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CFTC Finally Gets The Memo: Regulator Sues PFG, Says Firm Has $200 Million Customer Fund Shortfall

Tyler Durden's picture


MF Global 2 is now official. At least one can never accuse ex-Goldmanite, and current head of the CFTC Gary Gensler, as being behind the curve:


Hopefully, the CFTC's now meaningless action will help all those farmers whose money has just vaporized. Luckily, they can make it all up on record corn profits.

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Tue, 07/10/2012 - 10:55 | 2602104 icanhasbailout
icanhasbailout's picture



How long were they sitting on it? Was this suit prepared for the specific purpose of ass-covering once PFG blew sky high?

Tue, 07/10/2012 - 10:58 | 2602120 SHEEPFUKKER

Gee that's great, now how are those silver manipulation investigations going?

Tue, 07/10/2012 - 11:04 | 2602150 TheFourthStooge-ing
TheFourthStooge-ing's picture


Gee that's great, now how are those silver manipulation investigations going?

They're still in the ground. They have to process over 9000 pages of paperwork and send out a request for bids to hire someone with a shovel.

Tue, 07/10/2012 - 11:30 | 2602281 indygo55
indygo55's picture

Hey! Tell Obama we have "shovel ready" jobs available. Bullish!

Wed, 07/11/2012 - 07:27 | 2605290 StychoKiller
StychoKiller's picture

Is it really that hard to find $5 in yer pocket(s)? :>D

Tue, 07/10/2012 - 11:00 | 2602136 TheFourthStooge-ing
TheFourthStooge-ing's picture


How long were they sitting on it?

Until their porn connection went down.

Tue, 07/10/2012 - 11:08 | 2602164 Abitdodgie
Abitdodgie's picture

The crops in USA will be down 25% this year next year 50% down the following year 75% down and then it will start to go back to normal, during this time they will trade food for guns , any roiting and you will be in FEMA camps for re-education so just a heads up.

Tue, 07/10/2012 - 11:24 | 2602231 Biosci
Biosci's picture

How long were they sitting on it?

Until it stopped vibrating?

Tue, 07/10/2012 - 11:08 | 2602167 Master_Blaster
Master_Blaster's picture

And never filed against MF Global...but hey, PFG doesn't have an ex-goldmanite.

Tue, 07/10/2012 - 11:11 | 2602181 CommunityStandard
CommunityStandard's picture

Truth.  Watch they crack down hard on this guy and continue to let Corzine run free.

Tue, 07/10/2012 - 11:18 | 2602216 Vagabond
Vagabond's picture

They'll say: "hey we got 1 out of 2... good enough for government work."

Tue, 07/10/2012 - 11:14 | 2602198 sumo
sumo's picture

Doesn't have Koch brothers accounts involved .Doesn't have Washington connections. So yeah, the CFTC will at least pretend to do something this time. To restore public confidence.

Tue, 07/10/2012 - 11:25 | 2602244 NotApplicable
NotApplicable's picture

Corzine set them up the bomb!

Commodity exits are being sealed in order that the paper scams can continue as per the script.

Great Leap Forward 2.0

Tue, 07/10/2012 - 11:55 | 2602385 Oh regional Indian
Oh regional Indian's picture

Very interesting take NA.

Verrrrrrry interesting. Next targets should be....?


Tue, 07/10/2012 - 11:55 | 2602386 HoofHearted
HoofHearted's picture

Just check out the waterfalls from 9-11:30. And notice how they fall right into London "fixing." We all know the fix ix in, but it will be like a beach ball held underwater...once we finally get some real trading to happen, that is.

Tue, 07/10/2012 - 12:01 | 2602412 fuu
fuu's picture

This allows the chorus singers to exclaim, "Euro down, dollar up, gold down", on the beat and with enthusiasm.

Tue, 07/10/2012 - 12:44 | 2602553 TheFourthStooge-ing
TheFourthStooge-ing's picture

Master_Blaster correctly noted:

And never filed against MF Global...but hey, PFG doesn't have an ex-goldmanite.

...and Jamie Dimon said he'd handle MF Global for them.

Tue, 07/10/2012 - 12:48 | 2602568 FlyoverCountryS...
FlyoverCountrySchmuck's picture

"but hey, PFG doesn't have an ex-goldmanite."

Who also happens to be a Prominent, high-profile DEMOCRAT, a huge donor to Obama, and a campaign bundler.

If this had been done while REPUBLICAN, the media would be riding in on the four horses of the Apocolypse to make sure that every sheep in America knew the story. But, since these are DEMOCRATS, you get ABSOLUTE SILENCE from them.



Tue, 07/10/2012 - 12:51 | 2602583 Al Huxley
Al Huxley's picture

Still drinking the Red-team/Blue-team koolaid I see.

Tue, 07/10/2012 - 13:07 | 2602647 riley martini
riley martini's picture

 They didn't have Clinton on the payroll as a PR consultants . Clinton has collected $150,000,000 in "fees" since he left office.

Tue, 07/10/2012 - 11:25 | 2602237 Stuart
Stuart's picture

CFTC are cowards and knowing there is no Corzine relationship to worry about, they're going to try to throw the book at these guys, which is as they should, but also should've thrown the book at MFG as well.   Either cowards are colluded crooks they obfuscated.   Like a bully, pick on the easy targets is their MO.   Corrupt to the core.

Tue, 07/10/2012 - 12:03 | 2602417 Downtoolong
Downtoolong's picture

I'm surprised the CFTC had time to do anything but celebrate their 11,347th useless hearing on position limits. Even Blythe doesn't bother to show up and make her case against limits anymore. She knows it's never going to happen.

Tue, 07/10/2012 - 12:30 | 2602515 Dingleberry
Dingleberry's picture

MF Gobal---"fool me once"

PFG---"fool me twice"


Sorry, but hard to have sympathy here. I got my cash out long ago as a two year old can see how corrupt ALL markets are. Suggest you do the same.  Unless you are prepared to lose it all. 

Tue, 07/10/2012 - 10:56 | 2602108 EscapeKey
EscapeKey's picture

They sue them after all their funds have "vaporized"?

Oh excellent. I can't wait to see the eventual $1.50 fine imposed on them.

Tue, 07/10/2012 - 10:57 | 2602110 LawsofPhysics
LawsofPhysics's picture

Attention farmers, time to accept only PM's in exchange for the fruits of your labor.  Fuck the paper-pushers.

Now let's see, how did WWI start again, oh damn...

Tue, 07/10/2012 - 11:19 | 2602221 Gringo Viejo
Gringo Viejo's picture

God bless these farmers, these good people. I think they've just about had enough of this.

Tue, 07/10/2012 - 10:57 | 2602114 Temporalist
Temporalist's picture

Well it's a good thing the CFTC has been investigating the silver manipulation for 4 years.  Any day now, any day...

Tue, 07/10/2012 - 11:08 | 2602165 tmosley
tmosley's picture

I guess they are waiting on a non-existant private regulatory body to make the first step.

Tue, 07/10/2012 - 11:17 | 2602207 sumo
sumo's picture

They are waiting for another Harry Markopolous to hound them for ten years into enforcing the law.

Tue, 07/10/2012 - 11:22 | 2602228 Vagabond
Vagabond's picture

Their handlers haven't given the ok yet.  These guys aren't even allowed to take a crap without getting the okay from Goldman and friends... Just a bunch of yes men acting like they have some kind of power.

Tue, 07/10/2012 - 11:25 | 2602243 sumo
sumo's picture

Gensler is a former Goldman exec. As CFTC chair, he is a member of the PPT. He is involved in this up to his lying lips.

Tue, 07/10/2012 - 11:31 | 2602283 Vagabond
Vagabond's picture

I have a hard time believing that his involvement is anything other than looking the other way.  If you were the man making the macro calls in this environment where there is no longer any pretense about fucking the common people in the ass, you'd probably want to remain anonymous.  I'm pretty sure Gensler is where he is because he's willing to take orders... not make them... but I certainly could be wrong.  What role does Gensler play other than not prosecuting the inner circle?

Tue, 07/10/2012 - 10:59 | 2602119 sunaJ
sunaJ's picture

The regulators are IN BED with these VD-stricken firms.  They will only take serious enforcement action (beyond a mild penalty) when it is already blown up and only do it to maintain credibility with the muppets.

Tue, 07/10/2012 - 11:10 | 2602174 Jonas Parker
Jonas Parker's picture

Hell, even us Muppets aren't THAT stupid - are we???

Tue, 07/10/2012 - 10:58 | 2602121 john_connor
john_connor's picture

The collapse is accelerating

Tue, 07/10/2012 - 11:09 | 2602173 Stock Tips Inve...
Stock Tips Investment's picture

These cases do nothing but deteriorate even more to Wall Street. I think we need less regulation but more control. Justice that is delayed is not justice.

Tue, 07/10/2012 - 11:24 | 2602233 Vagabond
Vagabond's picture

We need more regulation in some places less regulation in a lot of places, but all of that is irrelevant without justice.  We need justice;  the law needs to apply equally to all people.

Tue, 07/10/2012 - 11:11 | 2602179 Zero Debt
Zero Debt's picture

Put the pieces together: JPM shorting silver + crashing futures trading houses and sucking in their collateral.

Max Keiser's slogan was: Buy Silver, Crash JP Morgan. But this is more looking like "Buy Silver, Crash Your JPM-Backed Futures Broker".

Tue, 07/10/2012 - 10:59 | 2602122 Dr. Engali
Dr. Engali's picture

Corn prices may be high, but it's not going to be a good year. It's all dead around here, the farmers are cuttng it all down  for silage.

Tue, 07/10/2012 - 11:54 | 2602379 JohnKozac
JohnKozac's picture

You said it Doc. My inlaws sold 40% of their cattle due to the severe drought. They are trying to dump the whole farm but very few buyers out there. He even contacted the Chinese who said they will wait until RE prices drop another 50%.


Tue, 07/10/2012 - 12:37 | 2602529 Agent P
Agent P's picture

Going to be hit or miss around here (IL corn belt), but mostly miss.  What little rain we've had has spotty.  Some areas have decent looking fields that look like they could produce ok yields, but others look like they're growing pineapple.  Beans look a little better, but are still small for early/mid July. 

Tue, 07/10/2012 - 12:54 | 2602596 cowdiddly
cowdiddly's picture

Exactly kinda hard to make record profits selling at high prices when all you have is a bunch of burnt to a crisp stalks to sell. Ths is going to be one record lousy crop from what I cant tell around here.

Tue, 07/10/2012 - 10:58 | 2602124 lizzy36
lizzy36's picture

Once again regulators are "Johnny after the spot".

They discover massive shortfalls after....subprime wasn't contained after....AIG forgot to reserve after....they did dicover LIEbor was manipulated after the fact about 5 years ago, just forgot to do something about it.

Heckva job.

Really confident that Dodd-Frank will be anything but really expensive TP.

Tue, 07/10/2012 - 11:04 | 2602149 EscapeKey
EscapeKey's picture

With all due respect, there HAS been some pretty awesome additions to Youporn recently.

Tue, 07/10/2012 - 11:13 | 2602195 iDealMeat
iDealMeat's picture

I'm going to have to verify that.. I just don't take people's word on things. Even on ZH.. 

Tue, 07/10/2012 - 12:13 | 2602459 machineh
machineh's picture

Any videos of Gary Gensler getting barebacked by a well-hung horse?

Tue, 07/10/2012 - 10:59 | 2602128 alien-IQ
alien-IQ's picture

Does this mean that the PFG CEO is not a former Governor or fundraiser to a US president?

Tue, 07/10/2012 - 11:07 | 2602156 Cursive
Cursive's picture



Both stole client money/One CEO is arrogantly parading around, the other CEO tried "suicide" but, since he's a worthless banker, was very unsucessful.

Tue, 07/10/2012 - 11:19 | 2602222 alien-IQ
alien-IQ's picture

When a Wall Street executive attempts suicide, it's merely a thinly veiled plea for additional QE.

Tue, 07/10/2012 - 11:26 | 2602255 Vagabond
Vagabond's picture

Jump mother fuckers, jump.

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