Uncorrelated Investments Show Episode 5
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Can $1.6 billion in customer funds simply “vaporize?”
Safety of Customer Funds has been a bedrock of the industry. MF must have known balances of customer funds.. Will “chaos and confusion” of a few days be allowed to stand as an excuse? Deterrence is the foundation of industry customer protections.
MF Global’s reported a deficit in August however the reports to regulators were subsequently corrected. But the overall question remains: Was MF Global risk significantly obfuscated?
After the MF Global earnings came out on October 25th, Price Futures made the decision it would move out of MF Global. Although no accounts or funds were transferred prior to the Bankruptcy on a few days later on October 31; Price successfully was able to choose ADM Investors Services as their new FCM.
The involvement of SIPC and how Price Futures handled the claims process for clients.
Does time and delay benefit the criminal element? “There was a crime …. Someone shot someone.”
“Things that are hidden are hard to catch.” Tom Price looks at footnotes first.
Regulators can only regulate what is given to them; were the MF Global disclosures to regulators deficient which masked the (illegal) asset transfer? Is the real issue enforcing laws?
The segregated account is stronger now than ever, but its reputation is at its lowest point in history.
By not holding MF Global executives responsible for criminal activity it seems like a version of DC “can kicking?”
The positives of managed futures and problems chasing returns
