Ironically, yesterday I wrote a piece on how the regulators around the world are not doing their jobs. Everyone wants to blame the banks. But we should be looking really hard at the regulators. Especially since it looks like they are tipping off the big banks as to policy action and helping them lie.
Late yesterday, a futures firm named PFG Best had “accounting irregularities”. They are now defunct. Unfortunately for a lot of customers, they had moved their accounts from MF Global to PFG. How sad is that?
It is very clear that the CFTC is not doing it’s job. Obama appointee, Chairman Gary Gensler is more concerned with trying to establish new regulatory powers and expand the reach of the CFTC than he is policing and running a clean marketplace. It’s up to the CFTC to make sure customers don’t get screwed.
In addition, MF lingers on. 28% of customer money hasn’t been returned. No one has received immunity, and no one has been charged with fraud, or had RICO statutes thrown at them. The MF case is political in an election year. The CFTC looks like a political machine hack organization rather than a regulatory commission charged with overseeing a volatile marketplace.
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