"Jon Corzine's problematic trade was given the pseudo label of "repo-to-maturity," which in substance is a "total-return-swap-to-maturity," that embeds a credit derivative. The transaction was given the off-balance sheet treatment of the derivative it represented. Corzine was undercapitalized, and regulators and rating agencies--not to mention MF Global's board--were flat-footed. This video is from July 10, 2009."

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