PeacePlan
11-08-2011, 04:51 PM
CME Is Legally Liable For MF Global Customer Losses
We were all overjoyed to learn Monday that the money missing from MF Global (MFGLQ.PK (http://seekingalpha.com/symbol/mfglq.pk)) customer accounts had suddenly been found. (http://dealbook.nytimes.com/2011/11/04/some-mf-global-client-funds-are-found-at-jpmorgan/) One problem. It wasn't true. About $650 million is still missing (http://online.wsj.com/article/SB10001424052970203716204577019894171422870.html?m od=googlenews_wsj). Where is it? Nobody knows. The aftermath of the MF Global debacle has been a lesson for people like Fed Chairman Ben Bernanke who believe that "increased regulation" of financial firms will solve future problems. MF Global was a supposedly a "highly regulated" entity. Its regulators are the CFTC and the supposedly "self-regulating" futures exchange CME Group, Inc. (CME (http://seekingalpha.com/symbol/cme)).
But where was the CFTC and/or the CME when MF Global customer money was being either stolen or converted to other uses by company executives? According to a publication of CME Group, Inc., titled "Financial Safeguards" (http://www.cmegroup.com/clearing/files/financialsafeguards.pdf)…
http://seekingalpha.com/article/306068-cme-is-legally-
liable-for-mf-global-customer-losses (http://seekingalpha.com/article/306068-cme-is-legally-liable-for-mf-global-customer-losses)
We were all overjoyed to learn Monday that the money missing from MF Global (MFGLQ.PK (http://seekingalpha.com/symbol/mfglq.pk)) customer accounts had suddenly been found. (http://dealbook.nytimes.com/2011/11/04/some-mf-global-client-funds-are-found-at-jpmorgan/) One problem. It wasn't true. About $650 million is still missing (http://online.wsj.com/article/SB10001424052970203716204577019894171422870.html?m od=googlenews_wsj). Where is it? Nobody knows. The aftermath of the MF Global debacle has been a lesson for people like Fed Chairman Ben Bernanke who believe that "increased regulation" of financial firms will solve future problems. MF Global was a supposedly a "highly regulated" entity. Its regulators are the CFTC and the supposedly "self-regulating" futures exchange CME Group, Inc. (CME (http://seekingalpha.com/symbol/cme)).
But where was the CFTC and/or the CME when MF Global customer money was being either stolen or converted to other uses by company executives? According to a publication of CME Group, Inc., titled "Financial Safeguards" (http://www.cmegroup.com/clearing/files/financialsafeguards.pdf)…
http://seekingalpha.com/article/306068-cme-is-legally-
liable-for-mf-global-customer-losses (http://seekingalpha.com/article/306068-cme-is-legally-liable-for-mf-global-customer-losses)