There are a few ways that one can look at the headline today in the NY Times.
First, you could say this is great for the futures industry. There was simply a misunderstanding of where money went and there was no harm no foul. Billions in equity value at ICE ($ICE) and CME ($CME) should immediately return to their stock prices since the industry is in great shape. Volume and confidence ought to come back to the marketplace. All is well.
There is no need for an insurance policy on segregated funds, because MF didn’t steal them. No new rules. Where they were stolen at PFG, justice was served. We can be pollyanna’s and forget about the whole thing. Just like when you were a little kid and had do overs in sandlot baseball.
Second, you could be totally cynical and say Corzine had enough money and political power to avoid prosecution where Russell Wasendorf didn’t. One poor sap tried to kill himself and will spend a lot of time in the pokey while the other will go off and start a hedge fund. It’s a political year, and Obama couldn’t afford yet another black eye by having one of his cronies go off to jail in an orange jumpsuit. Besides, if Corzine stays out of jail, just think of all the money he could raise. You think he is the only one in the grey area of finance? If you can buy your way out of jail with money and influence, there is a huge untapped market for political donations.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for August 20th, 2014 | John Ransom
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