MF Global became a primary dealer only eight months ago.
"Primary dealer" is an elite status. It means the firm is one of only 22 government bond dealers that trades directly with the Federal Reserve's New York trading desk.
Only, the Federal Reserve doesn't regulate or oversee MF Global, the Commodities Futures Trading Commission (CFTC) does - or rather is supposed to.
But, even more incongruously, the CFTC isn't the first overseer of MF Global . It ceded that responsibility to the CME Group Inc. (Nasdaq: CME), which owns and operates the largest futures exchanges in the United States. The designated self-regulatory organization for more than 50 futures brokers, CME was supposed to be the cop on the beat.
However, t he not-so-funny thing about the relationship between MF Global and the CME Group is that MF Global recently boasted on its Website that it "was the top broker by volume at CME's metals and energy exchanges in New York and in the top three at its Chicago exchanges."
So, is it any wonder that the CME just last week audited MF Global's segregated customer funds and found them to be in compliance?
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They didn't let us down. They stole from us.
ReplyDeleteThey are part of the problem. They are the same people they are supposed to "regulate".
The Federal Reserve Bank (evil and secret to the core) has the "job" of overseeing all the other banks.
ridiculous