CME Is Legally Liable For MF Global Customer Losses

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About: CME Group Inc. (CME), Includes: BAC, C, GS, JPM, LUK-OLD, MFGLQ, MS, PNSN
by: Avery Goodman
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Avery Goodman
Long-term horizon

We were all overjoyed to learn Monday that the money missing from MF Global (OTC:MFGLQ) customer accounts had suddenly been found. One problem. It wasn't true. About $650 million is still missing. Where is it? Nobody knows. The aftermath of the MF Global debacle has been a lesson for people like Fed Chairman Ben Bernanke who believe that "increased regulation" of financial firms will solve future problems. MF Global was a supposedly a "highly regulated" entity. Its regulators are the CFTC and the supposedly "self-regulating" futures exchange CME Group, Inc. (NASDAQ:CME).

But where was the CFTC and/or the CME when MF Global customer money was being either stolen or converted to other uses by