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Karsten Mahlmann | |
|---|---|
| Born | June 22, 1937 Hamburg, Germany |
| Died | February 8, 2016 (aged 78) Barrington Hills, Illinois, U.S. |
| Nationality | German-American |
| Occupation(s) | Futures trader; business executive |
| Known for | Chairman of the Chicago Board of Trade (1987–1990); Chairman of Stotler & Company |
Karsten "Cash" Mahlmann (June 22, 1937 – February 8, 2016) was a German-American futures trader and business executive. He served four terms as chairman of the Chicago Board of Trade (CBOT) between 1987 and 1990, including during the Black Monday (1987) crash. A prominent figure in U.S. commodity markets, he also chaired Stotler & Company, one of the largest futures commission merchants of the 1980s.[1]
Early life and family
[edit]Mahlmann was born in Hamburg, Germany, on June 22, 1937, the eldest son of Carl-Heinz Mahlmann, a professional footballer for Hamburger SV who later became the club’s chairman, and Emmy Benz.[2] His uncle Günther Mahlmann was a coach and youth leader at HSV.
He emigrated to the United States in 1957, arriving in Texas before moving to Chicago, and became a U.S. citizen in 1964.[1]
Career
[edit]Early career
[edit]Mahlmann began as a runner at Daniel Rice & Company in Chicago and later worked in the cash grain department at Shearson Hayden (part of Hayden, Stone & Co.).[3] Immersed in the grain pits, he earned the nickname “Cash” for his focus on cash grain trading.[1] He joined the Chicago Board of Trade as a member in the early 1960s.[1]
Stotler & Company
[edit]In 1968, Mahlmann joined Stotler & Company, a futures commission merchant founded in 1962. He rose to chairman and oversaw rapid expansion, with client-segregated funds increasing from under $1 million in the late 1960s to nearly $300 million by 1990.[4] At its peak, Stotler ranked among the ten largest futures brokers in the United States.[1]
Chairman of the Chicago Board of Trade
[edit]Mahlmann was elected CBOT chairman in 1987 and was the first to serve a four-year full-time term when re-elected in 1988.[1] He eventually won an unprecedented fourth term in 1990.
His chairmanship included:
- Black Monday (1987): Mahlmann presided during the October 1987 crash. He later argued that keeping CBOT’s Major Market Index futures open gave investors a “thermometer” to gauge sentiment and aided recovery.[5]
- Ferruzzi Finanziaria affair (1989): CBOT ordered liquidation of an Italian conglomerate’s large soybean position to prevent manipulation.[6]
- FBI investigation (1989): Federal prosecutors indicted 22 CBOT traders in August 1989 after a two-year undercover probe.[7]
He also supported international outreach, serving on the supervisory board of a new Dublin financial futures exchange and pressing for liberalization of Japanese and Soviet markets.[8] Mahlmann backed electronic initiatives such as “Project A,” an after-hours trading system launched in 1990.[9]
Resignation and Stotler collapse
[edit]In 1990, regulators charged Stotler Group units with misreporting finances and misusing $5.5 million in client funds. The firm entered bankruptcy in August 1990.[10] Mahlmann resigned from the CBOT on August 1, 1990, citing the need to protect the exchange.[11] He later declared personal bankruptcy.[12]
Later life
[edit]After resigning, Mahlmann worked in London with Rosenthal Collins and later became CEO of Quantum Financial, Inc. He also traded as a floor broker at the Chicago Mercantile Exchange.[13]
Death
[edit]Mahlmann died in Barrington Hills, Illinois, on February 8, 2016, at age 78.[1]
Legacy
[edit]Mahlmann is remembered as one of the CBOT’s most influential and controversial leaders of the late 20th century. His tenure reflected both the exchange’s global expansion and the risks of rapid financial growth. Through his father Carl-Heinz Mahlmann and his uncle Günther Mahlmann, he was part of a multi-generational family active in sports, academia, and finance on both sides of the Atlantic.
See also
[edit]References
[edit]- ^ a b c d e f g "Former Chicago Board of Trade chairman dead at 78". Daily Herald. February 10, 2016. Retrieved September 11, 2025.
- ^ "Birth announcement: Karsten Mahlmann". Abendausgabe (Hamburg). June 24, 1937. Retrieved September 11, 2025.
- ^ "Karsten Mahlmann". MarketsWiki. Retrieved September 11, 2025.
- ^ "Fall From Grace at Board of Trade". The Washington Post. September 3, 1990. Retrieved September 11, 2025.
- ^ "Chicago Puts Together Its Own Rescue Plan". The New York Times. October 23, 1987. Retrieved September 11, 2025.
- ^ "Soybean Prices Dive After CBOT Acts". Los Angeles Times. July 13, 1989. Retrieved September 11, 2025.
- ^ "Jury Indicts 46 in Futures Probe". The Washington Post. August 3, 1989. Retrieved September 11, 2025.
- ^ "Futures chief wants freer Japan trade". Chicago Tribune. October 18, 1987. ProQuest 278460211. Retrieved September 11, 2025.
- ^ "Project A". MarketsWiki. Retrieved September 11, 2025.
- ^ "Board of Trade Leader Resigns". The New York Times. August 2, 1990. Retrieved September 11, 2025.
- ^ "Mahlmann Quits Chicago Board of Trade". Los Angeles Times. August 2, 1990. Retrieved September 11, 2025.
- ^ "Futures Industry Rocked by Stotler Collapse". The Washington Post. September 3, 1990. Retrieved September 11, 2025.
- ^ "Board of Trade's ex-chief finds new role". Chicago Tribune. March 3, 1994. ProQuest 283213614. Retrieved September 11, 2025.