MF Global Fallout: CFTC Orders Review Of All Futures Firms

WASHINGTON -- Federal regulators have ordered a review of all U.S. futures trading firms after hundreds of millions of dollars in client funds went missing from MF Global, a firm run by former New Jersey Gov. Jon Corzine.

The Commodity Futures Trading Commission says it wants to make sure that firms are complying with federal rules that require customers' money be kept separate from the firms'.

The CFTC also said that Commissioner Jill Sommers will lead the agency's investigation of MF Global.

There are roughly 120 U.S. firms that trade futures. The CFTC will conduct audits of the biggest firms, which include major Wall Street banks. The futures exchanges will review the rest.

Comments

[ndem]

11:10 AM on 11/12/2011

Am I the only one who thinks these guys already made their money and are now trying tos top others from doing what they were doing and made so much money at?

[bldr1bob]

04:37 PM on 11/11/2011

I thought the purpose of the CFTC and the SEC was oversight to prevent these types of occurrences. Now they're just a bunch of firemen, no offense to you firemen.

[albinoG]

02:09 PM on 11/11/2011

"There are roughly 120 U.S. firms that trade futures. The CFTC will conduct audits of the biggest firms, which include major Wall Street banks. The futures exchanges will review the rest"
LOL! They will probably start their audit in 2111, when our sun is about to implode. Absolute nonesense until the next banruptcy is declared, and the next, and the next........

[Chubbster]

09:54 AM on 11/11/2011

HELLO!!! How about a story on the story? Hundreds of millions dollars are missing and have been hidden by this firm of former Democratic Luminary John Corzine and you don't have a damn story and don't seem interested in following it either.

[Ramenra]

04:44 PM on 11/12/2011

Well Chubbster the story is still pretty new, they will get around to covering it yet. Just calm down and take a Cain pill.

[Donatella]

09:35 AM on 11/11/2011

Sure, the 2008 financial crisis wasn't enough of a warning, they needed another catasthrophe for them to do their job.

[SPITR]

09:05 AM on 11/11/2011

I'm not sure I trust the auditors any longer.

[kamact]

04:14 PM on 11/12/2011

Never trust the auditors, or credit raring agencies, or the TBTF banksters,...or their government agents,....

[whatsthat1]

08:46 AM on 11/11/2011

Kind of late to the party bud? Where have you been for the past 4-5 years while the economy crumbled as you clowns sat and watched collecting your federal paychecks?

[jobscabin]

08:18 AM on 11/11/2011

The common denominator for all of the fraud that is being perpetrated in the financial industry is the balance sheet, hidden from sight, trusted to be accurate. There are many toxic assets lodged in the balance sheets of some of the hedge funds that are being used for collateral value. Leveraged by "phony" balance sheets, the investment banks and fund managers gamble on puts and calls with computerized trading programs. Its a system out of control and perhaps uncontrollable.

[ThomastonPaine]

08:13 AM on 11/11/2011

Naked Credit Default Swaps Must Be Banned...The Ties That Bind "Too Big To Fail"

Outstanding "60 Minutes"

http://www.cbsnews.com/video/watch/?id=4546583n

"The 29 Global Banks That Are Too Big To Fail"
http://www.forbes.com/sites/afontevecchia/2011/11/04/the-worlds-29-most-systemically-important-banks/

"The Warning Part 2"
Astonishing "Must Watch" CSPAN interview with Professor Michael Greenberger, the former director of the Commodity Futures Trading Commission Trading Division.
http://www.c-span.org/Events/Michael-Greenberger-Fmr-Commodity-Futures-Trading-Commission-Official/17837/

Powerful quote from Professor Greenberger:
"The only reason our economy is in trouble right now is that we blew a multi-trillion dollar hole in it because the casinos didn’t have the capital to pay off their bets and now the American taxpayers had to do it."

*In this remarkable interview, Professor Greenberger discusses:

His work under Brooksley Born and the forces that successfully prevented measures that would have prevented the crisis.
(Larry Summers, Robert Rubin and Allen Greenspan roles are specifically discussed)

Synthetic CDO’s and Naked Credit Default Swaps, and the astonishing growth and impact of the now 600 Trillion Dollar notional Derivatives market.

Current reform efforts with much discussion regarding the role that credit rating agencies played in the meltdown.

Outstanding List of Recommended Links by Professor Greenberger:
http://www.michaelgreenberger.com/media.html

Seminal PBS "Frontline" Documentary "The Warning":
http://www.pbs.org/wgbh/pages/frontline/warning/

[bynddrvn5]

08:07 AM on 11/11/2011

How in the world do you lose track of several hundred million dollars?

Companies such as MF Global are determined to push the limits, until they are reeled back in by regulators or new regulations.

[humanbeing-rick]

07:40 AM on 11/11/2011

Gee, I wonder how this "audit" from cronies of their fellow cronies will turn out?
I am sure they will all get a pat on the back and an atta' boy.
The high flying jet setters are having a field day, at our expense, as usual.

[lloydc123]

07:35 AM on 11/11/2011

Another regulating joke, the CFTC.

[lloydc123]

07:35 AM on 11/11/2011

Apparently nothing has been learned from the collpase of the financail system.

[marinatha]

04:02 PM on 11/11/2011

You are correct.But this time they have opened up Pandora's box......

[AJJJr]

07:09 AM on 11/11/2011

The arbitration panels are stacked against the investor/gambler :) Take the arbitration clauses out, and let these folks be sued in a court of law.

[marinatha]

04:04 PM on 11/11/2011

Yes throw arbitration out, just like they threw out our futures.....

[AJJJr]

07:08 AM on 11/11/2011

Fox watching the hen house again. Slam their feet in the revolving door.