In 1991, Metallgesellschaft’s U.S. subsidiary MG Refining and Marketing ( MGRM )
nearly drove Metallgesellschaft into bankruptcy through an ill - fated hedging strategy in crude oil futures .
MGRM had arranged long – term contracts to supply U.S. retailers with gasoline, heating oil, and jet fuel .
Many of these were fixed – rate contracts that guaranteed a set price over the life of the contract.