Sat, Jul 30, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Opalesque Futures Intelligence

Independent Investigation Required: Did Criminal Activity Lead to Damage to US Price Stability?
Opinion: MF Global isn't a fight against Wall Street or capitalism. It's a fight against a criminal minority.

Wednesday, November 14, 2012

Independent Investigation Required: Did Criminal Activity Lead to Destruction of US Price Stability?

Opinion:

By Mark Melin

The regulated derivative markets in Chicago, New York and around the world offer key mechanisms for price stability.  They offer market participants the opportunity to hedge everything from interest rates to physical commodities.  Around the world a certain type of professional is drawn to the industry: the risk manager.  Many have seen leveraged implosions up close and they typically utilize a diversification strategy with a series of warning tools to provide indication of leverage problems.

It is for this reason damage to the core mechanism of price stability is so critical, particularly at this moment in economic history.  As a debt crisis threatens to implode across Europe, the unregulated Over the Counter (OTC) derivatives that now underlie the financial foundation could lead to serious consequence. The fight being witnessed is really between the forces that have favored unregulated, opaque derivatives fighting a battle against regulated exchange traded products, is one view.  Regardless of the viewpoint, the regulated mechanism of price stability being violated provides a serious backdrop to consider the damage being wrought if known criminal behavior is tolerated.

"Profits are down across the industry with trading volumes, " Mr. Koutoulas observes. "Sophisticated futures customers would prefer counterparty risk with a 'Too Big to Fail bank' rather than an uninsured clearing house." 
"Segregated account protections have proven to be nothing more than a paper tiger by Mr. Corzine's theft. If Corzine is allowed to walk, it sends the message to not just the futures industry, but the entire US financial complex, 'You can just steal customer money.' If a stand against criminality is not taken the integrity of the entire financial system is at stake."

MF Global About Criminality

MF Global is not an indictment of Wall Street, nor an indictment of any one company or firm.  It is an indictment of a criminal minority that apparently have a disproportionate degree of influence.

On Friday, October 26, 2012 a regulator went public for the first time calling MF Global theft. If this clear indication of criminal behavior is not acknowledged by those operating the investigation, it will represent a new low in criminality surrounding Wall Street. 

This isn't a fight against Wall Street or capitalism. It's a fight against the criminal minority.



 
This article was published in Opalesque Futures Intelligence.
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Opalesque Futures Intelligence
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing


  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: California-based manager launches long/short equity hedge fund with unique algorithm[more]

    Benedicte Gravrand, Opalesque London for New Managers: SJL Capital LLC, an investment advisory firm based in California, has launched its maiden fund, the SJL MarketDNA Hedge Fund LP. The fund, which began trading

  2. Manny Roman to move from Man to Pimco[more]

    Benedicte Gravrand, Opalesque London: Emmanuel (Manny) Roman, an investment world veteran, has been hired by PIMCO, the large US bond fund house, as chief executive officer. PIMCO's current CEO Douglas Hodge will assume a new role as managing director and senior advisor when Roman joins P

  3. HFR: Hedge funds post strong gains in mid-July as markets recover from Brexit losses[more]

    Komfie Manalo, Opalesque Asia: Hedge funds posted strong gains through mid-July as the equity markets continued the recovery from Brexit losses. The HFRX Market Directional Index gained +2.17% (+4.22% YTD) and the HFRX Global Hedge Fund Index gained +1.03% through mid-month (+0.19%

  4. News Briefs - Carlyle goes on trial for a financial-crisis meltdown, Private equity and venture capital outperformed public markets in 2015, Pippa Middleton gets engaged to hedge fund manager James Matthews[more]

    Carlyle goes on trial for a financial-crisis meltdown Carlyle Group co-founder Bill Conway was in court on this small island last week recounting one of the most bruising episodes in his private-equity firm’s history: the 2008 collapse of mortgage-bond fund Carlyle Capital Corp. Carlyle

  5. …And Finally - Two men fall off cliff playing Pokemon Go[more]

    From BizarreNews.com: Two men who fell from a seaside cliff north of San Diego told authorities they became distracted while playing augmented reality game Pokemon Go. Encinitas fire Battalion Chief Robbie Ford said one of the men fell about 50 feet down the bluff in Encinitas while the other man fe