CFTC Votes Unanimously To Make Client Money Commingling Really Illegal This Time
In the aftermath of the MF Global fiasco, popular anger has understandable been focused on the complete lack of any response (let alone prevention) by regulators, in this case by Goldman's Gary Gensler, currently head of the CFTC, who quite comically had to recuse himself from an MF Global investigation due to his previous ties to Jon Corzine. So today, in a unanimous vote, "The U.S. futures regulator approved on Monday a rule that puts tighter limits on how brokerage firms can use customer funds, a measure that the now-bankrupt MF Global had encouraged the agency to delay." In other words, while before commingling client accounts was assumed to be a clear violation of every logical fiduciary imperative, now it is set in stone. For real. The CFTC means it. Said otherwise, clients can now rush back into the rigged casino and put their money because as of today illegal activity on behalf of futures dealers will really be illegal. Or else. And one wonders why there has been relentless outflows from anything remotely resembling retail capital in the past two years.
From Reuters:
The measure was finalized by the Commodity Futures Trading Commission by a 5-0 vote. The rule was initially proposed by the CFTC in October 2010.
The push to finalize the rule gained momentum after MF Global's collapse. The firm filed for bankruptcy on Oct. 31 after investors got spooked by its large bets on European sovereign debt. Regulators are still searching for hundreds of millions of dollars in missing customer money.
Supposedly this also means Corzine will never be questioned for anything, ever. After all the CFTC has now done its job.
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now they make this illegal?
PLease note there were no conditions to be met.
Like starting a project with no deliverables and no business case. Nothing changed, yet it appears that something has been done.
CFTC Goes After Mother Fucking Global:
http://www.cnbc.com/id/45551299
Banks cant gamble away clients money? How will they survive? (wait, i know, free money from the Fed)
This is all meaningless, Fraud cannot be regulated!
CFTC = Cant Find The Criminals.
CFTC = Come Fuck The Consumer
CFTC = Comingaling Fraudsters?, That's Correct!
Gary Gensler: "We made this illegal, so now it will never happen again! I mean it! I'm super serial!"
http://www.southparkstudios.com/clips/155238/manbearpig-meeting-8am-sharp
FUCK THE CFTC! WHEN THEY GONNA ADDRESS OIL!?
bingo
Read it and explain to me how other than a tiny nominal slap on the wrist this fixes anything.
Does this mean all the trades now have to unwind today after the decision? If so the market should be taking the biggest shit on the planet right now. No, it didn't change a damn thing.
Nobody is getting their money back. The CFTC round table was basically civil servants fellating one another so all their voices could be heard with zero outcome. No procedures, no process, no WILL POWER, no teeth. They aren't enforcing fuck all.
This is the architype of a red herring if there was ever one. At least now we know the farce is complete, the financial community is starting to pull the same shit as the political sector ala Kangaroo courts. When politics bleed into the money, we are done.
So, anyone thinking about putting a nickle in there, don't, now it could blow sky high any day.
Have you heard this Ann Barnhardt interview w/ Jim Puplava?
http://www.netcastdaily.com/broadcast/fsn2011-1201-1.mp3
This is absolutely UNACCEPTABLE. It's time for the Federal Reserve to step in and prevent fraud in these markets. We need smart, trustworthy regulators so that we don't have to WORRY about these complex issues. This is the last thing I need to worry about now. It's time to elect trustworthy leaders once and for all so that this NEVER happens again. Americans have been voting for years, so they are qualified to monitor the success of the CFTC at preventing fraud in clearing houses, prime brokerage and prop desks.
Time for the FED to step in and prevent FRAUD?
You seriously are very delusional or sarcastic. I can;t figure it out, but really hope your sarcastic there.
THe FED is the problem.....
I understand your cynicism, and I share it to some extent. I would feel far more comfortable if Obama were to introduce a department dedicated to anti-corruption, to increase the trustworthiness of the government and Federal Reserve.
MDB, I bet you would feel a little different if you had skin in the 1.2 billion that was ripped off.
Yor mother is calling you in for your nap..now run along....Honey we really need to do something about MDB sneaking on the computer ,,I know dear, I'll talk to him after his nap.
the department of anti corruption answerable to nobody and funded wit voluntary excess tax payments and campaign contributions
Who watches the watchers?
Mr. Smith and Mr. Wesson with help from Mr. Browning.
Regulatory capture also is rampant in the Department of Justice. Eric Holder is a disgrace and the legislators who haven't done anything substantive about putting him behind bars need to be checking their passports to make sure they are not up against renewal.
as soon as my court case was due, the venue for the judges was changed,... upon seeing the judge, my lawyer looked at me, and i at him - quietly he said, just hope for best, but it's gonna be the worst,...
"I would feel far more comfortable if Obama were to introduce a department dedicated to anti-corruption"
HAHAHAHAHA that's the richest one yet... Calling on a born and raised Chicago politician, cut from the cloth of Bill Ayers and Rahm Emanuel, to create an anti-corruption department.
I suppose Rob Blogojevich could be appointed as Obama's Secretary of anti-corruption; or maybe Richard Daley
Bravo, MDB. Just when many thought it to be impossible, you've managed to outdo yourself yet again.
...a department dedicated to anti-corruption...
They can start with Solyndra. We need a new Energy Secretary.
Then they can work the Fast and Furious scandal. Place Holder gets ejected.
If they work fast enough, Barry Soetoro could get a whole new cabinet by next election.
either way he's fucking unstable or paid to do this shit
PLEASE don't feed the TROLLS.
William Black testified to Congress that the Federal Reserve has an investigative team numbering less than 10 people, and that it was the duty of Bernanke to have that investigative team appropriately sized. During the S&L crisis, for example, it was much larger.
It is on Bernanke to have oversight. He hasn't done it. So based on what you and I are writing, then Bernanke is to blame.
US System is dirt corrupt, to the core???
Must watch 60Mins from last night, NO (zero) Prosecutions from sub-prime debacle, while blatant evidence is hitting them in the face.
What about inside repurchase agreements? oh....nevermind I guess right?
The 60 Minutes piece was typical, half-assed, milquetoast, MSM reporting. Here are a few essential facts they missed that might have gotten more people off their asses and into the streets:
Occupy LA Teach-In William K Black
http://www.youtube.com/watch?v=N_AuvLTJNh0
Black for Treasurie Sec
Evidence had to wait in line behind midget-tranny porn.
Why aren't they searching for the guilty? BECAUSE THEY WOULD FIND THEM!
Something has been done and it's good for Corzinie: With the CFTC taking this action now, Corzine will not be able to be prosecuted under the new rules for actions taken place way back then, say a month ago.
Wow, its really illegal now?
Like really really really illegal?
Can't be ...
I, for one, feel so much better now that the system is fixed.
Double secret illegal.
"No worries; as soon as I saw that the barn door was open and that the horses escaped, I went into immediate action! I worked swiftly and tirelessly to close the barn door, and now that it's secured we won't have that happen again.
"What do you mean "What about the escaped horses?"? The barn door is closed, that's the important take-away from today's actions. Absolutely closed.
"I promise."
Of course it won't happen again...'cause there aren't any horses left to escape...
".. now they make it illegal?" yes and no, yes for future transactions(unless the perpetrators are buddies with the Prez.) but implicitly they say it WAS LEGAL up to now, wtf !?!??!?! Can you spell 'Corruption' or just Call it retroactive legalization
Reminds me of the Seinfeld episode where the dry cleaner's wife is wearing Jerry's mother's coat. When confronted, the dry cleaner says "That's against the dry cleaner's code!"
Seinfeld responds "You need a code to tell you not to wear other people's clothes?"
So you need a law to tell you what is patently obvious?
They are now on "double secret probation"!!!
That reminds me of the Merkozy two head monster stating that a the new EU treaty will really, really enforce fiscal standards on its members. In this case, the reality is that the EU wants to exchange sovereignity for something that sould have been enforced under the original Maastricht treaty to begin with. So much for accountability.
In the case of the CFTC, tightening these rules is an admission that you either (a) never enforced the original rules to begin with; or (b) was complicit in allowing your corrupt fraternity of members to exploit loopholes in the regulation to make commingling a perfectly legal enterprise. And all at the expense of client, who for the most pat, thought they were protected.
In any case, the CFTC is attempting to cover the ass that it made out of itself. So far, the results are not so good.
...unless a sizeable donation to the incumbent is in place.
This time it's different
Unknown unknowns, you know?
The law be damned, if it's not enforced.
The louder he talked of his honour, the faster we counted our spoons. -- Emerson
Do they Pinkie-swear ?
So are they saying commingling was 'make believe' illegal ?
Time to double-down.
End the CFTC
Legal or illegal - what does it matter when no laws are being enforced?
...I guess this will create a giant bonus to whoever manages to find a way to blur the line between what is client funds, and what isn't. It's exciting; I almost can't wait to hear the next legal phrasing to ensure this loophole too is patched.
what is wrong with our world that there even needs to be a rule for this, let alone a double-dog-dare-you rule
has our society completely lost its mind and soul or is it just that the most scum sucking amongst us gravitate towards certain professions....sorry rhetorical question.
So does MF "Get a Mulligan" on the $1.2 Billion ?
Double secret probation.
Double secret probation, sir?
Double plus ungood
Horse, barn, cow, gate, etc. Why is it that the new rule is always passed after the ripoff? And shouldn't we have all the obvous ripoffs ruled out by now?
Gary Gensler is the man who advocated and succeeded in deregulating Credit Default Swaps; the man who served as Treasury Assistant to U.S. Treasurer Robert Rubin and Undersecretary to Lawrence Summers; who worked for Goldman Sachs for 18 years and was made partner at age 30.
“Should there not be some inquiry into what the invisible government of Goldman did to create this disaster, which has caught up with some Wall Street firms but not the nimble Goldman?” – Ben Stein
Naaaah! Why upset the rotten apple cart.
With regulators like this, no wonder the income gap is widening
http://www.oecd.org/document/40/0,3746,en_21571361_44315115_49166760_1_1_1_1,00.html
But that's just until the next time a gold Obama bundler gets caught. You always got to read the small print:)
Next will come the CME announcement that "next time" they REALLY REALLY will be the backstop to all transactions and will protect the integrity of the market.....
I propose a new resolution - really really illegal including some sort of penalty if you break the rule. Like a weekend of community service or something.
But how would a corporation actually do community service? I mean the entity itself, not it's employees. I mean, a corporation is essentially a quadraplegic person, right?
Illegality is in the eyes of the beholders.
Don't worry, we still have the "highly respected" Criminal Reserve to make sure the theft will continue no matter what.
This sounds like an admission of guilt by the CFTC because it is already illegal for a B/D to use client accounts or commingle their funds.
Oh, I can hardly stand it! That little Gensler, with his compressed little face. I want to slap him and say, "Oh, you want me to think you are tough, now, you little pipsqueak, you obsequious little rat, you squirming little tadpole in the cesspool! Shut up! I know what you've done, I know who you are, I know what you want, and I'm going to purge you of your pathetic little needs until you realize that only honesty brings real manhood."
Double secret probation if you get caught doing it!
Really, I swear, this time for sure. No, really, please put [our] your money back into FCM's. Sure, REFCO and MF Global, we fucked up - hey, shit happens - but this time [until we change our mind] we got you covered.
http://vegasxau.blogspot.com
Maybe the Ministry of Truth should go back and rewrite history and say it wasn't illegal until now. That may con a few more sheep to keep this shit rolling for a few months.
They blame it on "deregulation". As if fraud is a concept that magically was thought up by a democrat 5 years ago.
They wouldv'e had the new language out Friday, but needed to clear it by Corzine over the weekend.
no matter what the CFTC says, the money was still stolen
The next time you steal the clients money and we are going to put you on double secret probation.
Seems like a lot of other Hedgers had the same idea. Back to te drawing board.
Lend me a million dollars under my hedge/mutual fund, I promise to hand you back the exact same amount of money in a year, plus charge you a nominal fee.
If I fuck up and "accidented" your money, it's alright, don't be worried but I'll be covered and give you the loss since it's your money.
This is the first time I have ever heard Cavate Emptor for triple AAA investment facilities. This is the type of thing that builds more basement hedge fund operators, not less.
So people as of today all of you can now borrow money from someone, mix it into your money and "accident" it. Fully legal, theft is now legal.
Correction : theft has always been legal if you have the right connections. There was only the illusion of accountability. Now they do it right out in the open, and nobody seems to care.
I think we all need to start a Zero Hedge Investment Fund.
We'll steal with impunity, apparently it's the only business left.
I don't understand why this guy is still walking around. Don't a lot of people get "hurt" for stealing a lot less?
Someone stole some toilet paper from a restaurant around here. They went to jail I do believe. Jail is only for the peasants.
Haven't had a vacation in 2 years. Won't be taking one until summer of 2014
The congress passes legislation the CFTC enforces legislatio.
Kind of like all that insider trading that occured surrounding 9/11, but noo lets look the other way... Fuck off.
Zerohedge needs to do an article about all the important times in history where insider trading and other insider transactions were given the blind eye.
There are lots of them on here K. If the Tylers bound them into book format it would be larger than a full encyclopedia set.
Seriously, play blackjack, craps, and roulette for your at risk capital. Bring it back in cash and buy gold and silver. I really am failing to see what the difference is between that an "investing" right now. Without clear property rights, this really is nothing more than a rigged casino.
I know more than a few people make that claim on this site. But dammit, it's true
The laws we hold dear are restored!
The system is fixed! - THANK THE LORD!!!
Tyranny's dead!
The Kleptos have fled!
I finally escaped from the ward!!!!!!!
aka "gerald's rule"
i'm sure the fuking trolls who never let a day go by w/out trying to remind us how rilly rilly smart and perceptive celente is (and don't forget the 6,666th link b/c we're not smart enuf to find his ideas [like buying paper gold thru a now-bankrupt PD and then maybe fibbing a bit that he was gonna rilly rilly take delivery]) will be happy that mr. wunnerful can now trade safely and make "money", especially now that the ad-bots are taking a much-deserved, highly welcome (and hopefully permanent) "time out"
i hope that many other zeroHeads who suffered thru his unique self-promotional onslaught here will join me in wishing the moronic shitforbrained asswipe happy holidaze and a prosperous new year full of many. many more incredibly moronic face-plants...
I don't think about what he says differently, just about who he is, and not that he is a bad person or anything, but if you can't walk the walk, then why talk. I also don't have a problem with him trading futures, but he shouldn't whine about it. He should be an example and man up. It would still be the same example it is (that Mother Fucking Global stole funds) but he would come out looking cooler.
I agree with a lot of what he says, and always will, and honestly, he helped send me in the right direction of owning physical, but why he is whining about the bully taking his lunch money when he asked the bully to hold on to his dollars in the first place is beyond me.
you know, he's entitled to what he thinks and what he does and how he does it, just like anybody else, and i must be shitforbrained too, b/c i also share many of 'his' values and ideas, as i'm sure you wld know, L_H
but his trolls were some of the toughest fights i've had, here; i'm glad they're gone
now, we have a handful of posters who allude to his "work and ideas" every chance they get, here, but less obnoxiously and w/out all the "divine blessings" for us less-fortunates
but now we have at least a dozen self-promotioners, some of whom, like ORI, seem to jump to the top of every string and/or lay more than one steaming ad-bot turd on a board; they generally want to get you aff zH and onto their turf; they are quite interested in who you are and what's yer e-mail address, so they want to know about you and there is this constant anti-anonymity bias which works against the stated values of the zH site. even if you like one or more of them and feel you can "trust" them, is your ID secure w/ them? and please don't tell me how much the spooks can get, anywayz, so it doesn't matter
IF we are involved in a fight, THEN we need to protect ourselves from "the plumbers' bag of dirty tricks" as thoroghly as we are able
so please join me and JUNK THE FUKERS, BiCheZ!