Who is responsible for theft at MF Global, and what should we do to them?

Erik writes:

MF Global has been accused of using customer’s cash improperly, by using the cash to pay off losses. Currently around $600 million is missing and I don’t think all of it will be recovered because it was used to pay off losses rather than for trades. Despite this, no one at the firm is being accused of breaking the law. I don’t understand how a firm can use unknowing customers’ cash for unapproved transactions and yet the people at the firm responsible for this are not being held accountable for their actions. I feel that their actions constitute stealing from their customers because the took the funds from their customers’ accounts without customer approval or knowledge. The people at MF Global who approved and conducted the transactions need to be held responsible for their actions. What do you think?

http://dealbook.nytimes.com/2011/11/17/mf-global-is-said-to-use-customer-cash-improperly/?ref=global

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About Mark P. Holtzman

Chair of Accounting Department at Seton Hall University. PhD from The University of Texas at Austin. Worked at Deloitte's New York Office. BSBA from Hofstra University.

One comment

  1. This article definitely caused a reaction out of me. I can't comprehend how MF Global carelessly used their client's money without getting their approval as to what they would do with it. It is as if these people gave their money away. They intended for their money to be used for trades so that they could in turn receive a profit and now their money is lost. I believe that there will be action law suits brought on these careless MF Global employees in the months to come.

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