The latest financial scandal involving a futures clearing corporation made me think of my old friend  Les Rosenthal. He was the chairman of the Chicago Board of Trade Clearing Corporation until it was merged into the Chicago Mercantile exchange in 2007.

There would occasionally be some floor traders who lost money and they would have to settle up with  Les. If they couldn’t they were out of business. Even Karsten (Cash) Mahlman , the elected Chairman of the Chicago Board of Trade had to resign when his company could not meet margin.

Never until the case of INT FCStone has a clearing corporation welshed on an obligation and penalized innocent investors