Re: PFG Best Losses Show Need for Financial Disclosure
Of course FXCM has plenty of justification for occupying the high moral ground in matters of honesty.
As regulators continue to investigate PFG news is coming out showing that the futures firm had been losing money for years:
PFGBest In More Trouble As Liabilities Outweigh Assets | ValueWalk
QUOTE:
"Its financial statement submitted to the court, indicated that the business has been going down since 2010. The company suffered $2.7 million in gross income losses in 2010, $1.2 million in losses in 2011, and $259,000 losses during the six month period of the current fiscal year."
PFG had recorded three straight years of losses. And yet they had just moved into an $18 million glass and steel office complex in Iowa boasting some of the most luxurious office amenities imaginable. But because PFG never had to disclose their losses they were able to give customers the impression that the firm was healthy and growing, when in fact it was sick and contracting. Customers should be aware of this before they open an account. Particularly since there is no insurance for futures or forex.
The CFTC postponed their vote on additional customer protections this week giving traders a little more time to comment.
Of course FXCM has plenty of justification for occupying the high moral ground in matters of honesty.