Bucks Blog: Lessons for Investors in MF Global’s Collapse

Customers of the bankrupt commodities brokerage firm MF Global have not had an easy time since the firm collapsed on Oct. 31. Some customers’ commodities trading accounts have been transferred to other firms, though not the full value. And those who had securities accounts or who held cash in their accounts have not seen any of their money yet.

More worrisome is that the court-appointed trustee has reported that $1.2 billion appears to be missing from clients’ accounts, possibly because the firm used some of its customers’ money to meet its own obligations in its last days.

If it is true that the firm violated the rule requiring that customers’ money be segregated from the firm’s, it raises the question, Paul Sullivan writes in his Wealth Matters column this week, of whether investors’ money is being properly protected — not only at commodities brokerage houses but at other types of firms.

Paul spoke to several investment advisers who now tell their clients to do extensive research on any firm where they’re planning on putting their money. But one piece of advice they now give is an old one: don’t put all your eggs in one basket.

Are you one of MF Global’s customers who has been hurt in the fallout? And even if you are just watching the case unfold, do you have any advice for your fellow investors?

Article source: http://feeds.nytimes.com/click.phdo?i=8ff60a1ea562ebcc4c67ac75b600e606