Re: The Corzine Rule.
Very important issue
The Commodities business has always been corrupt
To name a few:
Tom Egan at Stotler
Dittmer (and Tone Grant) at Refco
Some rogue brokers at Conticomodity (that forced the Freeborg to cut this "shameful" business
Alaron just before PFG bought them
LTCM
(ENRON, WORLDCOM, BEAR STREARNS, LEHMAN BROTHERS, SALOMON BROS (MILKEN),NICK LEESON and other rogue traders)
now MF GLOBAL AND PFG BREAKING INTO SEGREGATED ACCOUNTS
HOW CAN ANY NORMAL PERSON PUT THEIR MONEY INTO AN ACOOUNT THAT IS ASSUMED TO BE SAFE while the truth is that the BANK and the BROKERAGE can do with the money whatever they want?
This is a KISS of death to the INDUSTRY if they do not fix this BLACK HOLE!!
whatever I read is NOT SATISFACTORY. TOO MANY LOOP HOLES:
CME Group Inc and IntercontinentalExchange both support the rule, according to the Wall Street Journal. A CME spokeswoman told the Journal that “more work needs to be done to ver the idea.”
“This won’t be the only response, but it’s another way we can safeguard customer funds,” said Daniel Roth, the NFA’s CEO and president.
Alternatives to the rule include proposals that would allow customers to store funds at clearinghouses instead of brokerage firms, or creating insurance funds to protect customer accounts. Under the Corzine rule, there is no mechanism to prevent customer-money moves, only the supervisory capacity.
Read more about the “Corzine rule”