Good thing I didn't go with them when they offer me a "cheap" $8/rt on CL.
Seriously. This issue is bigger than MF and PFG. This is seriously business how government told us to trust them because they will regulate. Government regulator is the biggest joke. I meant, if they (the regulators) are smart, they would be hired by the private sector that pay 4x the salary. Why would any smart regulators want to work for the government that pay for less?
But if all the FCM's were required to submit to electronic bank monitoring .... where the segregated account bank balance had to match the reports submitted by the FCM ... wouldn't that resolve a lot of these issues... or am I missing something?
I'm just a simple man trading a simple plan.
My daddy always said, "Every day above ground is a good day!"
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I worked for the FDIC/RTC for 6 years. They have excellent benefits and competitive salary. You very rarely hear of a government employee getting fired for anything. It's called "job security." They hire many contractors to do the actual work and they "oversee" the contractors. At least that's the way it was when I worked for them. They have annual cost of living raises too, according to a pay scale for each job level. If a government employee is paid $15 or $18 an hour for their job, a contractor hired to do the same job would be billed to the government for $25 an hour. I fail to see the "savings" there. So, not only do they pay the government employee $15 an hour, they also pay the contractor $25+ an hour to do the job the $15 govt. employee should be capable of doing.
Promotions are usually based on the "good old boy network" and in many cases it has little to do with ability to perform. There are so many "chiefs" and so few indians...known as "layers" of government and that is why no one individual can make a decision. You have to go through all those layers of "authority" or chain of command before a decision can be reached. It is very similar to the way labor unions work. If someone is hired to do one thing, he is not allowed to do anything else, even if he has free time on his hands and possesses the skills......but he is paid anyway for standing around doing nothing. This is why it takes so long to get anything done when the government is involved.
They screech that they don't have the "funding" to do their jobs properly. Not true. If they'd stop hiring all those contractors and do the actual work themselves, they might accomplish more in less time. Because of all the chain of command, there are always plenty of fingers to point when something goes wrong.....and no one wants to accept responsibility or be accountable for a mistake. And because you have so many "employees" between the actual government employees and the contractors, you have that many more people to go through to finally drill down and figure out where or who made the mistake (who to blame). It'll usually be the contractor whose head will roll. If it turns out to be the government employee, they'll get a slap on the wrist, but they'll still have a job.
And TMFT....you are correct. This is what was supposed to be done. But because Wasendorf was on the board of the NFA, he most probably was given preferential treatment. He knew how they operated so he knew how to work around it and get away with it. Because of his position, no one questioned him. It was assumed he "knew" the rules and would abide by them. But the regulators (at least one of them) finally insisted on verifying the electronic statements. Had it not been for that, he might have continued with his fraud and it could have been even worse. Who knows? If he had been allowed to continue with out being exposed, he might have eventually been able to turn things around and gotten back on track too!
It would be very interesting to find out what happens to the auditor who discovered the fraud. Were they a contractor or a career government employee....will they be praised for this performance, or will they suddenly "disappear" and be absorbed back into the private sector? I can only imagine that an auditor who was employed by the NFA (not a contractor) would be too intimidated to go up against Wasendorf and insist he allow them to verify the electronic bank statements. Maybe it was a contractor who made the discovery and NOT an auditor who was employed by the government. I still have a lot of questions that may never be answered.
Bottomline, the regulatory agencies failed to do their job
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