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TFC Commodity Trading Forum

Re: MF Global Update
In Response To: Re: MF Global Update ()

Based on what I have read is that CME does the audit to insure segragation of funds, and they had recently done and audit and did not find any issues somewhat before they tried to sell MF on Monday morning Oct 31st to Interactive Brokers. Then sometime Sunday the 30th it was found out about the missing 600 mil and Interactive Brokers backed out. MF had then to 5 AM that monday morning to file bankrucpty and they did.

They have yet to find the missing client money and now think it may be 1.2 bil. Also they have layed off almost all MF employee's which makes it even harder to find where the money went. One analyst says it may be like a shell game where they are trying to find the pea, but there is no pea as it is long gone. He also thinks that the missing client money may have been more in the way of securities like Tbills as opposed to cash as it would be easier to see that cash was missing, but that is just his theory.

In stock accounts they have that SIPC insurance that can help make one whole up to a certain amount, but in commodity accounts it does not apply.

I guess as far as freezing the accounts they had to as they new about the 600 mil and you can't give back what is not there. Also they want to do it in multiple distributions because it seems they still do not know how much is missing.

With the segragation of funds its not suppose to happen, it shouldn't happen, it can't happen, but it did happen.

Maybe they should put the congressional super commitee on it to find the money. Guess that won't work either as they proven they cannot agree on any money to cut from the budget, so that won't work either as they cannot find any money.