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MF Global Inc.: Customer Money

 
 
gollum
 
Reply Sat 14 Jan, 2012 01:43 pm
In a bank, when a customer deposits money into his or her account, it increases the bank's holding of cash (its asset) and its deposits (its liability, the amount it owes its depositors. The bank then uses the cash in its business (e.g., makes loans).

After MF Global filed for bankruptcy, people question whether it had used customer money. Is customer money shown on its balance sheet much like a bank?
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Pamela Rosa
 
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Reply Tue 31 Jul, 2012 11:19 am
@gollum,
Fractional reserve banking
http://en.wikipedia.org/wiki/Fractional_reserve_banking

Where Does Money Come From? The Giant Federal Reserve Scam
http://open.salon.com/blog/ghost_writer_1/2012/06/27/where_does_money_come_from_the_giant_federal_reserve_scam
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