Runs 2 minutes. Update from about an hour ago. Comments from the CME and CFTC.
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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.