When the whole PFGBest story broke, there were a lot of things I didn't understand about it. I've had a lot of experience with the NFA and the CFTC, and it just didn't add up for me that PFG could've gotten away with this for what was obviously such a long time. Now I get it. Wassendorf was manipulating things from inside the NFA. Normally when a regulator tells a firm to jump, the firm asks how high. But if the firm has an inside man in the regulator's office, well, then it's a different story. That's how Wassendorf managed to stall the NFA for so long on the electronic statements, enabling him to continue to provide them with forged paper statements. This is just a massive failure on the part of the CFTC and the NFA.
Points)on 7/18/12 at 7:30am