MF Global Ripped Off Big Players Too

Individual clients of bankrupt commodities brokerage MF Global can take some cold comfort in the news that big corporations also got their pockets picked. Major corporations that used futures to hedge commodity prices through MF Global comprised a fifth of the client funds that “vaporized.” The good news is that these players have the deep pockets for class action lawsuits and the political pull to ensure regulators don’t sweep this under the rug.

I actually once considered opening a futures account with Refco, MF Global’s predecessor firm, years before it collapsed. I decided against it mainly because I’m not some heavy commodity user who really needs a hedge. There are plenty of ETFs in oil, metals, and agriculture to satisfy the diversification needs of most normal investors.

Trust is in short supply. Even big companies can’t trust their brokerages anymore. I hope these Fortune 500 victims get together and strategize some lawfare that will bury the MF Global malefactors in a big pile of . . . well, you can insert a fanciful agricultural commodity here.

About Anthony Alfidi 128 Articles

Affiliation: Alfidi Capital LLC

Anthony Alfidi is the Founder and CEO of Alfidi Capital. His firm publishes free investment research with honesty and humor.

Mr. Alfidi holds a Bachelor's degree in human resource management from the University of Notre Dame (cum laude) and an MBA in finance from the University of San Francisco. He is a life member of Beta Gamma Sigma, the academic honor society for business majors. He has been a private investor since the 1990s.

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