A commodities trader demands an answer to where the money went.
Dear Congress: ‘I Have Hundreds Of Thousands Stuck At MF Global, And I Demand You Investigate The Following’
My name is Andrew Abraham from Abraham Investment Management . I am a commodity trading advisor. I have been investing in commodities for 17 years. I have never seen nor have people in the industry for 30 years plus experienced what has transpired with MF Global.
The idea I want to get across…we are not just a group of speculators… there are hedgers who use the markets to protect their products such as farmers. If client money can be stolen…nothing is safe..No bank account..no stock market account…
This is important. Farmers and jewelers routinely use commodity trading to lock in prices and protect against price drops or rises. This was the original use of commodity trading. Presumably there are many such clients who had funds at MF and who might get seriously damaged if their money isn’t returned.
A forensic accountant could determine where the money went easily enough. After all, they were bank transfers. That’s there’s been no answer these several days later as to where the money went makes me highly suspicious. Tracking this money isn’t rocket science.
Abraham concludes in his letter to Congress:
I implore you to
1.Demand that the trustees of the MF Global release at least partial of the frozen cash
2.Open immediately investigations of JP Morgan and how segregated accounts & money supposedly appear and disappear.
3. Open immediately an investigation of the regulators who failed their task in regulating the markets.
This can spin out of control very quickly. Myself and countless others are counting on you to protect the integrity of the US Financial markets.