The CFTC should investigate because they need to know all the facts. They are working from behind. The real action is going to take place in a court room under oath.There is one little tidbit of information that says a lot though.
But CME never completed an audit, a point officials later conceded when pressed by lawmakers. Instead, CME said it was a spot audit, though they did not complete that either.
CME was unable to verify the customer accounts because MF Global did not hand over needed information corroborating the account statements, according to a submission it made to Congress.
But that did not stop exchange officials from heading home for the weekend at about 6 p.m., Friday, Oct. 28.
The officials did not return until that Sunday afternoon, after an apparent shortfall in customer money was discovered.
Really? Their largest customer was having huge problems and management couldn’t bother to hang around and see that the audit was completed and verify that all the i’s had been dotted and the t’s had been crossed?? It’s not as if the street didn’t know the entire week before that MF was having trouble. Some people even pulled money out of their accounts before the Wednesday that the firm went belly up.
That speaks volumes. I think the word for it is “hubris”.
Remember Upton Sinclair? He wrote The Jungle. Unfortunately, the bureaucratic organizations that came out of the outrage from the book are probably doing more harm than good today. Here is a quote for you to ponder from Mr. Sinclair,
The American People will take Socialism, but they won’t take the label. I certainly proved it in the case of EPIC. Running on the Socialist ticket I got 60,000 votes, and running on the slogan to “End Poverty in California” I got 879,000. I think we simply have to recognize the fact that our enemies have succeeded in spreading the Big Lie. There is no use attacking it by a front attack, it is much better to out-flank them.
-Letter to Norman Thomas (25 September 1951)