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1) Independent auditor’s report on MF Global internal control over financial reporting
In late October MF Global went bankrupt in the blink of an eye. Customer funds in excess of $1.2 billion appear
to have been diverted for company use. The bankruptcy trustee has had trouble locating the company’s assets
because of the chaotic state of the company’s books and records. There appear to have been wire transfers made
that were not entered into the company’s accounting records.

From “Management’s Report on Internal Control over Financial Reporting” from its 10K filing with the SEC
for the year ended 3/31/2011:

“Management of MF Global Holding Ltd. Together with its consolidated subsidiaries (the
“Company), is responsible for establishing and maintaining adequate internal control over
financial reporting.”

“The Company’s internal control over financial reporting includes policies and procedures that
pertain to the maintenance of records that, in reasonable detail, accurately reflect transaction and
dispositions of assets… and that receipts and expenditures are being made only in accordance
with authorizations of management and the directors of the company; and provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition
of the Company’s assets…”

The Company’s internal control over financial reporting as of March 31, 2011 has been audited
by PricewaterhouseCoopers LLP, an independent registered accounting firm, as stated in the
report included within, which expresses an unqualified opinion on the effectiveness of the
Company’s internal control over financial reporting as of March 31, 2011.”

There you have it. No problems here, boss.