Warren Pollock has interviewed the Commodity Customer Coalition's CEO James Koutoulas on MFGlobal and JPM's theft of MFG clients' segregated funds due to MFG rehypothecation.
Koutoulas states that the CME's Terry Duffy told him personally that the CME could have made MFG clients whole on their rehypothecated assets, but that the action would have set a $185 Billion precedent.
Read that last sentence again.
The CME refused to perform their duty to use their $8 billion bailout/slush fund to make good on segregated MF Global client funds BECAUSE MF GLOBAL IS THE TIP OF THE ICEBERG AND DOING SO WOULD SET A PRECEDENT FOR $185 BILLION IN CUSTOMER SEGREGATED FUNDS THAT HAVE BEEN HYPOTHECATED & REHYPOTHECATED AT EVERY OTHER BANK AND BROKERAGE!
Excerpt from the interview:
Well, I've met with [CME Chairman] Terry Duffy on this several times, and, um, he makes some really good arguments. He's like, "Listen. Could we make this go away? Yes. But, if we do that, there's $185 billion dollars in seg funds out there. We set a precedent that says we have to back $185 billion, and that is a much higher bar." Can they back $185 billion? No. They can't. And his point of view is that not one penny of money that was actually held by CME is lost or missing.