New Report Points To MF Global’s “Unlawful” Mistakes

If there is one commonality among all the major financial disasters of the last twenty years it is that improper non-cleared derivatives management has overwhelmingly been involved. As a July 3 New York Times editorial bravely pointed out, the “heightened vigilance of derivatives in particular” is a familiar issue that continues to remain a source of concern. But today is a moment in history where losses among hedge funds and banks who improperly managed their derivatives exposure somehow has become pedestrian. After Long Term Capital Management in 1998, followed by Enron, and ultimately Bear Sterns and Lehman Brothers that led to…