Originally Posted by brewer12345
Balance sheet is on page 4. Looks like most of the leverage was secured via repurchase agreements and the like. Actual borrowings and bonds issued were fairly minor.
So they raised $17.9B by selling repos, sold $8.3B worth of securities before they'd bought them and turned around and bought $12B in repos and $11.6B in other securities, presumably this is the Euro bet. The folks who bought the repos from MF Global presumably wanted to sell them back at the agreed higher price and....oops those European investments weren't enough to cover them. A small investor doing this would be called dumb, stupid an idiot etc.....I'm just saying.
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