Friday, February 29, 2008
MF Global, the commodities brokerage firm, accused one of its traders, Evan Dooley, of making unauthorized trades on early on Wednesday that resulted in a $141.5 million loss for the firm. Dooley bought as many as 15,000 wheat futures (about 10% of the market) a month. The firm had deactivated its electronic controls, intended to prevent unauthorized trades, for Dooley because the controls slowed down transactions. NYTimes, Trader Accused of Betting Money He Didn’t Have; WSJ, Safety Net Breaks Again.