Seems like victims would still be able to sue for breach of fiduciary duty.
I thought Dodd-Frank fixed every loophole known to man and created financial harmony throughout the world.
Sure... they can sue their bankrupt brokerage. Might get as much as ten cents on the dollar that way, too. Maybe. If they're lucky.
The money's just gone. It was laundered away into private pockets months ago.
Actually, no. As you will see if you read the Zero Hedge commentary and the Reuters story, in the agreement between MF Global and its clients, the clients expressly give MF Global permission to hypothecate the client's assets for the business purposes of MF Global which are irrelevant to MF Global's services to its clients.
In other words, MF Global clients cannot claim a breach of fiduciary duty, for they gave MF Gobal permission to use their assets as collateral for credit issued to MF Global for its own purposes. That collateral -- i.e. the assets of MF Global's clients -- has been claimed by MF Global's creditors.
That's why the clients of MF Global won't get their money back.
Does your agreement with YOUR broker contain comparable language? I suggest you check it out.
you are correct...fraud doesn’t survive