US futures sector hit by possible MF Global repeat
Source: Agencies |
July 11, 2012, Wednesday
|
Print Edition
Print Edition
LESS than nine months after MF Global's collapse sent shock waves through US futures brokerages, news that more than one-half of customer funds at Iowa-based PFGBest are missing threatens to shatter the fragile confidence in the industry.
PFGBest, a 20-year old broker of foreign exchange and commodity futures, on Monday told customers their accounts had been frozen after an apparent suicide attempt by its chairman. A few hours later, an industry body said about US$220 million in customer funds were not in the brokerage's bank accounts.
While PFGBest is less than one-tenth the size of MF Global, the fallout may be larger. If the National Futures Association's report on the missing funds proves accurate, questions about the safety of the brokerage model and whether regulators have again been found wanting are inevitable.
"It's d茅j脿 vu all over again," said John Roe, co-founder of the Commodity Customer Coalition, set up in the aftermath of MF Global's collapse last October to help clients recoup their money. In its dying days, MF Global had been accused of dipping into customer funds to help meet margin calls.
"Everyone in the industry claimed this couldn't happen again, but if the money really is missing, then it's like a repeat of MF Global," Roe said.
"Anyone who thought things don't need to change, well, have to reappraise their position," he added.
The PFGBest disclosure came hours after owner Russell R. Wasendorf Sr, a 40-year veteran of futures markets, was found in his car near the company's Iowa headquarters, having apparently attempted suicide. He was in critical condition at the University of Iowa Hospitals and Clinics on Monday. A hospital spokesman said he was unable to comment on Wasendorf's status yesterday due to federal privacy laws.
It is not clear what has happened to the missing funds. PFGBest officials were not immediately available to comment beyond a notice sent to customers, saying they could liquidate open trading positions but would not be able to withdraw cash or initiate any new trades.
PFGBest, a 20-year old broker of foreign exchange and commodity futures, on Monday told customers their accounts had been frozen after an apparent suicide attempt by its chairman. A few hours later, an industry body said about US$220 million in customer funds were not in the brokerage's bank accounts.
While PFGBest is less than one-tenth the size of MF Global, the fallout may be larger. If the National Futures Association's report on the missing funds proves accurate, questions about the safety of the brokerage model and whether regulators have again been found wanting are inevitable.
"It's d茅j脿 vu all over again," said John Roe, co-founder of the Commodity Customer Coalition, set up in the aftermath of MF Global's collapse last October to help clients recoup their money. In its dying days, MF Global had been accused of dipping into customer funds to help meet margin calls.
"Everyone in the industry claimed this couldn't happen again, but if the money really is missing, then it's like a repeat of MF Global," Roe said.
"Anyone who thought things don't need to change, well, have to reappraise their position," he added.
The PFGBest disclosure came hours after owner Russell R. Wasendorf Sr, a 40-year veteran of futures markets, was found in his car near the company's Iowa headquarters, having apparently attempted suicide. He was in critical condition at the University of Iowa Hospitals and Clinics on Monday. A hospital spokesman said he was unable to comment on Wasendorf's status yesterday due to federal privacy laws.
It is not clear what has happened to the missing funds. PFGBest officials were not immediately available to comment beyond a notice sent to customers, saying they could liquidate open trading positions but would not be able to withdraw cash or initiate any new trades.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 娌狪CP璇侊細娌狪CP澶05050403鍙-1
- |
- 浜掕仈缃戞柊闂讳俊鎭湇鍔¤鍙瘉锛31120180004
- |
- 缃戠粶瑙嗗惉璁稿彲璇侊細0909346
- |
- 骞挎挱鐢佃鑺傜洰鍒朵綔璁稿彲璇侊細娌瓧绗354鍙
- |
- 澧炲肩數淇′笟鍔＄粡钀ヨ鍙瘉锛氭勃B2-20120012
Copyright 漏 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
