ANOTHER MF Global....
This is not a one-off..this is a pattern, which suggests that there are many many companies like it in the market..with NO adequate reserves.
Rochdale Said to Be in Rescue Talks After Apple Trades
Top Rochdale executives told potential investors that a trader bought $750 million to $1 billion in Apple shares last month without permission, the people said. The stock then dropped in value by a few million dollars and depleted the firms cushion against losses, the people said.
Closely held Rochdale had $3.44 million of capital at the end of last year, according to a regulatory filing.
The Apple trade is the focus of an FBI investigation as an alleged market-manipulation scheme, the New York Post reported, without saying where it got the information.
http://www.bloomberg.com/news/2012-11-05/rochdale-said-to-be-in-advanced-rescue-talks-after-apple-trades.html
Notice: The company managed to purchase, somehow, two hundred times its capital worth of stock,
a leverage ratio of (duh!) 200:1, which means a 1/2% decline in value would wipe out the entire capital book.
Obviously the Apple stock dropped wayyyy beyond the 3.4 million capital of the company, so now they will go bankrupt unless someone bails them out.
Then there is the whole story about an employee who able to make this huge boo-boo with no oversight, no permission.