Just two days ago I added a blog post "Whos' minding the store and where's my 401K funds" about monies lost by rogue traders.  At the time I ended my post by stating that "it sems the banks have learned nothing since 1995" and posed the question Have YOU?

Today, just 45 minutes ago in fact, the Associated Press Posted the following article: 

NEW YORK - A rogue trader at MF Global Ltd. rang up $141.5 million in losses on the broker's account this week, the company said Thursday, a black eye that cost the company almost a fifth of its market value.

The Bermuda-based broker said on Wednesday morning it discovered Evan Dooley, a trader at the company's Memphis, Tenn., branch, trading wheat contracts in amounts that exceeded how much he was allowed to trade.

MF Global fired Dooley and liquidated the wheat contracts, which led to a $141.5 million loss. An entry-order system that should have blocked the trades failed, the company said.  The story continues that "MF Global brokers options and futures contracts for 130,000 clients at 70 exchanges like the Chicago Mercantile Exchange, the Chicago Board of Trade and the New York Mercantile Exchange. The company said the trading loss does not threaten the $19.5 billion clients have in their accounts."

The SEC needs to step in DO SOMETHING ABOUT THIS.  If the trading companies are held accountable responsible and have to PAY BACK the monies that their rogue traders "lose" perhaps that will make them more vigilant during the ackground checks for employees.  I would also make them execute the checks and balances on their traders on a more timely basis. 

So far this year alone, we have the trader at Societe Generale who rang up more than $7 billion in losses on his company's account by placing unauthorized bets on European stock indexes and now this trader at MF Global Ltd. rang up $141.5 million in losses.  When is it going to stop? 

Here's the thing, when you lose while betting at the casino in Las Vegas, the casino has the money.   In this instance, someone has the money as well.   So I ask you again, do you know where your 401K and retirement funds are?  Do you know where the fund managers are investing those monies?  You'd better check right now.

You can read the rest of today's Associated Press story at http://www.msnbc.msn.com/id/23388778/ - I also recommend you read my blog post from February 27th below to get a full story regarding gambling traders.