Warren Talks With Susan at the New York Times About the CME

Elements of the discussion I had today with Susan Craig of the New York Times just appeared in an article she developed for "Deal Book." She omits two questions we talked about however;

Why is $1B dollars such an unsolvable problem?
How can $1B destabilize the entire financial system?

I go on to suggest an answer to that question by talking about cross collateral in the Real Estate Market..

http://dealbook.nytimes.com/2011/12/14/8-questions-for-the-mf-global-hearing/

So here are eight questions that lawmakers may want to ask Mr. Duffy:

1. Mr. Duffy, it has been six weeks since MF Global filed for bankruptcy. You testified on Tuesday that you understood a CME auditor, who had spoken with an MF Global employee, learned that Mr. Corzine had known MF Global had used customer money to lend to itself. Why did it take so long for this conversation to come to your attention?

2. Do you have any evidence that the loans that you say Mr. Corzine knew of were improper?

3. Your remarks caused a lot of hubbub. Why, if you first learned of Mr. Corzine's knowledge of the loans days ago, did you not insert that information into your testimony so that Mr. Corzine could respond to it?

4. Let's step back for a moment. The CME is the primary regulator for MF Global. It was no secret in the weeks before MF Global failed that things weren't going well for the company. You have testified you dispatched two auditors to look at the company's books on the Thursday before it filed for bankruptcy. Shouldn't you have had people there before that?

5. Why didn't the CME place people at MF Global through the weekend and place specific controls on the money that was flying out of the door?

6. Who was responsible for the protection of customer money at MF Global? As the primary regulator you must have interacted with the person regularly. Additionally, who at MF Global had authority to move customer money?

7. What methods does CME have to ensure that segregated money is not tampered with by the futures brokers that it regulates?

8. How do you know other futures brokers are not misusing customer money?

Category:

Nonprofits & Activism

Tags:

• webcam
• video
• wepfinance
• new
• york
• times
• mf
• global
• cme
• Chicago Mercantile Exchange
• City
• Brooklyn
• Trading
• Nyc
• The New York Times
• Stock
• Manhattan
• Square
• Bad
• Market
• warren
• pollock
• susan
• craig

[joel1923]

@kileer7 Can't help but feel an era is coming to a rapid end now.

So this is what it must have felt like when Rome was about to be sacked by the Visigoths in 410. Or how the Greeks must have felt with the Ottomans clawing at the walls of Constantinople in 1453. Both of those empires feel because of internal rot and corruption. I guess it's our turn now. To be honest, when I was in my teens I never dreamed that I would live to see America collapse in my lifetime. Especially like this.

[joel1923]

@kileer7 Your comment reminds me of Berlin in 1945. After one of the last concerts of the Third Reich ,(held inspite of the Soviet advance on the city) , the conductor announced that cyanide was available at a table in the lobby.

The evening programme included, appropriately, the final scene from Die Götterdämmerung, the Beethoven Violin Concerto played by Gerhard Taschner, and concluded with Bruckner's Fourth Symphony, 'the Romantic'.

[PepLacy]

@CTOL1 - The mexicans did this one for 3500

[kileer7]

@joel1923 Your comment was refreshing.

[edmack4me]

@CTOL1 Not heading into depression but already in depression for last few years.

[leo00o83]

@mrzack888 Max is working for RT, the mouth piece of Putin, the head gangster in charge of enslaving thousands of North Korean slaves in Siberia that don't even know they're not in North Korea. Max is just tugging harder on the string in this anti-banking/establishment music that's already been playing for decades. He's nothing but a sensationalist that knows how to gather a fan base.

[MattyS54]

thanks for the thoughts, great you had some input on the media piece.

[mrzack888]

seems like deleveraging similar to 2008. Everything went down. My short proshare ultrashort ETFs not gaining as much as ETFs that short silver/gold. I should'a bought PM shorts, stupid stupid me!!!

[NNonRev]

"For Want of a Boot" MASH episode 41.

[mrzack888]

Max Keiser was on Alex Jones show saying that "inside sources" told Max that Corzine messed up with leverage, ended up owning tons of money to JP Morgan, he couldn't pay, JP Morgan Jamie Dimon told Corzine to cough up the money or eat a bullet. Corzine ended up stealing customer funds to pay off JP Mafia.