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RED ALERT: It's Open Season on All Customer Funds - Ann Barnhardt
Barnhardt.biz ^ | August 10, 2012 | Ann Barnhardt

Posted on 08/11/2012 10:37:16 AM PDT by E. Pluribus Unum

RED ALERT: It's Open Season on All Customer Funds
Posted by Ann Barnhardt - August 10, AD 2012 3:33 PM MST

The NFA in collusion with the banksters, government and judiciary have achieved their goal. The entire concept of "customer segregated funds" is officially, completely, legally dead.

Guys, it is OVER. I know that many of you are still cowering in normalcy bias, unable to deal with reality, unable to face the world as it is, but you have GOT to snap out of it. The marketplace is DESTROYED. You CANNOT be in these markets. All legal protections are now officially gone.

Do you remember how I told you about the Ponzi scheme that imploded in 2007 called "Sentinel Management Group" that stole over $500 million in customer funds? The NFA was the auditing regulator of Sentinel, and the NFA admitted after the Sentinel Ponzi imploded that they signed off on their audits even though the NFA claimed not fully understanding Sentinel's books or accounting methods. In other words, the NFA didn't really audit Sentinel at all - they just PRETENDED to audit them, drew up some forms, had some robosigners sign off, and then just hoped that when the shit hit the fan, everyone in the industry would be so terrified of the NFA that no one would hold the NFA accountable for their criminal malfeasance - or even talk about it.

Sentinel took customer segregated money and fraudulently used it as the collateral on a loan from Bank of New York Mellon for $312 million to fund their own in-house proprietary trading operations. When the Sentinel Ponzi collapsed, BNYM sued to go to the front of the line of creditors - ahead of the customers of Sentinel whose money was fraudulently used as collateral, which has now been "linguistically sanitized" into the word "hypothecated".

The federal appeals court ruled yesterday that not only does BNYM stay at the front of the line, but that using customer segregated funds as collateral is NOT a crime, and that co-mingling customer segregated funds with proprietary funds is NOT fraud.

Here is the Reuters piece.

Read this quote from the ruling, which is, in essence, the entire financial market paradigm being guillotined:

That Sentinel failed to keep client funds properly segregated is not, on its own, sufficient to rule as a matter of law that Sentinel acted ‘with actual intent to hinder, delay, or defraud' its customers.

U.S. Circuit Judge John D. Tinder

What this means is that even if Jon Corzine is somehow dragged into court by private citizens, because you know damn good and well that the Justice Department will never, ever touch him, Corzine now has a legal precedent, likely from a bribed or otherwise coerced Federal Appeals Court, explicitly stating that an FCM can use customer deposits to pay its debts, and that the customers themselves are subjugated and have basically no legal right to their own monies, no matter what the law says, or what legal assurances, claims or guarantees are made to that customer about their funds held with an FCM or any other brokerage or depository institution. The "secured" party at the front of the line will always be the mega-bank who made the fraudulent loan using the stolen customer funds as collateral.

In other words, all customer funds in the United States are now the legal property of JP Morgan, Goldman Sachs, BNYM, or whichever megabank is the counterparty on the loans the FCM or depository institution takes out in order to fund its mega-levered proprietary in-house trading desks.

For the love of God, I don't know what more there could possibly be to say to snap you people out of your normalcy bias trance. You have GOT to get ALL MONIES out of the financial system NOW. This ruling sets precedence for every depository institution, not just futures brokerages. It is now legal in the United States for any financial institution to steal customer funds, borrow money against those funds for the uber-levered proprietary trading use of the financial institution, and the customers have ZERO CLAIM TO THEIR OWN FUNDS once they are in the custody of the financial institution.

The court has ruled that once your money passes out of your PHYSICAL POSSESSION, and I mean PHYSICAL possession, it is no longer yours, and you have no legal claim or legal recourse to it when it is stolen. This includes BANK ACCOUNTS. Money in a bank is in the possession of the BANK, not you. Do you comprehend this? The entire system is utterly devoid of any integrity or genuine security and is breaking down catastophically before our very eyes. You HAVE to comprehend that your money sitting in an account is no longer legally yours. You have to force your brain to process and comprehend this, no matter how incomprehensible it may seem. IT IS OVER. This is Marxist hell. We have arrived.

This ruling and precedent will be used by every brokerage, every bank, every insurance company and every pension fund to deny you your money when the financial system finally collapses, be it on Monday, or be it two years from now.

DO YOU UNDERSTAND?

You have GOT to GET OUT.

And all of this goes straight back to the criminal mafia that is the National Futures Association, and the fact that they have not actually been auditing those firms who were in the "cosa nostra", and allowing Ponzi schemes to operate with full bureaucratic protection for decades. Sentinel. PFG Best. The legal precedent enabling this protection racket and blatant fraud and thievery is fully in force, and what Corzine did at MF Global is now legally PROTECTED.

This is ecomonic treason.

Treason is a capital offense, meaning that the death penalty is fully justified, warranted and on the table, should the day ever come when a Second American Republic is established, and with it the re-establishment of the rule of law and justice in this land.

UPDATE: Yes, the South Park "And . . . It's Gone" clip is now 100% factual. Here it is. It is clean. No dirty language, just the cold, hard reality of our dead civilization.



TOPICS: Conspiracy; Government; Politics
KEYWORDS: kookstuff
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To: ConservativeMind

A majority of Republicans in the House voted AGAINST TARP.

Granted, still too many voted for it, but I wouldn’t say that virtually every Republican voted for it.

We should be busy getting rid of every Republican who voted for TARP in the House and Senate. We have made a good start on it.

By the way, Ryan voted for TARP.


41 posted on 08/11/2012 1:21:07 PM PDT by Lorianne (fedgov, taxporkmoney)
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To: ConservativeMind

The FDIC is broke !!


42 posted on 08/11/2012 2:27:58 PM PDT by nanook (Thomas Jefferson had it right.)
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To: ConservativeMind

“All FDIC insured monies are completely protected. Even if the bank ran away with everything.”

This is a true statement and a fact. However, I’m fairly sure that the FDIC is insolvent.


43 posted on 08/11/2012 2:39:41 PM PDT by Artie
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.


44 posted on 08/11/2012 3:06:51 PM PDT by twistedwrench
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To: bicyclerepair
“Wouldn’t I take a major hit cashing out my 401k?

I am lost. And I trust Ann.”

Be careful before you do something rash; there have been many many end of the world proclaimers over the decades.
Do your research. Panicking is a mistake 99.9% of the time.

45 posted on 08/11/2012 4:38:51 PM PDT by HereInTheHeartland (Encourage all of your Democrat friends to get out and vote on November 7th, the stakes are high.)
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To: the invisib1e hand

If she knows that, maybe she just isn’t very good at communicating.


46 posted on 08/11/2012 7:56:17 PM PDT by CharlesWayneCT
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To: TheWriterTX

From FDIC sourves in Wikipedia:

“The DIF’s reserves are not the only cash resources available to the FDIC: in addition to the $18 billion in the DIF as of June, 2010;[32] the FDIC has $19 billion of cash and U.S. Treasury securities held as of June, 2010[32] and has the ability to borrow up to $500 billion from the Treasury. The FDIC can also demand special assessments from banks as it did in the second quarter of 2009.[33][34]”

This looks like as of June 2010, they had $37 billion, even after bailing out so many banks that the available funds (without considering any lending facilities) had been as low as $13 billion at its all-time lowest in March 2009.

So, it shows things are improving, so what exactly is the problem again?


47 posted on 08/11/2012 10:18:38 PM PDT by ConservativeMind ("Humane" = "Don't pen up pets or eat meat, but allow infanticide, abortion, and euthanasia.")
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To: ConservativeMind
Wikipedia is not exactly the most reliable source.

FDIC Annual Reports

In 2010, they had -$7 Billion in reserves. They didn't clear the negatives until 2011.

48 posted on 08/11/2012 11:04:17 PM PDT by TheWriterTX (Riding the Long-Wave Economic Contraction, Baby!)
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To: TheWriterTX
That balance sheet shows more than $27 billion in contingent liabilities, meaning only “predicted loss,” so if things are as bad as were originally expected, then those should hold. If not, then they are wiped clean or something in between.

From their increase in cash and cash equivalents, I'd say they are doing pretty good at this time. Have you pulled your cash out of FDIC insured accounts to be "safe?"

49 posted on 08/11/2012 11:14:47 PM PDT by ConservativeMind ("Humane" = "Don't pen up pets or eat meat, but allow infanticide, abortion, and euthanasia.")
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To: Artie
Dear Artie:

The FDIC was definitely shaken during the 2008-2010 period. Their reserves were depleted because they had to liquidate, transfer accounts, etc., a substantial number of banks. If you want a good horror story, just read the FDIC reports from 2009 and 2010 to get a very clear picture of just how bad things were.

ConservativeMind and I have been going back and forth on some of the details, but as of today, the FDIC is solvent again. I don't know if they have enough in reserves to meet their goals, but they are no longer running in the negatives.

50 posted on 08/11/2012 11:18:26 PM PDT by TheWriterTX (Riding the Long-Wave Economic Contraction, Baby!)
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To: ConservativeMind
Dear CM:

Unfortunately, whatever cash on hand my family had got wiped out more than a decade ago from catastrophic medical bills. It was a long slow crawl out of the hole, but we are clear of the medical debt.

Two of our four nest eggs were also wiped out in the process.

The two remaining are my husband's 401K, which lost value, and a whole life policy, which continues to appreciate substantially.

The "new normal" is "old hat" for my family. I've known for years that retirement is no longer an option, but I have a beautiful, loving daughter and two healthy sons, so it was all worth it.

My husband and I have talked extensively about what we should do. We're still keeping an eye on Europe, and waiting for the other shoe to drop. At this point, we're keeping our expenses low and supplies on hand. I wouldn't recommend anyone make major changes, unless they are using reserves to clear debt off their ledger.

When the economy contracts again, and it will, those with little overhead and working in essential industries will fair better than those living on the edge.

51 posted on 08/11/2012 11:30:34 PM PDT by TheWriterTX (Riding the Long-Wave Economic Contraction, Baby!)
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To: CharlesWayneCT
If she knows that, maybe she just isn’t very good at communicating.

I think it's quite rudimentary to someone familiar with the organization of the industry and the scope of its regulators.

52 posted on 08/12/2012 5:06:27 AM PDT by the invisib1e hand (At what point does an escalated effort to remove this traitor commence, and what form does it take?)
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To: TheWriterTX; ConservativeMind
My FRiend in TX, I think you've fallen for arguing about something that absultely doesn't matter. You're arguing with CM about a few billion dollars and whether that makes the FDIC solvent.

The question is - how much money do the people have in banks vs how many billions are you two arguing about?

The bottom line is the FDIC doesn't have 1/1000th the amount of money it should have for it's stated purpose and prepaying premiums has only made it artificially 'solvent' RIGHT NOW. What happens when they've spent it (and likely already have)? Money printing? How solvent of them.

53 posted on 08/12/2012 10:52:33 AM PDT by SwankyC
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