Go to barnhardt.biz to read all about it, or ZeroHedge. Ann Barnhardt is FEARLESS, and has been all over this story. Apparently they seized gold and silver bars that their customers owned outright (certificates with serial #’s related to each bar). Unfortunately for these customers, they never actually took possession of the bars. They thought they were ‘safely’ stored in a warehouse for them. HA! I read about ‘re-hypothecation’ on her site, and ZeroHedge, which explained a lot about the current crisis, and there is also some in-depth stuff on MF Global. Corzine and Dimon should be in prison, along with a LOT of others.
The new details bolster claims that MF Global was careless with customer money, regardless of the company’s intentions. Authorities previously found that MF Global had used roughly $200 million of client funds to replenish an overdrawn account at JPMorgan Chase in London on Oct. 28, the last business day before the firm filed for bankruptcy.
http://dealbook.nytimes.com/2011/12/28/mf-global-scrutinized-on-moving-of-money/