http://www.forbes.com/sites/robertl...lion-of-other-peoples-money/?partner=yahootix 11/08/2011 @ 9:17AM |286 views Did MF Global "Embezzle" $633 Million Of Other People's Money? Iâll tell you why I ask this probing question. I received an email this morning from a seemingly enlightened fellow quite conversant with the foibles of the futures trading business. He makes a quite convincing case for the ease by which MF Global might have grasped onto customersâ cash to meet its own margin calls on trades going south or just to resolve trading it was doing in its own name. Iâm now hearing from another expert that MF Global could use customers funds IN ANY WAY THEY LIKED> I am printing this email from a private investor conversant with commodities clearing firms and their inadequacies. You can read it yourself. Pay especial attention to the conclusion; âthat any futures commissions merchant can easily embezzle customers funds, call it an error, and no longer be liable to its customers. Market participants should really be doubtful about the CME and the ICEâs financial safeguards.â Hmmm. I inquired of my private investor what not so kosher machinations might be going on out thereâ and he sent me this answer; âWhat if other clearing firms are commingling customers funds with their own so that grain warehouses and metals vaults are at risk of losing t heir integrity?â Just minutes ago, another reader, who seems quite well informed told me; customers âare not protected in an segregated account.â MF Globalâ or any other dealer âare perfectly within their right to make a free bet on European or Junk bonds with your money. Nothing illegal in it. All of it can be parked off the balance sheetâ¦ It might be difficult to find in the accounts.â Its obviously time for a full court press on all commodities exchanges as trading in gold, copper, metals, and agricultural products has become a massive asset class. Letâs just hope it hasnât become a massive asset rip off.