MF Global Case Essay

2366 Words Jan 14th, 2014 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
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He wanted to prove that he still was a great trader, and that he had not made a colossal mistake.
Finally, according to the virtue theory of ethics, Jon Corzine was being unethical by being dishonest and having no record of where the money was coming from and where it ended up going. He also did not show any self-control in investing such huge amounts of money and basically committed fraud.
3. Research, identify and discuss at least three reasons for the perception that the financial sector may be more unethical?
The first reason for the perception that the financial sector may be more unethical is because of all the financial scandals the public has heard of since the late 1990’s. The watershed event that brought the ethics of finance to prominence at the beginning of the twenty-first century was the collapse of Enron Corporation and its accounting firm Arthur Andersen. The many financial scandals relayed by the media brought into focus the necessity of changes in the corporate finances; however, it also brought the perception of an unethical financial sector. The financial sector is big and extremely profitable; Human nature does not trust financial advisors who work with large amount of money and perceive them as greedy and selfish.
Another reason why the public might perceive the financial sector as more unethical than others is the many conflicts of interest faced by the “gatekeepers” in the business context. “Gatekeepers”—attorneys, auditors,…