World Perspectives

Common Thread: Derivative Industry Scandals

This has been a tough nine-month stretch for derivative industry regulators. In just about the time they had dealt with the fallout from one major scandal, another one came along to blow up in their collective faces. And in the wake of each scandal, public criticism of the regulators and the regulatory process has grown louder. When public complaints and criticism grows, so too does the inevitable political criticism.First, in late last October one of the largest futures brokerages, MF Global, collapsed into bankruptcy with roughly $1.6 billion of supposedly segregated client money mysteriously missing. There was a deafening uproar among MF Global's many clients and within the futures industry. How could this happen? Supposedly, the CME a...

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Summary of Futures

May 26 Corn closed at $4.4725/bushel, down $0.0175 from yesterday's close.  May 26 Wheat closed at $5.8025/bushel, down $0.1775 from yesterday's close.  May 26 Soybeans closed at $11.62/bushel, up $0.0375 from yesterday's close.  May 26 Soymeal closed at $314.1/short ton, up $2.3...

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From WPI Consulting

Weighing in on strategic realignment

WPI’s team was retained by the governing board of a U.S. industry organization to review a decision, reached by vote, to invest significant assets into the development and management of an export trading company. WPI’s team conducted a formal review of this decision and concluded that the current level of market saturation would limit the benefits of the investment. Based on WPI’s analysis and recommended actions, the board subsequently reversed its decision and undertook a strategic planning effort to identify more impactful investments. On behalf of numerous clients, WPI has not only assisted in identifying strategic paths but also advised their implementation.

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