What the F$$K - MF Global disappears segregated funds?

In Canada brokerages are "insured" or insure their clients money via their membership in the Canadian Investor's Protection Fund the CIPF.
Fund resources. CIPF is funded by its Members.

The CIPF Board sets the size of the fund to be maintained for the client assets it protects. It also sets the quarterly Member assessment and the policy on how monies in the fund are to be invested.

Fund size: The Board uses a model to assist it in setting the fund size. The model weights client assets for the relative risk of the Member that is responsible to the customer for those assets. Members with strong internal controls, profitability and capital will have lower risk scores.

Assessments: The model is also used to determine the amount of the quarterly assessment that is allocated to each Member. Members with relatively more client assets, or a higher risk rating, will pay a larger percentage of the total assessment. CIPF also levies an additional assessment on Members that have not complied with the industry rule that requires them to maintain positive capital at all times.

Investment Policy: All investments must be in highly liquid Canadian or provincial government guaranteed debt obligations that mature over an 11-year period.

Other resources

For liquidity purposes the Fund has two lines of credit provided by two Canadian chartered banks totalling $100 million.

The Fund has also arranged insurance in the amount of $116 million for any one loss and in the annual aggregate in respect of losses to be paid by CIPF in excess of $100 million in the event of Member insolvency.

To put this into context:

The losses at MFGLOBAL are in excess of $600 million.... Poof!

The term for this is "taking a haircut" the investors must take a haircut....

Is anybody upset about this?