This New York Times DealBook article describes another failure of the so called "self-regulated" financial market players. Although much smaller than MF Global, PFGBest is a "prominent player in the small world of futures trading". Just when you thought it was safe to go back in the water.
After discovering accounting irregularities, regulators on Monday essentially shut down PFGBest, a prominent player in the small world of futures trading.
PFGBest is a privately help company wholly owned by
Russel R. Wasendorf Sr. The firm reports around $400 million in customer funds invested with the firm, of which $225 million were supposed to be on deposit with U.S. Bank. But regulators found that there may have been as little as $5 million on deposit.
Also seems that Mr. Wasendorf did not have the ego of a John Corzine, either. Rather than stand up and accuse the accusers, as Corzine did, he tried to take his own life. This from the Waterloo-Cedar Falls Courier . . .
Wasendorf, founder and CEO of PFGBest, the international brokerage firm he wholly owns, reportedly attempted to commit suicide outside the corporate headquarters north of Cedar Falls, company officials confirmed Monday afternoon. Employees found him shortly after 8 a.m. and called 911.
Apparently the complete removal of your sense of personal responsibility is not a prerequisite for entry into the field of high finance. Just helps a lot. I'm keeping Mr. Wasendorf in my prayers, even though I may not be in his.
PS: ht to cosmic debris, who commented on this yesterdayand today