If segregated funds aren’t segregated, major jail time is called for. Even following orders on this should be severely punished.
There is an investors protector insurance group, but as far as I know, that’s for securities. I don’t know if there’s any protection for commodity accounts once the rules of conduct and the exchange oversight have been breached.
Off the top of my head the CME’s version of SIPC needs to make this good; hope they didn’t let their insurance lapse . . .
“There is an investors protector insurance group, but as far as I know, thats for securities. I dont know if theres any protection for commodity accounts once the rules of conduct and the exchange oversight have been breached.”
I’ve heard that commodites/options/futures accounts *are not* protected. MF’s clients are F’d.
It's similar to fire insurance..if you take our coverage, then burn your house down, it's not in effect..
This was a major fraud..all the cash balances were removed and transferred. It takes several clerks..back office personnel..to do this..Corzine ordered it to be done, but the ones who actually did the transfers knew they were breaking the law..and should have refused to comply, AND reported it to the authorities..They probably went along, because they were told by Corzine, and he convinced them, that it would all be put back in a few days, no one would know, and it would save the firm, and their jobs..
They're now talking to the feds,a nd attemptig to work out plea bargains for themselves. The Feds wan direct testimony linking Corzine to the criminal acts..