Blogman's Notes: This is one of those times when it would be appropriate to say 'We told you so!' The subject of my last two video reports was FRAUD being the NORM in Too Big to Fail banks and investment firms like Barclay's JP Morgan, Deutschebank, Goldman Sachs etc. The bigger FRAUD are the Central banks themselves like the US FED, Bank of England, the ECB and others. So in reality there is no market, there is only FRAUD. And more and more evidence of this comes to light on a regular basis and faster than ever before. The probable reason these FRAUDS such as the LIBOR fraud and the MF Global fraud are actually coming to light is that the Global Financial game is pretty much over and it is not possible to hide the FRAUD any longer because the sheer scale of the FRAUD is so huge that it is going to bring the SYSTEM down; it may happen much sooner that we anticipate. As this game has wound down these past 4 years, people have developed a sense of complacency, thinking the game will last indefinitely. However, these events like MF Global, the LIBOR fraud and now this PFG revelation are alarming signals that the Global Economic Titanic is taking water faster and faster, and will keel over and sink any moment now!
(Reuters) - Less than nine months after MF Global's collapse sent shockwaves through U.S. futuresbrokerages, news that more than half the customer funds at Iowa-based PFGBest are missing is threatening to shatter the fragile confidence in the industry.
PFGBest on Monday told its foreign exchange and commodities customers that their accounts had been frozen after an apparent suicide attempt by its chairman. A few hours later, an industry body said about $220 million in customer funds were not in the brokerage's bank accounts.
While PFGBest was 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.