MF Global Gave Bonuses While on the Brink of Bankruptcy
Wait until Occupy Wall Street hears about this.
If any further proof were needed that some corporations live on a completely different planet with completely different rules to the rest of the world, reports have emerged that MF Global (NYSE: MF) paid out bonuses hours before going bankrupt.
This, while there are MF Global customers who still can not access money held by the broker.
It could not be more immoral, and is completely unjustifiable. According to the Telegraph, MF UK business administrator KPMG has closed less than half of the company's open positions in the past week. “The accountancy firm said there were 1.61m open positions when MF Global collapsed on October 31. Yesterday, KPMG said it had managed to close 650,000 of these by Friday.”
The story says that Richard Fleming, joint administrator, said: "Good progress is being made and we are working incredibly hard to deal with clients as quickly and efficiently as possible. This is a complex process where we are helping clients get clarity on their positions if they have been closed down or, where possible, assisting them with the transfer of trades."
But the question remains, why should anyone get a bonus when a company is being run into the ground? We saw this with the banks that were bailed out. Why do people get a bonus for doing a bad job?
Let us know what you think.
(c) 2013 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.