MF Global Bondholders Feel Duped, With Good Reason
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April 23 (Bloomberg) -- Much has been written about the$1.2 billion that remains missing from the accounts of MF GlobalHoldings Ltd.’s customers, one of the most egregious violationsof trust on Wall Street at a time when confidence in thebehavior of financial executives is extremely low.
Less discussed -- but equally outrageous -- are the lossessuffered by bondholders who feel they were duped by MF Globalexecutives during the summer of 2011 into investing $650million. MF Global executives told these investors thateverything at the company was just fine when, in fact, capitaland liquidity were in devastatingly short supply.