http://www.ft.com/intl/cms/s/0/3a6b837a-0c86-11e1-8ac6-00144feabdc0.html?ftcamp=rss#axzz1dQk8VHQE
CME group runs the futures exchanges in Chicago. Apparently the records for customer accounts are a mess and will take a long time to sort out. Commodity accounts are not “protected” by SIPC. The customer safeguard was only that customer had to be kept separate from other funds, which looks like it wasn’t done – which means it will be years before people see their money, if at all.
The CME sees the danger to their business and is offering to “backstop” $300 million to avoid the MF Global accounts from being stuck in bankruptcy.
Futures exchanges have very little of their own money to prevent their own failure – it’s a collective assumption of risk that if one broker dealer fails, the others will cover the losses – but only to a point.
You know, I’m seriously entertaining the idea now that Corzine knew exactly what he was doing, and this was a deliberate plan to destroy the derivatives industry from the inside out.
You are probably right. He ran New Jersey into the ground.
wonder where he lives? OWS should go to his place, and take the TB with them.