Posted on 11/07/2011 4:29:35 PM PST by prairiebreeze
snip...
Customers of the bankrupt firm are starting to complain about getting checks that bounced, having requests to transfer funds denied and receiving inaccurate account statements.
The growing litany of woes is adding to the tasks for the receiver assigned to liquidate MF Global and causing some investors to voice concern about the basic plumbing of the financial services system.
Steve Meyers, an independent futures trader in Florida, said he asked for $500,000 from his MF Global account to be wired back to him on October 28 because he was concerned about the firm filing for bankruptcy.
The money never was wired.
Instead, on November 2, Meyers received several checks from MF Global that were dated October 28. By the time he went to deposit the checks, MF Global had filed for bankruptcy on October 31 and the checks were not honored for payment
(Excerpt) Read more at reuters.com ...
Nice......
Bet the attorneys got their retainers wired and confirmed good funds...
One of the basic tenets of bankruptcy law is that everyone is treated alike, the same...and the pain and loss are shared equally. The doctrine of "fradulent conveyance" states that any significant transfer or disbursement from the bankrupt estate, up to a years BEFORE the filing, can be negated if it can be shown that it wasn't done above board.
The Madoff trustees have used this successfully to recoup billions from people who got payouts from him years before..
well, now we know what the MF stood for ...
"So, why don't you just wire that half-mil right into my account, OK?"
Yeah sure. We'll get right on it.
Tell that to the GM bond holders or the conservative Chrysler-Dodge franchisees
Slimy, Corzine, sleazy, Corzine, seedy, Corzine, scumbucket, Corzine.
When are some of these crooks gonna go to jail?
“Steve Meyers, an independent futures trader in Florida, said he asked for $500,000 from his MF Global account to be wired back to him on October 28.....”
Steve must have been a republican.
This is about customers not being able to get their own money out of what should have been kept segregated accounts. Or in the case of this article, their brokers not being able to get it for them.
Wasn't that about the time that Jon Corzine started making his big bets? So the trustee should go back and reclaim his salary as not being above board in that he had no clue about what he was doing, right? From the news today it almost looks like everybody had an acid trip in the last weeks and trashed all of the procedures and records. This will be a forensic accountant's nightmare job!
Futures exchanges, as I understand the laws and regs, are *supposed* to operate differently. See 17CFR Part 190.
There’s a *reason* for the requirement of strict segregation of customer accounts. This isn’t just play money, these are contracts for tangible products... holding up the trading capital of a grain elevator (eg) can put them out of business in as little as a month.
Madoff was running a Ponzi scheme, which isn’t regulated. The “structure” of his fund was a sham, so you’re in line behind everyone else trying to get their money from a crook. Any “gain’s which *some* individuals might have received from Madoff might be considered “ill-gotten gains” if someone can prove that they had knowledge or a special relationship with Madoff. Any gains that Madoff made were ill-gotten gains, just as the money a mobster makes from racketeering are “ill gotten gains” and subject to seizure.
Here, MF was a regulated FCM. Their prop position took down the company. The customers of MF were engaged in lawful commerce and trading, with a regulated and registered entity, and that entity operated under regulation which changes Chapter 7 of the US bankruptcy code.
You are correct, except that I suspect that the $$ had already been removed from the suposedly segregated accoubnts...
Gee, a Goldman Sachs Democrat who screwed everyone...Who’d have thunk it?
The jokes write themselves, then get banned for it. ;’) Thanks prairiebreeze.
Why, isn't it obvious?
"Mounting Frustrations"
Cheers!
my pleasure, thanks for the pings
Indeed!
FM: Jon Corzine, MF Global
Hi, Steve. Listen, I heard you wanted your $500K sent back to you, but, uh, well, I blew your cash on some bad bets I made on European debt. So.....you are screwed and them's the breaks. Hey, it's not the end of the world...just relax, kiss your cash bye-bye and move on with your life. See ya around, Jon
;’)
And just where were the Keystone Cops (SEC) in the months/years before the scheme failed? Paying those SEC lawyers big bucks to turn their heads the other way.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.