CNBC Update - Tracking The Missing Funds From MF Global
Runs 2 minutes. Update from about an hour ago. Comments from the CME and CFTC.
Read more here:
Excerpt:
It's a common refrain on CNBC: There's too much regulation and Dodd Frank is killing the banks. But if MF Global's demise shows anything, it's that rules are sometimes necessary. Since MF was a broker dealer, and not a bank holding company, it was able to skirt recent regulations designed to rein-in risk.
"Management was running MF as if it were 2007," said Dick Bove. "And obviously the result was not great. MF's collapse validates Dodd Frank."
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Excerpt:
We’d expect an FDIC or SIPC type vehicle to be soon announced, as confidence in markets must be kept whole. What we worry about is the CME Clearing Members Guarantee fund not being liable due to fraud, and the government having to step in once again as a final back stop.
Nov 1, 2011 at 1:19 PM
Reader Comments (4)
All of this begs the question: since LEH and MF are proven liars, what credible evidence is there that the Fed's other primary dealers haven't engaged in exactly the same abuses as their deceased counterparts? After all, a repo 105 transaction requires 2 parties. On what basis are we to believe that all other PD's are just hunky-dory?
This is a zero sum game, and our losses will be the Rothschild's gains. Do we accept abject slavery or do we cut off the head of snake? Greece may decide for us, soon.
99%
TOO BIG TO FAIL!!
During the lessons the Director was concerned about the mortgage market and wondered what I though would happen in the event of a massive default. I gave him the correct answer validated in the history of the events.
The government had to pay. They would pay. They would fleece the taxpayer to pay. So, sure enough Paulson runs to Congress and extorts $800 billion using threats of financial Armageddon he needed the money in a week. Sure enough as soon as his dirty English teacher's hands get hold of the cash, he is in Beijing within 24 hours. One week later, the Central Government announces a $550 billion dollar infrastructure project to lesson the economic pain of the coming downturn.
I guess the Chinese told Paulson and his gang they had better pay up on the derivatives the Chinese purchased to hedge their massive government bond position or they would let the American public know the Communist Chinese just came into a fortune thanks to the incompetence and sheit for brains of Paulson and his crew. Now faced with paying up, and keeping it quiet or facing an angry American nation with pitchfork and torches, it was an easy decision for Paulson to make.
We must ban all derivatives created after 1989.
Then disgorge Wall Street of the trillions of dollars they made in commissions and bonus's before walking away rich and letting the taxpayer pay for their sins.
The government is rogue, top down, bottom up and inside out. The ratings agencies, SEC, the regulators were all in on it. The are traitors to their profession and traitors to their country. They need to be dealt with in the Chinese style; namely, a quick and fair three month trial. Upon reaching a guilty verdict they will receive one bullet to the head and the bill for the bullet will be delivered in military honor guard fashion to the family for collection of the cost of the bullet. No golf courses, no TV, no delays, no appeals taking things out 10 years. It's insult to injury to let these criminals live in a prison costing the tax payers $75,000 a year. Let's import Chinese justice and just shoot the bastards.
What an exceedingly interesting and well-written post. I can't believe it's escaped my attention for this long.
Do you mind disclosing what it is you do for a living? (If I may be so bold; I meekly serve an officer of the court.)