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MF Global’s lawsuit claims PwC was wrong to advise firm to treat European-debt transactions as sales

MF Global’s lawsuit claims PwC was wrong to advise firm to treat European-debt transactions as sales

 .. PwC contends its accounting advice was correct, and that MF Global’s own decisions and strategy, driven by Mr. Corzine, caused the brokerage’s bankruptcy.

Mr. Corzine said he and others at MF Global thought the sovereign-debt investments were “attractive” and highly rated by credit-ratings firms. “We would have had a hard time calling them risky securities,” he said.

.. When MF Global failed, the firm had a $1.6 billion shortfall in customer funds that was later recovered. Prosecutors investigated Mr. Corzine and other MF Global executives but ultimately didn’t bring any charges.

.. Some counterparties withheld money due MF Global, leading to a cash crunch, he said. “I believe they’d lost trust in our financial statements, and they needed to protect their financial position.”

.. Ultimately, Mr. Corzine said, all of the risky European bonds paid off in full, as he had expected them to.