RPT-INSIGHT-Risk, lax oversight riddle MF Global's past
November 11, 2011 at 07:16 AM EST
Parsing the earlier litigation for clues about MF Global's business practices is tricky because alleged malfeasance by an account holder -- as was the case with Cosmo and several other traders -- doesn't necessarily imply liability for the brokerage. A brokerage serves as a vehicle for trades, and as long as the client puts up the money, there's no legal basis to deny the trade.