Essay on MF Global Case

2379 Words Nov 15th, 2013 10 Pages
Assignment Three
MF Global History:
MF Global was founded in the late 1700’s by James Man. It was a pure cash commodities firm that dealt mostly with the trade of sugar and molasses. ED&F Man, as it was known when it was founded up until the late 2000’s, mainly traded pure cash commodities until the late 1970’s. They then started to trade futures and other securities as futures market became more mechanized with the use of the internet. This made for a time of great growth and expansion and in 1994 they listed on the London stock exchange with a total of 650 employees. They acquired offices in Tokyo, Australia, the United States, and London. They remained this way as ED&F Man until 2007 when the company split into two firms. MF Global
…show more content…
They provide a source for rules from which we can determine how professional ought to act. These professions can also be understood as intermediaries, acting between the various parties in the market, and they are bound to ethical duties in this role as well. “Gatekeepers” are said to have fiduciary duties—a professional and ethical obligation—to their clients, duties that override their own personal interests. However, many of these professional intermediaries are paid by the businesses over which they keep watch, and are also employed by yet another business. Therefore, conflicts of interest arise. For example, as long as auditors are paid by the clients on whom they are supposed to report, there will always be an apparent conflict of interest between their duties as auditors and their personal financial interests. These conflicts are a good enough reason to make a change in how public accounting works, but it also gives the perception of unethical behavior to the public.
Also, another reason why the financial sector might be perceived as unethical is the issue of inside trading that is becoming more and more heard of by the public (for example the prosecution of Martha Stewart). The definition of insider trading is trading by shareholders who hold private inside information that would materially impact the value of the stock and that allows them to

Related Documents