Accounting Backfired at MF Global

http://www.nytimes.com/2012/06/08/business/mf-global-case-exposes-weakness-in-accounting-rules.html?_r=1

Now there is another example at MF Global, the brokerage firm that Jon Corzine ran into the ground.

The accounting maneuver allowed MF Global to buy bonds issued by European countries and book profits the same day. That is the rough equivalent of a farmer’s booking profits as soon as he plants the crop.

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