Posts belonging to Category Commodities and Futures

Securities Regulator Expresses Concerns about Church Bonds


Church bonds, and broker sales practices involving them, have earned a spot on the list of examination and enforcement priorities of the Financial Industry Regulatory Authority (FINRA) for 2012. FINRA is concerned about sales of church bonds arising out of brokers’ inappropriate sales practices, unsuitable product offerings and misrepresentation.

Congress Undercuts Enforcement of Investment Laws


Under the guise of reducing government spending and “onerous” regulatory burdens, the House of Representatives has introduced appropriations bills that would gut the necessary funding to carry out the Dodd-Frank financial reform act, including regulating the toxic derivatives, such as swaps and collateral debt obligations (CDOs), that blew a hole in financial markets and drove […]

Hedge Funds Hit Hard by Commodities Investments


Slowing U.S. jobs growth, slowing growth in China, concerns about another global recession, and uncertainties relating to the Euro crisis, have turned commodities bulls into bears as hedge funds beat a hasty retreat from commodities for the third consecutive month, according to Businessweek (“Hedge Funds in Longest Rout Since Global Recession,” by Tony C. Dreibus).

Regulators Expand Investigations into JP Morgan’s Derivatives Trading


The Commodities Futures Trading Commission (CFTC) is expanding its investigation into whether J.P. Morgan traders, who made the derivatives trades that resulted in losses of $3 billion and counting, engaged in fraud, among other things. The investigation is proceeding under new authority gained in the Dodd-Frank financial reform act. “U.S. Probe of J.P. Morgan Widens,” […]

Now Even Wall Street Firms Are Becoming Whistleblowers


What’s the difference between a Wall Street bank and a whistleblower? Nothing! While Wall Street railed against whistleblower protections for employees in Dodd-Frank, turns out they are falling all over themselves to blow the whistle on each other. Why? Because the first to tattle gets protections that are not offered to the second to tattle. […]

High Risk Options Trading Is Being Pushed By Some Brokerage Firms


In another example of brokerage firms catering to retail investors’ worst instincts, supposedly investor-friendly firms like Charles Schwab and TD Ameritrade are focusing on expanding their trading business beyond traditional investment like stocks and bonds into alternative investments like options because the commissions are so high. (“‘Easy Money’ Options Pushed by Online Brokers,” Bloomberg).

Everything is not ‘Fine’ at MF Global Holdings


MF Global Holdings, Ltd. (“MF Global”) filed the eighth largest bankruptcy petition in U.S. history on Monday November 1, seeking to reorganize its debt structure and continue to operate. MF Global, the broker-dealer unit, faces liquidation. The filings occurred after a potential buyer of MF Global’s assets, Interactive Brokers Group, “bolted over a discrepancy of […]

Forex Fraud Case Reveals the Value of Whistleblowers


Bank of New York Mellon has been sued in separate civil lawsuits filed by the U.S. Department of Justice and the Attorney General of New York seeking damages in excess of $2 billion related to BNY’s alleged practice of fraudulently misleading and overcharging public pension funds, universities, and other clients for foreign exchange (FX) currency […]

Do Hedge Funds Create and Burst Bubbles for their Own Benefit?


In recent years, hedge funds have become dominant players in the investment markets and the evidence suggests that hedge fund trading (which regularly involves thousands, if not hundreds of thousands, of shares) has been a significant contributing factor to market volatility.

Rogue Trader Reportedly Costs UBS $2 Billion


A UBS exchange-traded-fund director has lost $2 billion of the firm’s money, raising questions about the bank’s proprietary trading and risk management systems just three years after it lost over $39 billion and had to be rescued by the Swiss National Bank.