CME Group plays old-school Chicago politics

In case you missed it, last night Jon Corzine was artfully thrown under what looked like a bomb-strapped bus being driven by the Chicago Mercantile Exchange, with no Keanu Reeves in sight.

Terry Duffy, chief executive of CME group, told the Senate hearing on MF Global that the former New Jersey governor “was aware” that money had gone missing from customer accounts.

From Duffy’s opening statement, via Congressional Quarterly:

MF Global’s segregation report for Thursday, October 27th, which was delivered to CME on Friday the 28th, also stated that MF Global remained in full compliance with segregation requirements. In fact, it showed that the firm held $200 million in excess segregated funds.

On Sunday, the CFTC informed us that they were aware of a draft segregation report for the close of business on Friday, October 28th, which showed more than a $900 million shortfall in required segregation….

… DUFFY: After receiving this information, CME remained at MF Global while MF Global attempted to identify funds that could be transferred into segregation to reduce or eliminate the discrepancy. A CME auditor also participated in a phone call with senior MF Global employees, wherein one employee indicated that Mr. Corzine knew about the loans that it had made for the customer — from the customer segregated accounts.

CME Group has provided this information and the names of these individuals to the Department of Justice and the CFTC for investigating these matters….

On Monday, October 31st, the day the SIPC trustee took over, MF Global revised its segregation report for Thursday, October 27th, indicating that the alleged $200 million in excess segregated funds should have been reported as a deficiency of $200 million.

ROBERTS: Is there anything else about this conversation you believe important for this committee to know?

DUFFY: No, sir. I was just asked to raise my right hand and tell the whole truth, so I’m telling you what I know.

CME Group plays old-school Chicago politics

Comments
comments powered by Disqus
Check out Futures Magazine - Polls on LockerDome on LockerDome