'History repeats itself, first as tragedy, second as farce..'
I have spoken to the heads of various Wall Street equity derivative trading desks and every single one of the senior managers told me that Bernie Madoff was a fraud. Of course no one wants undue career risk by sticking their head up and saying that the emperor isn't wearing any clothes. As a result of this case several careers on Wall Street and in Europe will be ruined. Therefore, I have not signed nor put my name on this report. I am worried about the personal safety of myself and my family.'
-Harry Markopolos in 2005.
'No one at MF Global ... has been accused of any wrongdoing....The CME Group...has not been accused of any wrongdoing.' - New York Times
'A “spot check” performed on US futures brokers’ customer accounts in the wake of the MF Global failure found all, including PFG, were in compliance, CFTC said in January.The Chicago-based NFA had responsibility for auditing the broker’s accounts.
After contacting US Bank on Monday, the NFA found that PFG had only $5m on deposit there, NFA said. Further, NFA found that two balances of $207m and $218m reported by PFG for February 2010 and March 2011 respectively at US Bank were false. PFG only had less than $10m for each of those months, the NFA said.' - Financial Times
'Only now at the end do you understand. Your feeble skills are no match for the power of the dark side...'
'We have to show these men and women freedom by enslaving them, and show them courage by frightening them.' - Fight Club
"FCM's should be required to develop automated daily reports that divulge their segregated customer account balances and holdings to exchanges. Appropriate information such as compliance to guidelines need to be made public," Alex Kins, CEO, AlphaMetrix
The criminal syndicate strikes again.
The NFA, National Futures Association (NFA) is the industrywide, self (er scratch that) stealth-regulatory organization for the U.S. futures industry. NFA strives every day to safequard market integrity, protect investors and blah blah blah (insert your derision here).
Obviously the (smurfs at the) NFA's spot-check of PFG, the most recent happening 'that could never happen' involved making sure that the officious document asserting a couple hundred million at US Bank was uh.... officious looking. Hold it up to the light to see a watermark perhaps? Check the PFG website to make sure it was the correct company letterhead? Did the fella sign it? OK!! Put it in the official file.
Of course actually contacting the institution to confirm funds was too obtrusive and outside the NFA's striving mandate to safeguard and protect the criminal syndicate and its' associated sycophants.
Golly gee, they will no doubt exclaim we don't have a mandate or the manpower (er scratch that) willpower to police the thousands of FCMs ( er scratch that... less than 100!... see http://www.futuresbuzz.com/fcm_accounts.html) and besides that responsibility if it were to exist would rightfully need to be explained away by one of our brethren regulators (er scratch that... wolves).
Today's 'hen special' of two or 'tree' hundred million vaporized will quickly cycle through the pablum narrative... the 'regulators' even now divining what mitigating action need be taken to turn the page , to start afresh, to restore confidence and integrity to the folks who serve as the necessary fodder for the armaments of the more equal brainworkers.
The only hope for the good people, which I can assert since they include friends and acquaintances, who now stand victimized and vulnerable, is that the dollar cost to the Cosa Nostra of the hit to whatever these solons desire their 'reputation' to be is greater than the dollar cost of making clients of PFG whole.
The 1st rule of Fight Club is that you do not talk about FIGHT CLUB. The 2nd rule of Fight Club is that you DO NOT talk about FIGHT CLUB.
Watch as they try to change the conversation again.
Quis custodiet ipsos custodes?
@$#%@#$%@#$ Honey! Where is my scotch?