Tuesday, January 10, 2012

Gasparino: Break-Up of CME on the Table

Charlie Gasparino of FOX Business states that sources have told him that "a break-up of the CME is on the table" over the lack of CME regulation of MF Global.

"Here's the thing. When you're missing $1.2 Billion of missing customer money and you don't know where it went, there's a lot of finger pointing going on.  The CME's under incredible pressure right now to either figure out where that money is, get most of it back- get all of it back- the bottom line is: even if they get all of the money back, and people are dubious about that, HOW DID IT GET MISSING!?!  Do you remember when Bear Sterns imploded?  There's a famous business columnist who said 'your money is safe at Bear Sterns'.  Ok? He was kinda right.  What he was talking about is that it's segregated.  The customer money is segregated. 
But what MF Global has shown is that maybe that sort of notion that it's all separated- IT NEVER REALLY IS!  He was right at that time, but this proves that customer money IS NOT SACROSANCT!  And that's why there's all sorts of finger-pointing going on. And I'll tell ya. If the CME didn't regulate the way it was supposed to- if they find anything on it- There's a very good likelihood you're going to see a break-up, there's no way around it.
*MUST WATCH full interview below