In Law360 article this week, experts assert that while MF Global Holdings Ltd.’s high-profile bankruptcy filing Monday might be reminiscent of the 2008 collapse of Lehman Brothers, the “Lehman Brothers Holdings Inc. case could provide a roadmap that will streamline MF Global’s restructuring.”
According to the article: “MF Global filed for bankruptcy after revealing it had lost nearly $192 million in the last quarter and had $6.3 billion in exposure to potentially risky European sovereign debt. On the same day of the filing, the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission said they were probing the now-bankrupt broker-dealer amid reports that hundreds of millions of dollars in customer money had vanished.”
“It is a ‘mini-Lehman,’ much like we heard the phrase ‘mini-Madoff,’” said visiting Pace Law Professor Ed Pekarek, who is assistant director and supervising attorney at the Pace Investor Rights Clinic. “I do think there are a lot of parallels between the two.”
Read the full article here.