MF Global.......

[Shakespear]

Re: MF Global.......

Remember, Corzine is Goldman Sachs. He knew EXACTLY what was going on in Europe and he knew that European paper was junk.

So him buying $450,000 worth of stock (chump change when a golden parachute is $12 million) was probable a ruse to show his confidence in the future. Old one out of the Playbook of successful crooks.

[c1ue]

Re: MF Global.......

MF Global is just the latest of one of the oldest bankster scams around, which in fact shares many of the characteristics of the original Ponzi scheme.

The original Ponzi scheme was to exploit a theoretical weakness in international postage. An international reply coupon could be bought in one country and used to buy return postage in another, even if the actual return postage would cost much more.

Not only was there insufficient supply in such a niche, Ponzi quickly figured out he didn't even need to have supply in order to take in more investment money.

MF Global did the same thing: find a theoretical way to make money for free, lever it up.

So did its predecessor, so did LTCM, the list goes on and on.

[don]

Re: MF Global.......

when there's no consequences, take all you can get . . .


Even as we hear rumblings that the MF fire is spreading, and the associated auditor of the now infamous former Primary Dealer is about to get in serious hot water, the bankrupt company itself continues to dig itself an ever deeper grave. Because according to a just filed motion by the MF Global liquidating trustee, it seems that the gross criminal activity by the company may have been orders of magnitude bigger than anyone has expected. To wit: "As a result of the apparent segregation violations and the suspension of clearing privileges, more than 150,000 customer accounts essentially were frozen on October 31, 2011, of which more than 50,000 accounts were regulated commodities customer accounts. The CME estimates that MFGI’s current segregated funds requirement is approximately $5.45 billion. Moreover, the total amount of MFGI customer segregated funds on deposit at the CME is approximately $2.5 billion, and the clearing-level segregated collateral is approximately $1.5 billion or approximately 60 percent of the MFGI customer segregated funds on deposit at the CME." Doing some quick inverse addition and we get a (w)hole of $5.45 less $2.5 less $1.5 or $1.45 billion. In other words, the theft by MF Global was not stealing hunderds of millions form its customers: it has stolen a whopping $1.5 billion! For those confused, this is not a rogue loss of $1.5 billion, something which was enough to send UBS' Kweku to prison. This is outright theft resulting from illegally commingled accounts. Our only question is will $1.5 billion in theft be enough for the first real perp walk of an Obama-friendly Wall Street executive?


Zero Hedge

[thunderdownunder]

Re: MF Global.......

A conviction - slim
OWS- sheep without a handler of a Crook.
Obama - not clea....N or R
Oh just Please jail someone.
Were is Paulson and the Perps.
I have never said it before but it is a Kleptocracy. NO one has been brought to account.
I fear no one will ever join Bubba- you know the large dark/ white Arkansas fellow (I have never been racist) -late at Night after lights out after stamping out a Thousand Number plates. But I pray continually for a supreme hand that produces Love at First sight.

[Slimprofits]

Re: MF Global.......

http://www.usatoday.com/money/indust...its/51065896/1

Federal court records show MF Global, which filed for bankruptcy-court protection on Monday, was sued in January by the trustee seeking assets for victims of Long Island ex-con scammer Nicholas Cosmo.

Cosmo was sentenced last month to 25 years in prison for stealing more than $195 million from investors told they were investing in commercial bridge loans through Cosmo's Agape World and Agape Merchant Advance. He instead diverted the money to pay for personal luxuries and risky bets on foreign currency and other futures trades through MF Global.

The New York-based brokerage was also sued last year by another trustee seeking more than $37 million stolen from investors by Michael Meisner, who ran a Ponzi scheme through Phoenix Diversified Investment in Palm Beach, Fla.

[gwynedd1]

Re: MF Global.......

and the hits just keep on a'comin...

this from over at the turd's place...


any questions?


how about comments?
just how unbelievable is it that our .gov, the fed, the treas is run by a cabal of GS alumni...
and these people are getting paid 10's of millions to step aside when they f up?
justice?
i mean chrikie mate, spitting on the street in singapore can get ya jail time and our white collar criminal class gets paid MILLIONS TO f__k up, sink the whole bloody economy, costing millions of innocent people their homes, jobs and lives

AND WHAT DOES THE POLITICAL CLASS IN THE BELTWAY DO ABOUT IT ALL?
sides blow smoke up our butts for the next 12months till their re-election...

My comment is I read, understood and am appalled.

[don]

Re: MF Global.......

Hey, they found the dough !

MF Global: $658 Million in Missing Customer Funds Found in Account at JP Morgan

Government Of the People, By the People, and For the People

According to Bloomberg, $658.8 Million in what could be the 'missing customer funds' were 'found' today in an account at JP Morgan.

I know how it is. Sometimes you forget to check your coat pockets and miscellaneous bank statements too. Sloppy bookkeeping. Tsk tsk. Oh well, just an honest mistake, right?

JP Morgan is one of the largest holders and agents of MF Global debt.

Jefferies Group underwrote MF's bond offering late this year.

MF Global’s commodity customer funds are reported to have a shortfall of $633 million, or about 11.6 percent, out of a segregated fund requirement of about $5.4 billion, according to the CFTC.

The CME is forcing the transfer of customer accounts to other brokers who are demanding double margin and issuing margin calls and forcing liquidation of positions, sometimes at widely fluctuating prices, according to some reports.

And in related news: SEC Investigates Insider Trading of MF Bonds

Hey, now that he has resigned from MF Global, perhaps Jon Corzine will consider taking Tired Timmy's place as Treasury Secretary. He is ex-Goldman you know.

Once you pass through the glass ceiling it becomes a glass floor.

from Jesse's Cafe

[gwynedd1]

Re: MF Global.......

Guess he isn't getting his severance. I hope that isn't entirely true. Something still needs to be severed.

http://www.zerohedge.com/news/jon-co...lect-severance

[gwynedd1]

Re: MF Global.......

Banksters are well used to the glass floor during their evenings when they look up to select their miniskirt clad hooker.

[doom&gloom]

Re: MF Global.......

ZH says Morgan does NOT have the money...

[don]

Re: MF Global.......

from Jesse's Cafe . . .

06 November 2011

ICE Follows CME in Lowering Margin Requirements to Mute MF Global Impact


ZeroHedge initially misinterpreted the somewhat vague release from CME, raising an alarm amongst a number of people who sent it to me. And a number of people have since been critical of their mistake, which from what I could see was understandable. The CME release was very misleading.

ZH has since corrected it. And the ICE release makes the exchanges' intentions abundantly clear. When you are on the 'cutting edge' of releasing and interpreting news, it is possible to get it wrong once in a while. And it is to your credit to correct it as soon as you can, which has been done.

Zerohedge performs a valuable service in making headlines and news available to general readership in a timely manner, and I thank them for this. Sometimes the headlines are a bit sensational but that is what it is. But on net I am glad that the site exists.

The exchange actions on margin may tend to quell some of the expected volatility from MF Global, which is good news to those who have accounts there which they are still trying to resolve.

But greater events are in motion, and it may end up having little effect.

Exchange Actions Re: MF Global Inc.

Effective immediately, ICE Futures U.S. is temporarily
lowering the Initial Margin rate for all Speculative accounts to a
level equal to the Maintenance Margin rate for all contracts. The
Initial Margin rate for hedgers already is the same as the
Maintenance Margin rate.

This action is being taken to mute the impact of the transfer of
accounts from MF Global Inc. to other clearing members that
was effected overnight, and thereby support the integrity of
Exchange markets.

http://jessescrossroadscafe.blogspot...ng-margin.html

[don]

Re: MF Global.......

With the mystery of the missing $600 million in customer funds at MF Global Financial still unresolved, a lot of customers of the failed futures firm are starting to complain about getting bounced checks.

It appears that 10 days ago, with speculation swirling that the Jon Corzine-led firm would soon file for bankruptcy, a good number of customers started to put in requests to pull their money from the New York-based outfit. But instead of simply wiring that money back to their customers, it seems MF Global tried to buy some time for itself by sending that money back via snail mail in the form of an old-fashioned check.

Those checks cut by the folks at MF Global began arriving in customer mailboxes this week, several days after the firm filed for bankruptcy on Oct. 31 in New York federal court. And by the time customers started depositing those checks, they were rejected as having insufficient funds.

2011-11-06 — reuters.com

[Thailandnotes]

Re: MF Global.......

So he gambles on the European debt crises, loses, and then snatches client money to recoup. Did he break the law or get the rules changed as the paragraphs below suggest?

“He set out to create a mini-Goldman Sachs. In the end, he built a mini-Lehman Brothers.

“Securities firms such as MF Global are supposed to keep their own money separate from their clients’. That way, clients can retrieve their assets easily if the company fails.

“In February, he successfully lobbied the Federal Reserve Bank of New York to make MF Global one of only 22 banks authorized as primary dealers of U.S. Treasury securities. The New York Fed’s president and CEO, William Dudley, was a partner at Goldman until 2007.

“Corzine later lobbied his company’s main regulator, the CFTC, on new rules, including one related to the handling of client money

“Two questions overhanging the company: Will the Securities and Exchange Commission and the FBI find evidence that this scramble for cash led MF Global to break the law and raid customers’ accounts? And will Corzine himself become a focus of the criminal investigation?”

Washington Post

[don]

Re: MF Global.......

As children many of us were taught to share . . .

MF Global Clients May Have to as Well

By Linda Sandler and Tiffany Kary - Nov 9, 2011

MF Global Inc.’s commodity customers may be required to share some of their cash with other clients unless money missing from some accounts is found, said the head of the group overseeing the liquidation of the broker-dealer.

“Distribution of the assets will be pro rata, if there’s insufficient there to fulfill all obligations,” said Stephen Harbeck, president of the Securities Investor Protection Corp., or SIPC.

About $593 million in commodity customer funds are unaccounted for, according to a person with knowledge of regulatory probes into the failure of the New York-based firm.

The trustee liquidating the brokerage, James W. Giddens, has transferred 17,000 accounts to other firms, out of 50,000 commodity accounts that he said he would relocate, while releasing almost $1.6 billion in collateral, said Kent Jarrell, his spokesman. Many remaining accountholders may have to file claims for their assets, which have to be shared fairly with other claimants, Jarrell said.

Unless the missing cash is found, people hoping to recover 100 cents on the dollar may have to give up some of it to other customers, Harbeck said yesterday a phone interview.

“Giddens can’t let out more than a low percentage of assets before he knows what he owes to all commodity customers,” Harbeck said.

By law, while SIPC can compensate securities customers for missing cash, it can’t advance funds to commodity customers to replace cash, he said.

Corzine Resignation

MF Global’s parent listed $39.7 billion in debt and $41 billion in assets in its bankruptcy filing on Oct. 31. The company was run by former New Jersey Governor Jon Corzine, who was previously co-chairman of Goldman Sachs Group Inc. (GS), until his resignation from MF Global, which was announced Nov. 4.

Customers of MF Global are asking when they’ll get their cash back, according to e-mails to Bloomberg News. If they have to file claims, the trustee must first get court approval for a system to handle claims and mail forms, Jarrell said yesterday in an e-mail.

A trustee’s duty is “to identify and marshal assets available to satisfy customer claims and to maximize the estate for all stakeholders in an orderly and fair process,” he said.

Commodity accounts that haven’t been transferred, along with securities accounts, will “most likely be subject to the claims process,” he said. Giddens is trying to find brokers to take “bulk” transfers of security accounts, Jarrell said.

Commodities Accounts

Giddens froze 150,000 customer accounts on Oct. 31, including the 50,000 commodities accounts that he said he aimed to transfer to other futures brokers.

MF Global commodity traders sought court permission yesterday to transfer cash out of the brokerage’s accounts, saying they believe the company has the funds needed to make whole each of the accountholders.

Thomas A. Butler Jr., James H. Barton Jr., Stuart Satullo and Adam Loos asked for an order that would let them withdraw 85 percent of their cash or transfer it to another registered future commission merchant, according to court papers. The men said they had all liquidated their accounts with the brokerage and held only cash. As customers, they should be given priority over creditors of the bankrupt estate, the group said.

Butler, president of Butler Brokerage Corp., is a floor broker at Intercontinental Exchange who said he regularly trades commodity futures contracts on behalf of himself and clients. He had $576,310.54 in his accounts after he liquidated his positions Oct. 31 upon hearing of the bankruptcy, Butler said in court papers.

Satullo had $200,020, Barton had $1.7 million and Loos had $6,000 in their respective accounts as of Nov. 7, according to court papers.

The case is In re MF Global Inc., 11-ap-2790, U.S. Bankruptcy Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Linda Sandler in New York at lsandler@bloomberg.net; Tiffany Kary in New York at tkary@bloomberg.net

To contact the editor responsible for this story: John Pickering at jpickering@bloomberg.net

[doom&gloom]

Re: MF Global.......

What a bunch of MF'ing crooks. SOMEONE better do some jail time for this one...

http://jessescrossroadscafe.blogspot...ts-stolen.html

09 November 2011


MF Global's Customer Assets - STOLEN - And Nothing You Hold In This System Is Safe

As suspected, MF Global brazenly took liquid assets like Treasuries and warehouse receipts, but not cash which would have been more quickly missed, from customer accounts to post as illegal collateral for emergency funding with a lender who must have known that they were receiving stolen goods.

When things fell apart, the lender simply took the collateral and liquidated it, and kept the money.

And now they are refusing to even acknowledge this transaction, and apparently the management of MF Global is not yet talking. Why? Because it was an insider deal, and they don't want to give back the stolen money.

When 'non-consequential' customers were requesting their funds, they were issued checks instead of wire transfers. The checks of course were not honored and bounced. But days later, and just hours before the bankruptcy filing, MF Global was paying BONUSES to its UK traders. Remarkable in light of how much dirty business the NY firms have been outsourcing to London. Follow the hush money.

This is a scandal of the first order, and a severe test for the Obama Justice Department, the regulatory agencies, and the exchanges. This is a great crime, undeniably premeditated, and possibly the tip of an iceberg that would shake the public confidence in a deeply corrupt financial system.

*snip*