MF Global: Where’s the Money? Case Solution & Answer

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This Case is aboutÂ CRISIS MANAGEMENT

PUBLICATION DATE: June 18, 2012 PRODUCT #: 312106-HCB-ENG

When MF Global failed in October of 2011, it was found that $1.6 billion of segregated customer assets was lost. Safeguarding these assets was the company’s duty, and in the words of one SEC official, its “holy duty.” What’s understood about the assets that are lost is the fact that they used in other sections of the business and were chosen from the accounts of customers trading in commodity futures contract; less is understood about how it occurred. The instance describes MF Global’s operating model, the madness of its own closing days, as well as specific management choices, its regulatory supervision, allowing for an investigation of how much cash might have gone lost. (Notice: This case may be in read in combination with its company, “MF Global: Shifting Stripes” (HBS Case 312- 105), which discusses the managerial and strategic problems resulting in the company’s fall.)