MF Global: Changing Stripes

Authors: Rose, Clayton; Dahya, Yasmin; Lee, Jenevieve
Source: Harvard Business School
Year: 2012
Company Name: MF Global
Number of pages: 31

[This document has not yet been rated] [You must be signed in as faculty to rate this document]   280 views

Abstract:

Jon Corzine became the CEO of MF Global in March of 2010. 18 months later, and in the wake of a massive trade in European sovereign debt, the firm filed for bankruptcy, the 8th largest in U.S. history. As the firm failed it was discovered that over $1.6 billion in segregated customer assets was missing. The case explores issues that may have contributed to MF Global's demise, including its business model and the competitive pressures it faced prior to and following Corzine's arrival, and the strategic and managerial decisions taken by Corzine to reorient the firm. In addition, the sovereign debt trade, created to boost earnings, is described in some in some detail.