In reading the CNN Business news this past week I came across an interesting article about this oil trading company, New York Mercantile Exchange (NYMEX). This company sounds as though they broke every ethical boundary they could and in doing so, the law. Seven traders at this company are charged with fraud and "cheating clients."
What they did was buy energy futures as the client requested but instead of distributing the contracts to the client, they would hold on to them and see if they would return as profitable. Imagine if you go to a bank and open a CD but when it was matured in let's say 5 years, you couldn't cash in because the bank kept it for itself because it was profitable.
What puzzles me even further is that big oil is not sorry for their huge profits and rising prices. We spoke in class about reparations and whatnot, do you think that big oil should simply admit they are cheating the American people and killing the American economy? Is an apology necessary to the people?
NYMEX is a small player in the big oil puzzle but if they are corrupt is it wrong to assume that the entire industry is also corrupt? This lends thought to the HALO effect. So in thought, am I wrong to link the oil trading industry with the big oil companies? I am very confused about this topic and would love some clarification if anyone can help. Anyway, here is the article:
http://money.cnn.com/2008/04/08/markets/nymex/index.htm?postversion=2008040813
Spring Break is over...boo.
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