Wednesday, December 14, 2011

Fed Concerned Over MF Global's Internal Controls

FT reported the NY Fed approved MF Global's status as a primary dealer, despite concerns over the investment bank's internal controls.  A visit by MF Global CEO Jon Corzine helped grease the skids for approval, which came in February 2011.  Eight months later MF Global declared bankruptcy.

The Federal Reserve stated primary dealer status is not a Good Housekeeping Seal of Approval.