Global go out and invest in something as toxic as European sovereign debt? According to the WSJ, a person familiar to the situation said FBI officials have decided to examine the discrepancy to determine if customers' money is missing. What is the importance and impact of the nation's largest financial institution collapse?
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