A Slight Twist on the MF Global Debacle
You know the old song “Donna?” You can sing “Oh-Oh-Ba-A-Ma” to it. Not that this has anything to do with today’s blog…
Today’s blog starts with the revelation that we voted Obama into office knowing he had a sparse record qualifying him for president, and we got what we voted for. Case in point, these horny secret service agents getting on with prostitutes in Cartegena. Not that the president hand picked these guys, but there seems to be a record of individuals thumbing their noses at the president, people like Boehner and McCrystal and now…the secret service!
I guess you could put the CFTC into that group as well. It’s fearless leader, Gary Gensler, worked at Goldman Sachs with Jon Corzine. The Scotland Herald ran an interesting article online. It ends with the following words:
Janet Tavakoli of Chicago-based Tavakoli Structured Finance is one of the fiercest and most respected critics of the current state of the US futures markets. She told the Sunday Herald: “I’ve heard people say that there’s a loophole that means that what MF Global did was okay. They are mistaken. Pointing to the fine print hidden away in a contract is not acceptable. There is a law of malice in the US.
“And in any event, if the claims that what they did was okay were accepted, it would only have the effect of further eroding trust in the futures markets.”
Tavakoli believes that the lack of regulation over investing in the futures markets even in the US – never mind the UK – have made them unsafe for speculation.
“The US financial press has no understanding of the futures markets and they are failing to provide coverage and context of the issues. The problem now is that, without the rule of law, no-one should trust the futures markets,” she says.
“It is suspected that the regulator of these markets, the Commodities Futures Trading Commission, decided to give Corzine a grace period to sort out the mess and in so doing put customer funds at risk.
“The deficit may well have been existent long before MF Global crashed.”
Huh? Corzine got a grace period?