Terry Duffy of the CME Group has announced on a CNBC interview that the CME will tap $300 million of a slush fund to guarantee MF Global customers' assets which were raided by execs to secure a short term loan.
Um, the CME has a $300 million slush fund? And isn't the total amount of segregated funds still missing more like $700 million?
So the CME is suddenly volunteering to guarantee 43% of the stolen funds 2 weeks after the bankruptcy?
Something is simmering under the surface here folks- something is forcing the CME's hand to suddenly guarantee $300 million of these assets. Next week could be quite interesting.
The Doc filters the BS and provides a running commentary on the interview below:
Host- How much longer will this process take? - We don't know.
Host- How many clients are still affected right now, and how many were affected before? Its hard to say, I don't have the exact number.
Host- the CME audited MF Global's books on Oct 26th, only 5 days prior to the bankruptcy- do you have any insights as to when the clients monies may have been moved? I really don't.
Host- Do you anticipate a change in the way audits are conducted in the future? I won't predict what's going to happen in the future. MF global didn't default to us, the CME. (no sh*t, they didn't default on their bankster buddies, they defaulted on 50,000 average Joe's)
Host- Regulators are saying that when they look at the books, they are a mess. When you looked at the books on Oct 26th, was the paperwork up to standards? I can't comment on that right now.
