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hardnox604008
Advisor

Article "CME to customers, drop dead."

 

Yves has some good points here, I think.

 

http://www.nakedcapitalism.com/2011/12/cme-to-customers-drop-dead.html

 

“CME has one of the most effective government affairs operations in the nation’s Capitol. I’ve rarely seen them on the losing end of an issue,” says Robert Holifield, a former staff director on the Senate agriculture committee.

CME has spent more than $8m on lobbyists since 2008, ranking each year within the top 20 biggest spenders in the securities industry, according to data compiled by the Centre for Responsive Politics, a non-partisan research group.

It has also been a big donor to political campaigns, laying out about $2m to candidates, party committees and leadership political action committees in the last two election cycles, according to the Centre for Responsive Politics.

This year, CME donated more than $75,000 to lawmakers who serve on the House agriculture committee and over $97,000 to members of the Senate agriculture committee. These committees oversee the Commodity Futures Trading Commission, the government futures regulator, which in turn supervises CME’s role as a self-regulatory organisation."

 

In the end it is like everyhting else in this political economy-it is cheaper to pay to get the rules changed than it is to make it right.

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10 Replies
k-289
Senior Advisor

Re: Article "CME to customers, drop dead."

Watch   the   hearings    WOW

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sonoma72
Veteran Contributor

Re: Article "CME to customers, drop dead."

I don't find the japanese view ridiculous at all.  In fact I remember in law school, one of my professors saying, if you are going to do something, or say something you shouldn't, "NEVER WRITE IT DOWN."   How else can you claim, "I don't know."  Makes perfect sense to me.  As for the customer be damned, well, I thought that was standard business practice any more.  I think we can all tell stories of equipment dealers or whomever, that subscribe to this theory.  

 

I was watching the hearings today, and was thinking to myself how I would question, "the King of the scumbags," or at least the duke...   I guess I would try and draw old corzy in with a parallel argument.  so lets say the organization has 5 branches.  Lets say that the fraud occurred in branch 5.   So instead lets ask questions about branch 1, and work our way down the levels.  so lets say there are 10 levels in each branch and we could get ole corzy to admit to knowing about the workings of branch one all the way down to level 6.  Then, at some point we would ask johnny boy what level he would say the fraud occurred at, hopefully he would say 3 or 4.  And then I would ask, so how is it you know all about division 1 down to the janitor, but you conveniently forget the highest levels of perhaps the most important divisions?     Frankly I don't see how this was any different than robbing a bank...

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Palouser
Senior Advisor

Re: Article "CME to customers, drop dead."

Adequate regulatory power with forensic accountants who know the business shouldn't have much trouble drilling down through the layers. I suspect we have none of those at hand. I suspect one of the reasons that rampant fraud hasn't been investigatigated or prosecutions brought forth is for exactly the same reason. The assets to do this have never been funded. The ones on task are probably far over their heads trying to follow trails w/o adequate investigators for previous cases.

 

We may never know if Corzine is telling the truth or not because the sequence of events may never be reconstructed. It will be folded up, settled with what is known, and then we'll see the struggle over the next fiasco. Some years from now some academics may come up with the evidence of what may have happened after it's become irrelevant.

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sonoma72
Veteran Contributor

Re: Article "CME to customers, drop dead."

I would be "shocked" if Corzine is thrown under the bus.   What is "very" disturbing is, clients money is accessible, with no over sight, with no accounting to whom?  How many organizations can mysteriously "lose" a client's money?  And then use the most ridiculous, worthless, overused and apparently  most valuable word in the english language, " I am sorry." 

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k-289
Senior Advisor

Re: Article "CME to customers, drop dead."

I thought I heard that there is"" too much regulation""  and now this just appears--- also a senator  made the statement that nothing is guaranteed when one is in business---  interesting information ---

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hardnox604008
Advisor

Re: Article "CME to customers, drop dead."

It is not clear to me that acounting principles create an absolute firewall between segregatede funds and company capital.

 

With 40X leverage and the market sucking $billions out daily, not sure that anybody knows what happened.

 

That is not to excuse Corzine, there are thousands of guys and gals who could go to jail if the law could keep up with the crap that is going on here. Tens of thousand if the market turned against their bets.

 

Back to the topic- why hasn't the CME come in to back the clients as the implied historical postion would suggest?

 

And WHAT THE HELL IS AGRICULTURE GOING TO DO WHEN  IT IS REVEALED THAT THE CME IS ALSO AS ROTTEN AS EVERYTHING ELSE IN THE SYSTEM?

 

ANSWER: CALL THE PAID FOR POLITICIANS TO DEFEND THE FREE MARKET.

 

AND THEN WHAT?

 

 

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Palouser
Senior Advisor

Re: Article "CME to customers, drop dead."

Until the law DOES keep up with it there will be no end to it. So far, basically no prosecutions for the fraud that led up to 2008. Settlements, yes, but settlements instead of prosecutions of the perpetrators. The fix is in. If your wild ass bet on the market pays you are indeed a 'Master of the Universe'. If it fails the company goes broke and/or there is a settlement. But no prosecurtion against individuals for wrong doing. Any 'reforms' out of Congress are worthless w/o prosecutions. EVERYONE knows this. Including Congress. Otherwise they would fund the teeth to make it work. They don't intend to.

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sonoma72
Veteran Contributor

Re: Article "CME to customers, drop dead."

Shear genius...   The system is a work of art.  Who could imagine, robbery in plain daylight.  No weapon, no robber, no paper trail.  It is surely magic.  The banksters can literally steal money out of your savings(that day is coming) and we all sit here confused, doing nothing.  The next magic trick will be the american public bailing out Europe.  

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sw363535
Honored Advisor

Re: Article "CME to customers, drop dead."

Nox,

The law has kept up just fine.  Those charged with enforcing the laws are involved in the crimes.

Law enforcement is a government function not funding and nursing.  Our ego driven politicians(along with their beaurocracy) are on a "save the ______" mission.

Our law makers and enforcers went chasing windmills years ago and still think they have clothes on.-----------that's 2 different story book references..... We are living in a fairy tale land.

 

 

Reliable enforcement of any law has been AWOL for several years.

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