Todays plunge in commodities is undoubtedly strongly linked to a "who's next?" concern by investors. One of the brokerages in the spotlight is MF Global.
MF Global Ltd., the largest broker of exchange-traded futures and options, fell as much as 80 percent in New York trading on speculation clients are pulling money and as financial shares dropped to their lowest level in almost five years.
``There are concerns that their commodities prime brokerage group customers are pulling money out,'' said Michael Nasto, senior trader at U.S. Global Investors Inc., which manages $5 billion in San Antonio. ``The customers have concerns about the financial stability of the firm.''
Spokeswoman Diana DeSocio didn't immediately return a call for comment.
MF Global, based in Hamilton, Bermuda, fell $11.85 to $5.50 as of 11:55 a.m. in New York Stock Exchange composite trading, after falling as low as $3.64. The shares are down more than 80 percent this year. [More]
This domino scenario was succinctly pointed out to me by a bond executive for the Farm Credit System at a meeting last August. But it seems even if you see it coming, it's hard to get out of the way.
First of all, you have to believe the warning.
1 comment:
Have these People not ever heard of ENRON??? Thought that was a good way to judge these kinds of decisions..hmmm.
Im not stalkin..just aint got nuttin ta do till the ground dries up some....maybe August.
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