Posted on 01/10/2012 4:47:07 AM PST by Texas Fossil
In recent testimony before a Congressional committee, MF Global’s former chief Jon Corzine as well as other MF Global executives said repeatedly the didn’t know where the failed brokerage firm’s $1.2 billion of missing client money was. In fact, MF Global executives knew exactly what happened to the money, as do the regulators who oversaw the firm’s bankruptcy. The so-called segregated customer funds were repeatedly, and legally (through re-hypothication), used as collateral for MF Global loans for 100:1 leveraged bets on European sovereign debt.
Rehypothication is the 800lb gorilla (Editor’s note: make that the 2,000 lb gorilla). In 2007 I was with another fund that was the first 2.5bln casualty
A substantial portion of MF Global’s commodity clients cleared their transactions through the Chicago Mercantile Exchange and Comex, owned by CME Group (ticker: CME). The question now looming over CME’s stock is whether the company will be liable for customer losses, as the Commodity Customer Coalition, a group that says it represents some 8,000 investors—including many hedge funds–with exposure to MF Global are not going down without a fight.
(Excerpt) Read more at clearingandsettlement.com ...
No alternative, really. We certainly can’t have draconian regulation that would adversely affect capital markets. In the long run, people do the right thing on their own, as evidenced by absolutley nothing at all.
MF “Global”
Global scams are harder to nail down than local ones.
Regulations are not the real issue, absence of integrity and honesty is the “real issue”.
But this is how it is.
So, in other words, the money is now Obamas defacto
“billion dollar” election fund courtesy of the unknowing taxpayers via Corsine/Soros. Corsine gets a pardon in the end.....after all, his actions have been too big to go unforgiven.
Every investor knew this was high risk money. Dealing with a corrupt Dem makes it higher risk.
PRay for America
PRay for America
I do but sadly, I think we’re doomed.
Not that Soros need it, but Yep.
Investors are one thing, customers are quite another.
Many defrauded were Ag commodities producers who had place money with them to backup some of their trade position. They never "invested" in MF Global. Some actually purchased "glold bullion" and it was held at MF Global's facility. They owned it, it is a tangible asset, but from what I have read they are treated just like the other "customers" in the Bankruptcy. They no longer "own" the gold they paid for.
MF Global Theft Leads to CME Breakup?
Fox Business video
http://video.foxbusiness.com/v/1377288026001/gasparino-break-up-of-cme-on-the-table/
Yes, it could lead to that.
Think of the total damage due to the Commie Quisling who resides at 1600 Penn. Ave.
Ann has been warning people of ALL paper assetts.
Be very cautious in your investments!!!
There were many farmers who hedge their crop and livestock production through local brokers. MF was the clearing house for that local broker. Most people would check out the local broker extensively; but wouldn't think about who was clearing the trades behind the scenes.
These farmers were not speculating either. They are required by their lenders for example; to have some price protection in place for the crops and livestock they produce.
What does this have to do with George Soros stealing money...I think you just made that part up. The article says he *bought* the assets from Goldman...how is that stealing?
If I buy a house at a bank foreclosure, did I steal it? Seems by your defintion I did.
There are lots of reasons to not like Soros, but is FR all of a sudden against capitalism?
I am fairly certain that a crime has been committed at MF Global, and hope Corizne goes to jail for it...but lets not just make things up...good grief.
The problem is, in England the rules were different than the US. MF Global’s English bank was where the funds went. It may have been legal under the rules to use customer’s funds.
Makes not difference. This is Fraud. Corzine should do time, but that will not repay the huge losses.
Soros is NOT a capitalist.
FYI
You must have seen the History Channel show on Collaberators
Mike
Thanks for posting.
For more information on re-hypothecation:
http://newsandinsight.thomsonreuters.com/Securities/Insight/2011/12_-_December/MF_Global_and_the_great_Wall_St_re-hypothecation_scandal/
But what if you buy a car with no title and its VIN scratched out from someone who hides whenever the cops come by. How liable are you for buying obviously stolen property?
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