Many were hoping that the weekend would bring some clarity to the MF Global situation. Unfortunately, things are, if at all possible, more muddled than ever. While sentiment soared upon learning the CME had brokered a deal that would unlock some of MF Global client funds, as we pointed out last week, the rejoicing was […]
To say the MF Global situation is a mess may be the understatement of the century. What began as an excuse to extol the segregated account’s safeguards against an FCM stock slide as MF Global shares lost 70% of their value in a week rapidly morphed into a full-fledged industry disaster as bankruptcy papers were […]
We’re not sure what Corzine thought testifying in front of Congress would be like. You’d think that his experience in Congress and as a Senator would have prepared him. We actually thought he’d simply take the fifth. Instead, as we pointed out last week, we got an exercise in plausible deniability. It might have worked- […]
It’s time to get excited! They found the missing MF Global money! Hate to burst your bubble, but you may want to wait a minute before you jump for joy. Here’s the background… CFTC Commissioner Jill Sommers, who was put in charge of conducting the MF Global investigation after Gary Gensler recused himself due to […]
A piece snuck up on Reuters last week outlining some of the points being held at the CFTC roundtable on how to better protect customer funds in light of the MF Global bankruptcy. There are some good points here, several of which echo what we’ve been saying for months: the industry as a whole needs to step up and restore MF clients funds in the name of saving the industry.
CFTC chairman Gary Gensler’s testimony for the Senate Banking Committee focused on the swaps regulation debate, but his comments could be important to another high-profile controversy: the MF Global bankruptcy.
While we were busy writing our newsletter Monday and keeping tabs on whether the markets would keep May’s performance going, the Trustee for the MF Global case released his 275 page “Investigation Report.” You can download it here.
It’s obviously a long read, though the meatiest part of the report starts on page 68, if you’re up for it. That being said, in our opinion, this report is pretty damning- almost breathtakingly so. From Corzine to O’Brien to JP Morgan to under mentioned actors like BNY Mellon, this catastrophe was not a whirlwind crisis that caught everyone off guard. Those in the know saw it coming for miles, but absolutely no one did anything to stop it.
The story that has emerged, while well known to those close to the situation, bears repeating. Let’s break down this behemoth of a document.
At this point, many of you may have heard that FCM PFGBest has been put on liquidation only by the NFA. Here’s what we know so far.
The NFA has released evidence indicating a shortfall in customer segregated funds at PFGBest. To say we’re angry, frustrated or disappointed doesn’t begin to cover it.
In light of the catastrophe unfolding at PFGBest, what plan does our government have for futures regulation? Budget cuts, if you can believe it.