The Chronology Of A Collapse: Santelli's Primer On The PFG Debacle

Tyler Durden's picture

There remains some confusion about the timing of actions around the PFG Best disaster. From withdrawn salary cuts to liquidation-only orders to forced liquidations from Friday to today, CNBC's Rick Santelli provides a succinct and shocking insight into what real money accounts and brokers have dealt with and continue to try to comprehend. The sad truth about where the money went is summed up by his guest that "we're just hearing rumors; it could be, on a percentage basis, worse than MF Global."

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TruthInSunshine's picture

My Fellow Citizens,

I  send my deepest condolences to all who have been and who will be adversely affected by this unfortunate event.

I will not rest until the truth of how & why this disaster transpired is uncovered, until all innocent parties who have suffered losses are recompensed fully, and I hereby personally pledge to do everything within my power to bring the wicked miscreants that were responsible for this criminal travesty to a swift justice.

Our systems of economics and justice, which inherently rely on a robust pillar of trust in institutions, can not survive unless those who perpetrate fraud on this scale, obviously fueled by a seemingly unquenchable avarice and greed, are appropriately punished for their reprehensible deeds.

Finally, allow me to acknowledge the fine work of persons such as Mr. Rick Santelli, who seems passionate in his own personal mission to get to the bottom of this rotten carcass. His kind of vigilance helps to protect all of us who have and always will "play by the rules."




The Hon. Jon S. Corzine


Former United States Senator (D-NJ), Former Governor of New Jersey, Former CEO of Goldman Sachs, Former CEO of MF Global (a former Primary Dealer), and prominent Obama Bundler

slaughterer's picture

That letter from Corzine has to be the sickest, most evil prank that has ever made me spray out my coffee onto my screen....

Mr Lennon Hendrix's picture

Take back the power from the banks - take back the money supply!


I think I need to buy a gun's picture

And CNBC has an analyst on all week by the name of Ed Ponsi,,,,,you can't make this shit up

ghengis86's picture

they're laughing at the muppets.  as they should

azzhatter's picture

Yep, I'll bet a fair number here are still banking with JPM, BAC and the likes. It would be so simple to kill the beast, just starve it but we won't, why I'll never know

cossack55's picture

Since JPMorgue runs the EBT card business for the Frauderal Govt., I don't see them starving soon.  You, on the other hand........

knukles's picture

I wish the Unicorn* would make some serious public pronouncement to calm the markets.


* ref: Timmah as newly named by our "friends" (for that ever so very brief moment) on CNBS.  No I didn't think that up.  Don't shoot the messenger.

Pinto Currency's picture


How much physical metal is in the PFG accounts and will it be returned to account holders or, like MF Global, will "value of the holdings" (paper not actual holdings) be returned to account holders.

Is this a clip by the bullion banks to secure physical metal as it appears it may have been with MF Global?



" The trustee overseeing the liquidation of the failed brokerage has proposed dumping all remaining customer assets - gold, silver, cash, options, futures and commodities—into a single pool that would pay customers only 72% of the value of their holdings. In other words, while traders already may have paid the full price for delivery of specific bars of gold or silver—and hold “warehouse receipts” to prove it—they’ll have to forfeit 28% of the value...

...At stake is an unspecified, but apparently large, volume of gold and silver bars slated for delivery to traders through accounts at MF Global, which filed for bankruptcy on Oct. 31. Adding insult to the injury: Of the 28% haircut, attorney and liquidation trustee James Giddens has frozen all asset classes, meaning that traders have sat helplessly as silver prices have dropped 31% since late August, and gold has fallen 16%. To boot, the traders are still being assessed fees for storage of the commodities…"


And now PFG Best:

slaughterer's picture

What's up with CNBC today?  Videos of sharks (2nd day in a row), headline story about PFG (with on-site reporting). Uncle Warren spouting accelerating downward spiral doom? 

knukles's picture

Ever forget your meds?

Or, let's talk up QEwhateverthey'regonnacallit


I mean CNBS is a functionary of the rich and famous, fabulously wealthy, top 1%, of which Uncle Remus is a member, so why not, for the good of all mankind...
Oh, the humanity of it all..............

Like the econuts, save the planet horseshit.
As if fucking 401(k) statements matter anymore.

Come on, folks, the PigMen are panicking behind the Green Curtain.
Look at the charts, the interventions in markets, the news, the jawboning... including this.
No, it's not fucking OK
And they know it...
Gotta soften up the underbelly of America, inject fear and agony into the environment (come on, think Eddie Bernays, for Christ's sakes) to set it up to be ready for the BailOut Of The Century


It wouldn't work today, it'd just be another oh hemmm hawwww

Gotta bleed LOTS to call the Doctor.
No Iodine on the cuts here, gonna be Moral Ethical Transplant Surgery.

zeneta's picture

I personally know Ed Ponsi.

He's a good guy, very smart, and is in a self promotion mode.

If you notice he tends to be "perfectly vague" in his analysis.





vast-dom's picture

Manduka has not much credibility after donating 3M to PFG.

Buck Johnson's picture

I know, I couldn't believe it until I actually saw his name.  It's almost like they are pissing down our backs and not even bothering to say it's rain.

Cognitive Dissonance's picture

LH, is that you single handedly pushing up the price of Silver (and Gold) after the cartel beat it down this morning?

Heave ho! And thank you. :)

ATM's picture

Have you bought all you are going to buy? I'm haven't. I want silver at $5 and gold at $250. 

Cognitive Dissonance's picture

The cartel ain't done yet. However, each time the price gets down near these support levels I purchase more.

Time to sell everything not nailed down so I can purchase even more Silver and Gold.

youngman's picture

I bought today....prices down...but the world problems are just getting bigger...

ghengis86's picture

Ahhh....the Honorable Jon S. Corzine.  My apologies.  I had mistaken you for a differnt, less-than-honorable, cock-scuking, lying, stealing, theiving mother fucker who should be rotting in some federal pound me in the ass prison who paid off the right people and bundled funds for the right dictator to get off scot free to live in some non-extraditable country full of bunga-bunga parties, coke, hookers and the best golden toilets GS/JPM can buy with taxpayer bailout and Corzined-Muppeted-Personally appropriated funds.

my bad.

Cognitive Dissonance's picture

Don't hold back bro. Tell us how you REALLY feel.


azzhatter's picture

somebody reported seeing him hanging out in the Hamptons last week. This brazen cocksucker doesn't even feel the need to leave the country. Dictator and Dickholder got his back

cougar_w's picture

If this latest clusterfuck serves to refocus the light on Corzine, then at least something good will have come from it.

Corzine should have been wearing an orange jumpsuit a long time ago. That, or a fall from the 42nd floor.

Cognitive Dissonance's picture


What the hell are you doing to all those cities and towns out in California that's driving them into bankruptcy? Are the girls loose again?

BTW Mrs. Cog is "a ferocious fan".

cougar_w's picture

Man tell me about it, munis around here are toast. Two decades of easy credit and house flipping are coming home to roost. Not to mention all the technology jobs that went to China.

My best to the Misses. Didn't know I had an actual fan! I feel so important now. Been working on a short, fun piece where Diamond "gets into the act" as they say, turning on the charm and extracting a truly heart-felt confession from a dirty dealer. In the process giving a shout-out to an actual man-eating tiger who not long ago made headlines right here in San Fran! It's non-stop mind-numbing terror -- how can one cat be having so much fun?

Cognitive Dissonance's picture

Good to hear the epic continues. Make sure to find me in the threads and via email when you release it so I can get the word out.

I know you don't shamelessly promote your own let me do it for you. :>)

hustler etiquette's picture

I would like to view your past work that the fellow below has mentioned

cougar_w's picture

Certainly. Most current stuff can be had here:

I add to that list once in a while, you can always check back there and see what I've been up to. I have 3 in process right now, could go up any day.

Mr. Bingley's picture

For a minute there I thought this Corzine letter was written by OJ...

TruthInSunshine's picture

No worries, friends.

Eric PlaceHolder, in the extraordinary league of gentlemen, one of Obama's modern day "Elliot Ness's"  and one tough prosecutor is on the case of PFG, MF Global & massive, systemic Wall Street criminal racketeering, writ large.

StychoKiller's picture

Dyslexia temporarily got me, I read systemic Wall Street as "Sesame Street."  :>D

Michael's picture

Thanks Truth.

From almost the inception of ZH and before on housing bubble blogs, you have heard me say, "I just thank God every day for the complete and total worldwide economic collapse", as it's the only thing that will solve most of our problems. This was my way of sounding the alarm of the inevitable. How did I know, I did the math correctly and people should be getting ready as the next depression will make the great depression look like a picnic.

I do know the horrible implications of this statement in all it's gory details and I do not want to see people get slaughtered but alas, it will happen because certain people running the show are pure evil and there's nothing the sheeple will do to stop it. Too bad.

Pure Evil's picture

Ah, come on, we're not all that bad.

resurger's picture

i started loving rick, after his last interview with Nigel

nice one TIS

disabledvet's picture

Here, here! Huzzah, huzzah huzzah! Rah, rah! Shish koom-bah! (I mean doesn't anyone anymore concern themselves with HOW THIS LOOKS?! No? Cuz "the media's got our back"? REALLY?)

Rearranging Deckchairs's picture

Scarry that Banksters learned their ethics from Orenthal James (OJ). 


" I won't rest until I have searched every private golfcourse, five-star restaurant, and high class brothel for the real culprits."


Pure Evil's picture

Now his cellmate can search his rectal cavity to see if the killers are hiding up there.

I am more equal than others's picture

that should read "and prominent Obama Bumbler"

Tuco Benedicto Pacifico Juan Maria Ramirez's picture

Very good TIS!

"Former United States Senator (D-NJ), Former Governor of New Jersey, Former CEO of Goldman Sachs, Former CEO of MF Global (a former Primary Dealer), and "FORMER AMERICAN".

Bansters-in-my- feces's picture

!!!!...Free Jon Corzine.....

Bithch slap  Little fucking weasel Timmy G ...!!!!

And Fuck Benny B....!!!!!!!!

Cole Younger's picture

Investing has risks...everyone knows that...This just one example of it...more to come I am sure....

Cognitive Dissonance's picture

"we're just hearing rumors; it could be, on a percentage basis, worse than MF Global."

Rumors are often used to condition us for the coming disclosure of the existing reality.

What deeply saddens me is that it appears that PFG received some block transfers (about 700+-) of MFG clients. So some have been raped twice. Very sad indeed.

terryfuckwit's picture

Yes and rumour has it Gordon Brown sold half of all the uk's silver to bail out the short position of a large American bank. Gordon was promised the uk would be last in the que for a bond price shagging by the big boys when the crisis came...

You couldn't make this shit up...

but i just did!!

the not so mighty maximiza's picture

I heard a rumor we are fucked.

Matt's picture


That'll boost confidence and get more money back into the market for sure.

lsbumblebee's picture

Why is CNBC reporting this? Has Becky finished having oracle sex?

azzhatter's picture

she had 3 dickles in her mouth this morning although Sorkin took over on Buffett for a while

HardwoodAg's picture

Suicide...liquidation only....RoFLMFAO

Thomas's picture

Diamond definitely worthy of a forced liquidation