The financial collapse of MF Global: case study and case analysis

This thesis discusses the causes of the bankruptcy of MF Global, which was one of the largest futures and commodity trading companies in the U.S. The first chapter is a case study. This chapter is fundamentally based on a staff report by the U.S. House of Representatives and an investigation report by Freeh, the trustee regarding MF Global’s bankruptcy. The case study consists of ten components such as the company’s background, the business industry, and the actual facts in temporal sequence until October 29th, which is two days before the company filed for Chapter 11. The second chapter in this thesis focuses on an analysis of several viewpoints of MF Global’s business and activities, such as the company’s structure and performance. In addition, the analysis includes alternatives as what the company could have done before declaring the bankruptcy and a recommendation that the company’s control should have been taken over by other financial companies rather than being handled by MF Global itself. The case analysis ends with a conclusion including lessons learned, which discusses how to prevent future illegal activity such as using customer’s funds and how to monitor high risk transactions internally and externally.