Fri, Aug 18, 2017
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: Albright Capital puts a value lens on emerging markets[more]

    Bailey McCann, Opalesque New York: Over the past decade, investors have steadily increased investments in emerging markets private funds. Allocations to the cohort have increased from $93 billion in December 2006 to $564 billion in September 2016, according to data from research firm Preqin. Howe

  2. Comment: "Long-Term Investing": What managing drawdown risk can do to your long-term returns[more]

    Matthias Knab, Opalesque: Real Investment Advice writes on Harvest Exchange: Last week, I was having lunch with a prospective portfolio management client discussing the curre

  3. Jasper Capital International joins Hedge Fund Standards Board[more]

    Komfie Manalo, Opalesque Asia: Diversified and systematic investment firm Jasper Capital International has become the second China-based signatory to the Hedge Fund Standards Board (HFSB), an organization that brings hedge fund managers and investors together to set standards for the hedge fund i

  4. Investing - Hedge-fund honchos including David Tepper are loading up on Alibaba, Billionaire hedge fund manager Stanley Druckenmiller is betting big on the Chinese consumer, Big-name U.S. hedge funds shed healthcare stocks during the rally in second-quarter, U.S. hedge funds bearish on FAANG stocks in second-quarter, Hedge fund titan Viking Global made a $680 million bet on scandal-plagued Wells Fargo[more]

    Hedge-fund honchos including David Tepper are loading up on Alibaba From CNBC.com: David Tepper's Appaloosa Management and three other he ge funds took new stakes in Chinese e-commerce giant Alibaba in the second quarter, according to the latest quarterly filings. Appaloosa disclos

  5. FinTech - Danger: Crowdfunding on the wrong platform could force you to go public[more]

    From LinkedIn.com: Some equity crowdfunding platforms are putting startups at serious risk. Working with a platform that doesn't structure your deal appropriately could jeopardize your ability to raise future capital or worse, force you to become a public reporting company. The emergence of eq