Is 'Inept' CFTC "The Get-Away Driver" For PFG?

Tyler Durden's picture

"I expect to lose money because of the complete incompetence of the Federal regulators" is how Factor LLC's Peter Brandt describes the farce that has rapidly become bankrutpcy for PFG Best to Bloomberg TV today. As we noted earlier, the recent and clearly total ineptitude of the CFTC in identifying (and acting upon) falsehoods is incredible - and twice within one year on a massive scale. In a little over two minutes, Brandt questions the entire CFTC regulatory structure of FCMs and summarizes his views when he reflects on the MFGlobal situation with "the CFTC as the get-away driver of the robbery". What they do in the case of PFG is unclear but we (like Brandt) "have no trust and no faith that the CFTC is capable of handling this mess".

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mharry's picture

He expects to lose who's money? His own or his clients? I don't have the patience to watch the video.

Pinto Currency's picture


Are physical gold and silver being taken to meet delivery obligations by bullion banks by first collapsing institutions such as MF Global and then taking the physical metal assets from allocated customer holdings?

Note wording below to the effect of forfeiting 28% and receiving 72% of the "value" and not of the metal, which may be 100% gone.



" The trustee overseeing the liquidation of the failed brokerage has proposed dumping all remaining customer assets - gold, silver, cash, options, futures and commodities—into a single pool that would pay customers only 72% of the value of their holdings. In other words, while traders already may have paid the full price for delivery of specific bars of gold or silver—and hold “warehouse receipts” to prove it—they’ll have to forfeit 28% of the value...

...At stake is an unspecified, but apparently large, volume of gold and silver bars slated for delivery to traders through accounts at MF Global, which filed for bankruptcy on Oct. 31. Adding insult to the injury: Of the 28% haircut, attorney and liquidation trustee James Giddens has frozen all asset classes, meaning that traders have sat helplessly as silver prices have dropped 31% since late August, and gold has fallen 16%. To boot, the traders are still being assessed fees for storage of the commodities…"


And now PFG Best:

holdbuysell's picture

Capital Account video on this ( where a customer of PFG, a legitimate physical metals dealer who must hedge his holdings, lost (has frozen) six figures.

I think I need to buy a gun's picture

did diane sawyer cover this story yet? I guess most watch the kardeshians anyway right?

strannick's picture

I disagree with "I have no trust and no faith that the CFTC is capable of handling this mess". Filibustering a proper investigation and ensuring that customer accounts make their way into the hands of banks like JP Morgan is exactly how the CFTC handles these events. In the CFTC hearings on MFGlobal, CFTC Commisioner Jill Sommers told the Hearing that it was no mystery where the customer accounts money went and the CFTC was in control. Months later the customers accounts still are disappeared.

Gary Gensler is supposed to be the 'smartest guy in the room''. So if the question is whether the CFTC's ineptitude is the result of corruption or stupidity, stupidity isnt the choice. CFTC Commisioner Jill Sommers voted against having public hearing on precious metals limits. The CFTC has enabled banks to pillage commodity markets and now brokerage accounts. The CFTC is finally getting the spotlight on its benign sublte corruption and the scorn it deserves.

Perhaps the CFTC consoles itself with the notion that it is saving us from ourselves, and that the too-big-to-fail banks are a necessary evil. I bet the lobbyists coughed up a few incentives to help the 5 Commisioners come to that conclusion. The CFTC is a repugnant despicable agency that serves as a front for Commercial Banks, and its Commisioners should be fired or in jail.

AldousHuxley's picture

Phil Gramm spearheded  Gramm-Leach-Bliley Act of 1999 to repeal Glass-Steagall

Gramm was one of five co-sponsors of Commodity Futures Modernization Act of 2000, which kept derivatives transactions, including those involving credit default swaps, free of government regulation. AKA "Enron Loophole"


Phil was Chairman of the Senate Committee on Banking, Housing and Urban Affairs

Now Chairman of UBS Investment Banking


His wife Wendy was CFTC Chairman


an Administrative Law Judge at the CFTC (Commodity Futures Trading Commission), George Painter, revealed in his retirement letter that a colleague of his, Judge Bruce Levine, has never awarded a case in favor of a plaintiff in 20 years on the bench. He traces this back to a deal Levine made with Wendy Gramm

GetZeeGold's picture



Is 'Inept' CFTC "The Get-Away Driver"


Oh hell no.....they aren't that dedicated. They just probably validated their parking.


mr1963's picture

I would see your point except reports have the guy giving the CFTC false bank statements, how hard is it to check a balance at a bank these days? Passed two audits and numerous inquiries. If you're going to audit something, you have to confirm the balance.

As for the government nosing in on derivatives transactions themselves, who knows if any of them would understand them anyway.

maxcody's picture

Hire FBI CPAS's to replace 95% of the worthless lawyers working for this group of inept appointee's.


Kaiser Sousa's picture

"The CFTC is a repugnant despicable agency that serves as a front for Commercial Banks, and its Commisioners should be fired or in jail.."

U left out Shot.....there its fixed now....

1000pips's picture

There is more money 'missing=STOLEN' than $200M.  The fact that bank statements and SEC filings were falsified quarter after quarter makes this case no less than complete aggrevated robbery, probably more like $500,000,000.  

As Zero Hedge has continually reported for the last 5+ years is ALL of these funds are criminal organizations, banks, government agencies, and of course the MSM.  And this will not stop any of the other firms who are in league with this mafia, the only recourse is a complete revolution and destruction of these thief's homes, families and corportions.  

Look at TaxMasters-$191M of fraud, never helped any client's, ran National television ad's for years, and the CEO-Cox, is getting away with just a corporate chapter 7?  

He, along with the THOUSANDS of other 'crooks in nice suits' should be swinging from lamp posts in Dallas-along with their families!  Until this type of correction occurs, there is no real penalty for these criminals.  It's time to get back to the old West style of justice-our modern justice system has failed...

Remeber Ceau?escu?  It really does work!

Bringin It's picture

You must be just joshing about wanting to hang their families too.

Bicycle Repairman's picture

Sippenhaftung?  It's come to that?

Rusticus's picture

Why would he be joshing ? It's the fucking gene pool that needs to be exterminated.

NeedtoSecede's picture

I said it yesterday in another post about corruption and cronyism.  And even though he is just the lastest in a long line of hacks and criminals, the first "test subject" for the rope and the lamp post you speak of should be none other than Eric Holder.


Davalicious's picture

Perhaps it is time to dump the regulators and instead offer a percentage of monies recovered from fraud to anyone who uncovers it. That can be whistle blowers inside the organisation, or teams of people who do this for hire.

You have auctions of the right to investgate a given company every year, or more often, with companies bidding how little of any recovered money they will take from Uncle Sam's share. Then force institutions to allow access to the winning bidder(s).

holdbuysell's picture

we (like Brandt) "have no trust and no faith that the CFTC is capable of handling this mess".


r00t61's picture

Trickle-up awakening is better than trickle-down econ.


There is a difference between "inept" and just flat out criminal.  The CFTC has clearly demonstrated that they are not regulating anything.  Mr. Gensler, the people are coming for you. 

Manthong's picture

Yes.. if the regulators (all) were doing their job and working for the citizens of the United States instead of the banks, not only would MFG and PFGBest never have happened, but there would be no TBTF US banks and a greater than $700 trillion derivatives doomsday would not be threatening the world.

The problem goes back at least to Greenspan and Drexel.



and that goes

Eireann go Brach's picture

I triple dog dare someone to take a bat to Genslers head and beat him good looking! Good lord he is an ugly fucker!

Manthong's picture

That is disrespecting our national pastime..

May I suggest a machete instead?

StormShadow's picture

It's not his fault. With Golem for a father the poor boy never had a chance

newengland's picture

The CFTC head who is an ex-Goldman Sachs man ought to be charged as an accessory after the fact.

This latest theft from client accounts comes after the MFGlobal crime, headed by another ex-Goldman Sachs man, politically connected and protected.

The law is plain on this issue of accessory after the fact.  Use it.

Miles Kendig's picture

The law is plain on this issue of accessory after the fact.  Use it.


What planet do you live on?  These folks reside beyond the law.  Suck it up, sucker and stop pretending that there is a rule of law that applies to this shit soup sandwich otherwise known as markets and those that operate and regulate them.

newengland's picture

Rant if you like, newbie. Bwaaaaaaaah!

You are so very tedious 20th Century. Ever heard of the BIS? The times they are a changing, cynic.

Miles Kendig's picture

Three years, here, with this avi, you few week newbie troll.

Fuck off gerbervore.  btw, are you Harry Wagner in drag looking to plus your bonus?

BIS = The bull in need of proving itself to the grown ups

Bringin It's picture

Miles? newbee?  Too Funny.

Hey Miles, check out what these locals get up to while trying to make it rain.

And tell that guy that - Yes the BIS works for all of us.  /snarc


Take it easy.

GetZeeGold's picture



Yes the BIS works for all of us.


In that case....please have them get me a Pepsi.


Miles Kendig's picture

Give 'em a bonus .. for ingenuity.

Good to see ya!

Silvergood's picture

Every element of the financial system is corrupt.

We live in a sick world.


newengland's picture

Stop whining. Do something to fix it instead of hoard your pittance.

Ricky Bobby's picture

newfuckwit, hoarding has a long historical tradition. It is the duty of the peasant class to hoard when their leaders are so blinded by greed and hubris. 

From the Seven Samurai: "What do you think of peasants? You think they're saints? Hah! They're foxy beasts! They say, "We've got no rice, we've no wheat. We've got nothing!" But they have! They have everything! Dig under the floors! Or search the barns! You'll find plenty! Beans, salt, rice, sake! Look in the valleys, they've got hidden warehouses! They pose as saints but are full of lies! If they smell a battle, they hunt the defeated! They're nothing but stingy, greedy, blubbering, foxy, and mean! God damn it all! But then . . . who made them such beasts? You did! You samurai did it! You burn their villages! Destroy their farms! Steal their food! Force them to labour! Take their women! And kill them if they resist! So what should peasants do?"

Bicycle Repairman's picture

+1 for the "Seven Samurai" reference.

"What a dung pit.  I'd hate to die there."

NeedtoSecede's picture

This is why I love ZeroHedge!  A commenter with the handle Ricky Bobby can come in off the top rope with the "Atomic Elbow" and smack us all down with a quote from the days of the Samurai.  Your momma would be proud Ricky Bobby!

Rock on ZH!

tmosley's picture

The Lucifer Effect.  Poorly designed systems which allow some to exert violence upon others without recompense leads to good people turning evil, both the oppressors and the oppressed.

Panafrican Funktron Robot's picture

The fix is to get out of paper assets.  He stated a problem and proposed the solution, which I'm sure he's acting on as well, both in getting out of paper assets himself, and strongly suggesting that others do the same.  

AgShaman's picture


Akrunner907's picture

I'll have faith in the system when John Corzine is indicted, tried and convicted.

rehypothecator's picture

And punished.  Hanged would be nice, but perhaps just a few decades of prison (with no possibility of parole).  

GetZeeGold's picture



He's been exiled to France.....he is being punished.


What more were you looking for?



Miles Kendig's picture

Con Jorzine indicted and actually serve more than a year at club fed summer camp?

Ya, sure.

GetZeeGold's picture



Forget prosecuting Corzine. I'd be good with locking him in a jail cell for one hour with Barnhardt.


The horror.......the horror.


Temporalist's picture

Seriously if they wanted to do something they would give Brooksley Born a commission to jail anyone she wanted and fix this shit. And William K. Black.

verum quod lies's picture

Yeah sure, just as with the economy we are one more borrowed trillion away from economic utopia, we are one bureaucrat away from regulatory utopia. The solution to too many regulators (e.g., the SEC, CFTC, OTC, etc., etcetera) is one “good” one? No the solution to too much pretend regulation isn’t to add one more pretend regulation or regulator (even one you have faith in), the solution is to make the industry honest or burn it down. The system is rotten (firms and regulators) and incremental “change” won’t do it anymore; it’s time to wipe the slate clean. Also, you’re preferred regulators are not of the correct “tribe”, while Gensler, Geitner, Bernanke, et al. are; how do you get around that filter? Ad homonym attack in one, two, three …


Dr. Engali's picture

Bullshit. You should expect to lose money because you were too fucking lazy to do due diligence and you relied on inept regulators to do what you should have done in the first place. Do your homework you lazy fuck!