No surprise that the CFTC would investigate CME ($CME). The New York banks hate the exchanges with a passion because of the transparency they bring to the table.
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,
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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)
This is an interesting article using behavioral economics and the favorable/unfavorable perception of US cities.
Amazing what technology is doing to employment. Allan Greenspan talked about gains in productivity back in the mid 1990's. I wonder if he envisioned what is happening.
You know this whole narrative on how Private Equity is a job destroyer? The data doesn’t back up the narrative.
When I posited early last year that the 2012 election would get ugly, I didn’t know it would start out in the gutter and this early. Eugene Robinson and Alan Colmes, neither of you have a conscience. Both made fun of Rick Santorum and his wife’s decision to allow their children to see their baby/sibling that passed away two hours after birth. I thought the left was for leaving people alone with their private decisions and no judgement of people. Scumbags. New civility my ass.
Medal of Honor recipient Mike Colalillo has passed away at the age of 86. God rest his soul.
Lots of posts try to sum up the year. This one is actually pretty awesome. The year in tickers.
A person that was vocal and took his case to the US Supreme Court passed away. He spoke out in protest of the Japanese internment camps during WW2. If the Japanese internment camps aren’t one of the best modern day arguments against big government I don’t know what is. A corollary to today are many provisions of the Patriot Act. I am not a fan.
When Twitter was first launched, I thought it was a bit crazy. Essentially it was just a status update on Facebook. I thought new businesses would be formed that would segment the Facebook platform. Some have. But Twitter is developing into the go to information source. Who needs to watch television news when you have Twitter and follow the right people for your needs? How can you turn tweets into customers. I think in 2012 people figure out how to really monetize the platform. Big money.
Singapore is cutting governmental salaries. We should do the same here. Cut their benefits too.
Asking life’s real important questions. Will you be there? Can you love again?
I bet high earners that donated to the Obama campaign weren’t audited. IRS audits up sharply on high earners. Remember when Nixon was accused of using the IRS for his own political means? Obama is no different.
Here is what 5 mavens of social media think will happen in 2012.
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