This page has been archived and commenting is disabled.
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.
»
- 9096 reads
- Printer-friendly version
- Send to friend
- advertisements -
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!
How does one "man up" when your account gets stolen?
i don't know what lennon_H would answer you , cat_, but would you heep funds in a "bank account" if it wasn't "insured by the FDIC"? didn't the feds hafta step in and guarantee other stuff, too? money-market funds? f&f debt payments even tho the mortgages met "standards" and were themselves "federally guaranteed"?
stuff can't be repaid all the time; b/c of connectedness and contagion issues, some deploy the term "house of cards"
the MFers commingled his money and then lost the money and their inadequate-for-the-risk equity, too, going BK. so yes, he is a victim of a crime, and someone should go to jail, imo
but, be careful whom you trust, with whom you trade and how you hold your assets
we are at the point, now, where the entities and agencies and states which owe and/or guarantee HUGE sums have to borrow money to pay the electric company or they will fail in their obligations. this is why the global credit demands are so huge, plus the EU is having a little downturn, economically, which tyler has a hunch will "lag" into us, here, too, in ways that the data doctors can't assuage, massage, or, triage, which is why slewie is always telling the BiCheZ that cash, mint-produced PM coins, and a large wagon-load of supplies might be a bit more prudent way to go than many of the more corporate types and their media would seem to suggest
celente, knowing they were a bunch of lying, cheating, stealing crooks, gave them his green stamps and trusted them to play fair. ooopsie!
sure! he was defending himself from the QE-caused currency dilution and resultant guaranteed inflation. if the money to finance these bull-shitters comes up short, the banksters will hafta print or fail and now we have not companies, but nations and continents trying to figure out how, exactly, to best rob peter to pay paul. if you are peter, well, you have been warned...
and fuzzy pink unicorns for everyone.
conditioning, fuu
in vietNam, every time you looked at a phone to see where to put your hand to grab it, you saw 5 words: "This Phone Is NOT Secure"
it is not inconceivable that at least a few people understand this issue
if people want faceFuk, let them go there to troll for "hits, friends, and $s"
please join me in junking them, here
let's tighten up a little, here, if we can, ok? there are different ways to language this, but let me put it this way, for now: tyler is putting out a graduate education here, daily, and i'm tired of having the toy-boys shitting all over the classwork, all the time
wilco
Interesting how quickly this vote was taken.
Apparently the committee knows how to accomplish some things in a timely manner.
Good point. It took what, over a friggin year to get position limits on the agenda and then several more meetings to get it passed. I think it is still under attack. We are what, 3 years + into the silver fraud investigation? CFTC is definitely corrupt.
'The push to finalize the rule gained momentum after MF Global collapsed'....GEE too bad they have to wait till the worst happens to pass a rule to prevent it!
In other news, bizarro markets have hardly budget 1 point since open. Futures pump, then entombed in sticky amber.
CFTC says co-mingling is illegal (wink wink).
markets crash overnight, internet down, thanks for going long, you're all broke, blame the internet! SUE US!!!
Yep, and when a couple trillion is seized out of funds and 401K's and all that crap some overnite, whats anyone gonna do about it? Nothin, thats what. Ask the guys from MFGlobal how getting their money back is goin.
The math will tell the truth,
illegal x illegal = Legal
Man does not seek the law, but justice. Failing to find it, he is ever tempted to overturn or subvert the law. When men cannot get justice from a government whose organized force seems confined only to suppressing justice, they begin to exact their own justice, as did the "Geritol Gang” a couple of years ago.
Of course, the group of pensioners was accused of kidnapping and torturing a financial adviser who lost over €2m of their savings.
Goldman justice such as this is what led the guys on America’s western frontier to find the horse thief and hang him, rather than wait endlessly for some corrupt or lax system to find the thief and allow him to escape; they wanted the horse thieving stopped! These frontiersmen had not yet reached that stage of “civilization” where they imagined that their relationship to the state was the same as sheeple to the mastah.
There is a limit on how many unjust laws free men can put up with.
Frederic Bastiat defined it in “The Law” in 1848: “The law perverted! And the police powers of the state perverted along with it! The law, I say, not only turned from its proper purpose but made to follow an entirely contrary purpose! The law become the weapon of every kind of greed! Instead of checking crime, the law itself guilty of the evils it is supposed to punish!
“If this is true, it is a serious fact, and moral duty requires me to call the attention of my fellow-citizens to it.”
It’s just that different people have different ways in getting one’s attention
'The law is an ass!' Said by some famous dude I cant recall.
The thing is, we PAY people to find the fraud of BILLIONS, identify it, etc....and still, no one is prosecuted.
Yet again, if I get caught selling pot, I get 10-30 years in prison.
I mean, how bad does it have to get until these assholes on Wall Street start getting shot at?
http://www.cbsnews.com/video/watch/?id=7390540n&tag=contentBody;storyMed...
Shizzmoney - understand your frustration, however, you may wish to use the term alledgely when referring to hypothetical illegal activities which EVERYONE KNOWS YOU WOULD NEVER BE ASSOCIATED WITH NOR CONDUCT!
Buy your gold and silver in China, and deliver it.
They are Honest people, and they would execute a crook like Corzine.
Somewhere near the North Pole, Santa Claus, in yet another existential crisis, calls an emergency meeting of holiday icons and representatives of Washington DC Law firm "Williams & Connelly" to RE-RE-REDEFINE 'BAD' & how to ensure that if someone is listed on the 'BAD' list - how they can insulate themselves from prosecution - Another point on the ermergency meeting agenda is to address the ink shortage that has occurred since 30 November Central Bank intervention...Santa Claus has also indicated that he is experiencing a funding issue since the bankruptcy of MF Global (Yes Santa & other Holiday Icons HEDGE their trades too!) & the Federal Reserve has appointed Jon Corzine to address the issue -
"I am going to give up heroin (or hopium) all by myself this time. It won't happen again!!! I swear!!!!!!!"
You're not getting my money douchebags.
Bill Clinton and Tony Blair linked to MF Global bankruptcy: http://www.economicpolicyjournal.com/2011/12/hot-mf-global-employee-link...
Nothing to see here, move along.
Closing the barn doors after the horses escaped. Niiice.
The state is owned.
Fuck the state.
The state always equals violence, in all ways.
(A)
Mash Potatoes
http://www.youtube.com/watch?feature=player_detailpage&v=3dJy_fV2Wzg
"AND THATS ALL IVE GOT TO SAY ABOUT THAT"
Sweet! Where can I open an account?
The CFTC is really responding well to this crisis of confidence. (not) They could start by returning that which was stolen.
As an aside, have they imposed the legally mandated position limits yet? A peek at the silver and gold charts this morning seems to indicate they haven't. They are worthless, we all know it. They know we know it, yet they still speak as though they were legit. Chutzpah, bitchez.
can someone please define 'Uninmously'? Does it mean anonomously unanimous or perhaps unanimously anonomous?
After we appropriately define the terms of the debate, I may have further comment. But probably not. I will be busy sticking pins in my Jon Corzine effigy.
Dang! they fixed it. oh well
What are the penalties?
Without an immediate incarceration and seizure of all assets rule, a hollow stance.
Anyone notice that he CME has kept offering $0.50 on the dollar?
When it was $660 million they offered up $330, when it went to $1.2 billion, they went to $660 million.
I hope they are on the hook for every nickle MFG stole.
<sark>
The CTFC should be able to rob and rape anytime they want.....this is completely unfair! For pitys sake,....please think of the theives.
</sark>
The CFTC is as useful as a brain is to our dear central planners, but at least they're ssserial now!
Wheres the power saw mssing fingers and limbs, and poked out eyes
and Heads in a vice and the popping eyeballs from Casino?
any missing money from Casinos? (except in a farce movie)
no missing money or mix up of seg funds, or customers markers, or
missing accounts there? NO ONE DARES to screw up there.
you wanna really find where the money went to , how and where it is?
REALLY want to?
You wanna find out were the money is: how it went, and who is holding it:
from the customers....
you REALLY wanna find it?
http://youtu.be/QzJTV01l98Q
...........FUCK YOU'S CFTC.
And FUCK YOU'S usa GOVERMENT,for allowing this corrupt club of incompetant mother fuckers,to opperate ,ANDYOU PAY THEM......!!!
TOO FUCKING MUCH.
This wouldn't be the same CFTC that oversees the gold and silver futures contracts and options in the paper market is it......
They do a hell of a job,i see.
For the crooks that is.
"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."
Yeah! Ah-huh! Sure!