IB loses $28 million buying MF Global Stock

Discussion in 'Interactive Brokers' started by western, Nov 8, 2011.

  1. the more I hear about this the more I think Mr. P should stick to his knitting ,and stay away from the turds others leave behind.
     
    #41     Nov 17, 2011
  2. momntum69

    momntum69

    Why does this matter to IB customers. Our accounts are insured, or an I missing something.
     
    #42     Nov 18, 2011
  3. Nice reference but he wasn't talking about Bluestar in that phone call.
     
    #43     Nov 18, 2011
  4. Actually, if MF Global did not commit fraud, then IB would have gotten a great deal since the brokerage according to yahoo finance was trading below book value. They would have gotten all of the customers, and done really well. IB is actually the same as MF Global in that it is a brokerage. So the assets are the customers. The problem with MF is that they used customer accounts to cover an insane 40 - 1 margin bet by the CEO on European debt. If MF Global just invested the funds with no margin for 1 year, its actually possible they would not have lost any money. If the CEO authorized the stealing of client funds to cover their bad bets, he should go to jail and have some of his money he made as CEO taken from him to repay customer accounts. He destroyed the company.

    Total Cash (mrq): 36.72B
    Total Cash Per Share (mrq): 221.75
    Total Debt (mrq): 20.46B
    Total Debt/Equity (mrq): 1,501.24
    Current Ratio (mrq): 1.05
    Book Value Per Share (mrq): 7.33
     
    #44     Nov 18, 2011
  5. Options12

    Options12 Guest

    Which IB affiliate bought the $28 million worth of MF stock in October?
     
    #45     Dec 14, 2011