Why SIPC? MF Global Customers Were Thrown Under the Bus on Day 1

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jmcadg's picture

Has anyone explained how Soros (low life fuck monkey) was able to pick up the European bond trades at reduces prices AFTER MF Global went into bankruptcy. A reduction I believe that equates to something similar to the outstanding $1.2 billion?????

Also the wired transactions that were recalled BEFORE the bankruptcy that went back to JPM accounts and then ooops vanished?????

Why do I still feel slightly sorry for Corzine???? I know, I know, he's scum, but I have this overriding feeling that he was fucked in the ass by Dimon. 

I know this is somewhat stating the obvious, but for me Dimon is enemy No.1, with that weasel Blankfein just behind him.

Anyone with any sense will heed Ann Barnhardt's advice here.


And if you add this:


and this:


That pretty much sums up this shitty mess and gives you a clear indication what to do.

Good luck all this week!

tom a taxpayer's picture

Thanks for the links. Ann Barnhardt is fantastic!

ebworthen's picture

Message:  any money anywhere if not in PM's or cash in hand is at risk

AndrewCostello's picture

MF Global was just a tool of fraud, used by JP Morgan to target investors who were trying to buy hard physical assets, instead of the fantasy crap of Wall Street.  This whole thing was one big set up from start to finish, and now all that Physical Silver has been transferred to JP Morgans accounts to cover their shorts.



Read this book, its really good and quite inspiring.


NuYawkFrankie's picture

Dopey Duffy was/is just the token Dumb Oirishman - fresh off the ol' Turnip Truck - whose only function was to take the fall when the real operators had disappeared with the goodies. And all the time this deluded sorry-ass thought he was a Big Swingin D!ck (ahhhemmmm,,..  'scuse the anatomical reference ladies - I've  just been informed that the smelling-salts will be arriving shortly)

What? He thought he got to be the head of the CME 'cause he was so smart, so connected, the top of the heap, the best & brightest? Yeah right - you just gotta look at the guy!  Gimmee a freekin break! LOL!


Bagbalm's picture

Nobody was hurt badly enough to walk up and put a bullet in the head of these thieves?

AndrewCostello's picture

If they ever steal my money like that, they can kiss thier asses goodbye.

NuYawkFrankie's picture

They already have stolen your money - along with everything else you thought you had, like a fewtcha... you just don't realise it yet. When you do, you'll be kissin your own ass goodbye - 'cause their asses will be looooo..ng gone. Enjoy the show ;)

Divine Wind's picture

I was thinking the same thing.

Madoff did it smart. When he realized the game was up, he confessed and went right into custody, making it a harder to reach him.

As long as Corzine and the MFG crew are NOT behind bars...

Joebloinvestor's picture

I want to see a cage fight with Gensler and Duffy.

I want Duffy to be handicapped with a sawed off baseball bat (not a full length one).

Gensler is a fucking piece of shit who should be fired and indicted.

Read the transcript, and one finds Gensler made one phone call on a "fishing expedition" to find out how far the auditors were, then got as far away from the shit as he could.

Gensler put the CME on the hook and Duffy ain't happy about it.

ThisIsBob's picture

JPM grabbed the dough - probably legally - and blew them up, which was nervertheless an inevitability.

Either that or it was those Venezueland and Iranian hacker bastards.

Or maybe it was a Sri Lankan rouge trader.

technovelist's picture

Yes, that Sri Lankan rouge contract is a bitch to trade!

cocoablini's picture

The SIPC is a self-regulated private insurance account. It's not the FDiC. The SIPC could never insure all the accounts and lost money by even MFGlobal alone- nevermind a bunch of brokerages. It's a total, levered joke run by the party boys of wall street.
Which is why no one should have any cash in a brokerage- the system will guarantee you get your stock back( maybe) but cash will be gone and the SIPC will be broke.
And if you have an options account, the brokerages can lend you shares out for shorts which means you may be in a line of 30 other people who thought they had the same shares.
Best course of action:
- move money and cash into FDIC banks which is gov insured.
- own long only stocks you want to hold during another crash and bank holiday
- stop investing in a 401k with severe time restrictions
- by assets like gold and silver and guns
-Pay off any debt. Don't go out on margin unless you understand you could lose 100%
- assume just because you are in the "right" doesn't mean you will get your money or stock returned.

Waterfallsparkles's picture

And what makes you think that the FDIC has enough money to pay people back if a big Bank went belly up?  Banks are just a dangerous these days.

For me the safest place to put your Money is in Rental Real Estate and you still can get a decent return on your Money in Rents.

PulauHantu29's picture

Fleckenstein lost quite a bit on MF Global I read.

tom a taxpayer's picture

Incredible! Outrageous! This scheme to screw customers needs to be front page news on every TV, newspaper, investment newsletter, and investment homepage. Congress needs to haul these regulators (SEC) and industry front groups (SIPC) before Congressional investigating committee immediately. State and Federal prosecutors need to open investigations immediately. The passports of these filthy criminals need to be lifted immediately. 

This is the result of unchecked rampant Wall Street criminal activity and of not prosecuting the TBTF and their criminal aider and abettors in federal regulatory agencies and Congress. Where the hell are the prosecutors.

WTFx10's picture

"Congress needs to haul these regulators" Yes, get all the bank employees involved congress has done so much for we the people. No matter what we want they do exactly the opposite.

sun tzu's picture

The lame stream media will never educate the masses. They will continue to feed us Kardashian and Jersey Shore tripe while hiding the crimes of the elites in NY and DC. Remember this when the time comes

stant's picture

ann barnhardt said take you ball and go home. and they are

JuicedGamma's picture

I keep hoping that maybe this all a mistake and that Corzine, Gensler et al are just completely incompetent and thus are guilty of culpable negligence and of being over their heads (the Peter principal at work).  

The more that comes out the more this looks like a huge scheme to defraud customers of MFG, plus I still believe Corzine is an incompetent pompous ass.

Whatever happened to the security industries adage that customer is always first, not at the pig trough apparently.

sun tzu's picture

Corzine is a former Goldman Sachs CEO. Do you think incompetent people make it to the top of GS? He is a master criminal and professional liar

JuicedGamma's picture

Let's define competent by example.


Blankfien, CEO of Goldman when their reputation has been torn to shreds.  Employees have been instructed not to mention their employer in public, I guess because people may take affront.

Hank Paulson, Treasury Secretary during TARP, etc.

Corzine, 'nough said.


Depends on your definition.


disabledvet's picture

Gitmo. "with the Jefferson Bible" as reading material.

rufusbird's picture

Kind of ironic that the higher the officers of banking or financial institution officers are in rank, the weaker their memory seems to be. Funny thing that...

surfersd's picture

Hey I got another 14% back Friday from the trustee. My offer stills stands they can keep the other 27% if the make Corzine do a perp walk.

Why hasn't the question been asked, "Mr Corzine why did you resign the day after bankruptcy was announced instead of helping to navigate the company through an orderly wind down?" Answer " Because now I couldn't sit here and say I have not been able to review any records" 

Heard story that the outside PR person in charge of the MF Global was concerned about the connotations of the name. Corzine's response he wanted to be known as Mother Fu#king Global!! Please put him a sell with Bubba.


disabledvet's picture

"because I'm guilty and I needed to lawyer up first." sound about right?

El Oregonian's picture

"Please put him a sell with Bubba."

 How about sell him to Bubba? For let's say... a pack of smokes?

Seasmoke's picture

well that scumbag Abelow was still at MF and he said less than Corzine

Georgesblog's picture

It should be safe to say that we will see legislation and revision of regulations to protect investor assets. The public is of a mind to throw Congress under the bus. 


Teamtc321's picture

George, imo the banker lobbist would have a rule written into buried legislation within hour's to circumvent protecting inverstor assets.   

max2205's picture

The effect on PD of margin accounts closing is like a need for 1500% reverse cash need to settle back their balance sheets. If they follow rules at all

max2205's picture

Margin accounts closing like snow flakes across the world

realitybiter's picture

I was reading that there was no longer enough liquidity in the markets to support both the bond market and the stock market.  Hence, bonds go up, stocks go down.  This explains the disconnect.

As prudent, intelligent investors decide, "holy crap, nothing is safe (due to lack of legal justice and enforcement of property rights), I better close my margin account and convert it to cash", I have to imagine that this liquidity situation will only worsen.  This is classic deflationary effect of debt contraction.


Much of this would be contained if  TPTB actually did their job rather than waste their time running guns into Mexico in a circuitous attempt of "gotcha" against the constitution, while determined to give amnesty bankers....no banker left behind....

 These guys are drunk on their arrogant political agenda.  Sober, rational reason need not apply.

They could raise the capital gains tax to 50% and it would not have any affect as there will be only gains on those that went short, but no one will go short because they will have already closed their margin account and there will be no stock to short.  Fear not.  The naked short sellers will creatively counterfeit new stock.......Deflationary hell.

BWTFDIK?  I didn't go to Harvard.  I'm sure the smarty pants that are calling the shots have it all figured out.  Larry Summers is obviously a very successful man(sarc).  Ditto for Rubin, Greenspan, Honk, Timmay, and now, BSB.  The scorecard for all is a long line of dramatically reduced stock price of any company they touched, yet somehow their personal fortune went through the roof.  Kleptocracy, anyone?  Simple, brainiac embezzlers.  

This is not the America that the employees of their Father's fought for in WW2.  


If you aren't pissed off you are an idiot or very uninformed.

I am with the poster above regarding keeping the rest of stolen funds in MFG.  PMITA prison for Corzine!  MF-er....

bank guy in Brussels's picture

It is shocking for Americans to finally realise they live in what has become a totally corrupt nightmare kleptocracy, and not the 'great country' described in the propaganda they have heard all their lives ...

And what is yet to come is the realisation that, short of some great revolution, that kleptocracy likely cannot be fixed or changed via 'normal' means.

In January of 2011, there was a commentator on ZeroHedge with the username 'Fat Ass', who posted this:

« The USA had 40 years of stability and power. In the future it will be a shithole. So what? Just another new-world shithole. Life goes on. »

philipat's picture

The "light" touch of JPM?

Follow the metal??

disabledvet's picture

So I never liked brussel sprouts...but I had a tuff mum and "learned to like them."