Nobody downloaded yet

Corporate malfeasance: MF Global - Essay Example

Comments (0) Cite this document
Summary
Title: Corporate Malfeasance: MF Global Name: Course: Tutor: April 4, 2013 Table of Contents Introduction…………………………………………………………………………………… 2 Opinion Statement………………………………………………………………………………2 MF Global’s Fall: Early Misdeeds…………………………………………………….3 Jon Corzine………………………………………………………………………………
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.7% of users find it useful
Corporate malfeasance: MF Global
Read TextPreview

Extract of sample "Corporate malfeasance: MF Global"

Download file to see previous pages Introduction MF Global, a future and options broker, filed for bankruptcy protection on 31 October 2011, marking an end to its frantic effort to stay afloat, and signaling the end of a giant company whose bankruptcy became the eighth-largest in the history of U.S.i The company sank under a trail of impropriety, illegality and shady dealings that were so oily, that the FBI, regulators and a myriad of other investigators were sucked into the investigation.ii Allegation of financial malfeasance followed immediately the bankruptcy was filed, with claims of missing client funds, with a cash shortfall as high as $700 million in the client account. The regulators are on record saying that the company had broken a cardinal rule that forbids companies from mixing client money with its own. 2. Opinion Statement 2.1. MF Global’s fall: Early misdeeds MF Global’s woes can be attributed to its leadership. The management, led by the CEO Jon Corzine made a series of investment that were highly risky, without undertaking measures to mitigate the risks. Therefore, the beginning of MF Global’s woes can traced to the day Jon Corzine was appointed its CEO. At the time of his appointment in March 23, 2010, the company was worth less than $ 1.5 billion, and therefore brought in somebody who would help it to rejuvenate. The company used to make money through the commission it received from its customers, and also by investing its customer’s deposits and pocketing the interest. Upon his appointment as the CEO, Corzine embarked aggressively on a European strategy whereby he invested heavily in sovereign debts of countries such as Portugal, Italy, Ireland and Spain, which were then thought to be super-safe.iii However, these debts were riddled with a lot of uncertainty, uncertainty that made their yields to exceed that of the U.S treasuries. 2.2. Jon Corzine. Perhaps the greatest mistake by MF Global was the appointment of Jon Corzine as its CEO. According to a postmortem report by the bankruptcy trustee, he deserved much of the blame for the firm’s demise, with the report mentioning his name adversely 284 times, with a conclusion that he had led the management into a negligent running of the business.iv He was an over ambitious man, former governor and senator of New Jersey. Corzine literally ran the company alone, making all the decisions on matters affecting the company contrary to the cooperate governance requirements. For instance, he assumed the role of the CEO and head trader, which was contrary to canons of risk management that requires that the two posts should be separated. He was not contented in remaining in the office and make executive decisions only, and most of the time he was on the trading floor directing things. He is said to even leave meetings in the middle to rush and see the prevailing prices in the market floor. To add, he was the greatest proponents ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Corporate malfeasance: MF Global Essay Example | Topics and Well Written Essays - 2500 words”, n.d.)
Retrieved from https://studentshare.org/law/1404253-business-law
(Corporate Malfeasance: MF Global Essay Example | Topics and Well Written Essays - 2500 Words)
https://studentshare.org/law/1404253-business-law.
“Corporate Malfeasance: MF Global Essay Example | Topics and Well Written Essays - 2500 Words”, n.d. https://studentshare.org/law/1404253-business-law.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Corporate malfeasance: MF Global

CORPORATE AND GLOBAL STRATEGY

...? CORPORATE AND GLOBAL STRATEGY Table of Contents Executive Summary 3 Introduction 4 Business Strategy 7 Internal Analysis 7 External Analysis 12 Evaluation of Strategy 16 Conclusion & Recommendations 17 References 18 Executive Summary Business strategy is often referred to as a process and continues along with the business. Nevertheless the strategy of a company needs to be reviewed after a certain interval of time, so that the current strategies meet the changing needs of the customers and matches the changing business environment. By practising this, the probability of a firm to get success in the market place increases to a large extent (Stonehouse and Houston, 2012, p.1). In this context of the study, HSBC has been chosen... Power of...
14 Pages(3500 words)Essay

Global Corporate Strategy

...changed too. The merger which took place in 2004 between two companies created a global leader in the airline industry. Though the merger was opposed by the analysts and others however over the period of time, merger has proved as one of the successful mergers in history of airline industry. This was despite the fact that industry trends clearly suggested for formation of strategic alliances rather than entering into any merger. The merger became successful because both the firms were critically able to utilize their core competencies and dynamic capabilities besides achieving the synergies. There have been many factors which created the overall synergies for the new firm to develop itself into a leading...
4 Pages(1000 words)Essay

MF Global

...? MF Global MF Global As a commodities brokerage firm, MF Global provided exchange-traded derivatives such as futures andoptions. It was a well-established firm that was on top of its game before its shocking collapse through issues relating to liquidity problem and large fines. This collapse came in the year 2008 and 2009 where the firm was hit with fines of over 10 million U.S. dollars. In late October of 2011, the organization faced a financial meltdown due to improper transaction of funds from their customer accounts to cover some of their debts. The executives by the end of that month made it official that over 700 million USD had...
5 Pages(1250 words)Research Paper

Corporate and Global Strategy

...Running Head: CORPORATE AND GLOBAL STRATEGY Corporate and Global Strategy in Harvard Style by Using Ellis & Williams 4Cs framework (1995, p.107), analyse the global automobile manufacturing industry in 2007. The answer should address the following issues: Are the industry's products truly 'global', i.e. the same products in all markets Are the industrys products becoming more or less global What are the key pressures facing MNEs in the automobile industry today And also refer to the macro-environmental analysis for question one the Global Automobile industry. Like any other industry in the current global environment, the global automobile manufacturing industry has undergone rapid transformation due to integration of economies... in foreign...
13 Pages(3250 words)Essay

Phosphoaspirin (MDC-43) a novel benzyl ester of aspirin, inhibits the growth of human cancer cells

3 Pages(750 words)Essay

The global recession and workplace malfeasance

...The Global Recession and Workplace Malfeasance Workplace malfeasance does not result from the economic downturns and company layoffs as seen in our case. Reports reveal that the global recession has claimed many victims in many countries, many lost their jobs and for those who remained employed their working hours is reduced, and their pay cut. This pay cut has led to psychological and financial pain to employees but it is not evidenced that it has caused them to engage in wrongful illegal acts in their work place such as sabotage, violence, or even theft. The frustration caused by the joblessness cannot influence those with the opportunities to...
2 Pages(500 words)Essay

Malfeasance: appropriation through pollution

...Malfeasance: Appropriation through Pollution Malfeasance: Appropriation through Pollution by Michel Serres talks about the correlation existing amid nature and culture in the current world. Seres is a French philosopher who is interested in keeping the earth clean from pollution; hence decided to write a book to enlighten the human beings on the significance of being careful when avoiding pollution at all cost (Serres, 1-89). For instance, some of the types of pollution he advises man to avoid include; chemicals resulting to emission of toxins on the earth surface, mental pollution, which is as a result of hyper-consumerist culture. It is significant to note both types of pollution; hard and soft, are...
3 Pages(750 words)Book Report/Review

MF Global

...does not really conduct an investigation as might be supposed. Rather, it is just a way to identify any fraudulent transactions. The auditor traces each transaction in the statements for accuracy. Their duty transcends the ledger records in looking for fraudulent transactions in the financial statements. Any form of inconsistency in the financial statements can therefore help towards uncovering fraud in the organization (Haas, 2012). 2) Indeed, there is always a major issue regarding the responsibility of corporate CEOs on the financial activity of their organizations. In the case of MF Global, it was realized that several issues relating to accounting partly accounted for the...
5 Pages(1250 words)Assignment

Global corporate marketing strategies

...the global operating standard in terms of accounting and corporate governance reforms. The large commercial banks like RBS need to follow an increased disclosure requirement in the auditing standard in order to be able to list in public. Recently, riots in China have created an unstable political condition. This has led to foreign companies becoming apprehensive about investing. However, strict measures have been adopted by Chinese Government to restore a safe environment for the investors in the country. Economic The Chinese economy which was reformed and was transformed into a market oriented one since 1978. This economic reform has helped in promoting an environment which has positively affected the...
8 Pages(2000 words)Essay

GLOBAL CORPORATE STRATEGY

...Global Corporate Strategy With the continuous changes in the business environment, organizations are being forced to respond to these changes in various ways. In the high-tech industry, growing complexity has necessitated global collaboration and integration. Nokia and Microsoft took this route in 2011 when they formed a strategic alliance. The strategic alliance would enable Nokia to use Microsoft Windows Phone OS as its primary operating system in its high-end smartphones. Nokia entered into this alliance to try and regain its declining share in the global smartphone market after the entry of new rivals especially Google and Apple Inc. Google and Apple introduced...
13 Pages(3250 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Corporate malfeasance: MF Global for FREE!

Contact Us