4 ms·
Merrill Lynch Is Fined for Doing Nothing
- powera 10y agoThey're not fined for doing nothing, they're fined for willfully evading the requirements for having capital on hand through what amounts to magic tricks.
- hobs 10y agoRight, the headline might be read as "Fined for doing nothing (When they were supposed to be doing something and instead took insane action to get out of their responsibilities while also paying off their friends to the tune of almost a million a person)" Doesn't get those clicks though.
- hga 10y agoDoing nothing? This is essentially what MF Global did (https://en.wikipedia.org/wiki/MF_Global https://en.wikipedia.org/wiki/MF_Global), except for the minor detail of then putting their customer's cash in for sure money losing investments, and then doubling down. Amazingly, it is claimed that MF Global's US customers were made 98% whole, after of course a long delay, and overseas customers 74% whole, see the end of the introduction of the Wikipedia article. But a near total loss was expected for a long time, and no doubt more than a little arm twisting was involved in retrieving the money, what we believed to be the denouement of MF Global was a grave threat to futures trading in the US.