Thursday, November 03, 2011

One cheer for regulator!

Hip hip hooray:
So making sure MF Global had capital to meet likely collateral calls was a good idea. Forcing MF Global to disclose its positions was also a good idea, since it is very obvious that the market regarded them as important.

What Finra did here, it seems, is create transparency and enable the market to render a judgment on the financial viability of MF Global.

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