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The Denials Begin: Interactive Brokers Is First To Claim It Has Not Engaged In Commingling Rehypothecation

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Sun, 12/11/2011 - 12:26 | 1967506 Cassandra Syndrome
Cassandra Syndrome's picture

Rehypothecation Bitchez.....

Sun, 12/11/2011 - 12:32 | 1967518 DormRoom
DormRoom's picture

How I turned free markets into ponzi schemes: The Rehypothecation Approach.


On every primary brokers top ten reading list this year.

Sun, 12/11/2011 - 12:38 | 1967533 Cassandra Syndrome
Cassandra Syndrome's picture

Happened a lot in Ireland. The same green field for property development may have been used to secure 4 or 5 mortgages from different banks who then in turn collateralised many separate projects and sold them on internationally. That's why the government set up an SPV called NAMA, to hide the fraud, and protect the elite. Taxpayers are having to foot the €100 Billion bill with the loss of our soverneignty. It appears we're a mere microcosm of the world of 21st century finance. 

Sun, 12/11/2011 - 12:42 | 1967549 Kayman
Kayman's picture

Canadian banks engaging in rehypothecation ?  Why, that must be an error...

Dome Petroleum, Bre-X, Asset Backed Commercial Paper, and Sino Forest.  Why that must have been some other country...

Sun, 12/11/2011 - 12:51 | 1967565 CPL
CPL's picture

You left off Bell Northern Research, Nortel, BlackBerry, Tyco....lol


Practically the foundation of the entire pension pool of all Canuck pensions with the regulation changes on Canadian content in Mutual funds and pension portfolios.

Sun, 12/11/2011 - 13:00 | 1967582 GeneMarchbanks
GeneMarchbanks's picture

It's OK. I heard many 'Nucks have pensions with Fink over @ BLK. So they got that going for them...

Sun, 12/11/2011 - 13:51 | 1967684 The Big Ching-aso
The Big Ching-aso's picture



With so many denial rivers flowing at once things are bound to get damned up.


Sun, 12/11/2011 - 14:04 | 1967729 Manthong
Manthong's picture

All is well as long as you assume the position and accept double secret hyper hypothecation.




Sun, 12/11/2011 - 14:22 | 1967779 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

I can't pretend to know how fast this will unwind but i do know that THIS IS IT.  this is why europe just moved to give banks unlimited funding.  this is what will bring the house down.

Sun, 12/11/2011 - 14:49 | 1967803 Ahmeexnal
Ahmeexnal's picture

1 over unlimited is equal to....

PMs will surge big time.

But if you really want the best bang for your buck, try chickens, seeds, earthworms.

Yeah, laugh as you may today, but tomorrow you cry.

Sun, 12/11/2011 - 17:10 | 1968229 Little Red Rooter
Little Red Rooter's picture

Ya! Potatoes bitchez! 

Chickens are da bomb - eggs, meat, fertiliser, easy to keep. 


Sun, 12/11/2011 - 18:03 | 1968312 Ahmeexnal
Ahmeexnal's picture

Time is seriously running out now.

Credit crunch in eurobanks:


Swiss banker calling global financial crash:


The dominoes are about to collapse at full speed now!

Sun, 12/11/2011 - 14:40 | 1967824 trav7777
trav7777's picture

Let me just give the abridged version of what IB is disclosing above.


It's as SIMPLE AS THAT.  Brokers are in the business of trying to MONETIZE every single thing they can.  They lend your securities.  They lend the securities you have borrowed.  They lend your cash.  They lend anything in any account, anyWHERE, and there is boilerplate that permits them to do it.

IB borrows money, buys the stock for your margin trade and then lends that stock back to someone else for the cash.  At that point, YES, they probably play roulette with that cash just like all the rest of the cash the firm has access to.  When I worked on MS's NY money desk, they were doing $30B of repo transactions per day back in the early 90s.  This is orders of magnitude bigger now, trying to create money from thin air.

So who really owns anything at this point?  The answer is you own it if it's in your hands and hasn't fallen out of your canoe last camping trip.

If shit goes sideways, the BIG FISH have PURCHASED special "face down trap cards" (YuGiOh reference) from the Congress which WILL put their claims ahead of yours.  PERIOD.  Don't argue, don't dispute, don't question; accept.

Sun, 12/11/2011 - 15:30 | 1967984 macholatte
Sun, 12/11/2011 - 18:00 | 1968314 Pegasus Muse
Pegasus Muse's picture

The historical parallels between pre-war Germany and

pre-??? USA today is troubling. 

We are already well down the path to an ugly destination. 

Watch this video before you read the They Thought They Were Free

Sen. Rand Paul on Freedom Watch with Judge Napolitano - 11/29/11


Sun, 12/11/2011 - 19:54 | 1968547 Johnny B Good
Johnny B Good's picture

Everything thats beeing broadcast on a big TV Station like FOX is, even if called "Freedom Watch", by DEFINITION a smokescreen pulled up to misdirect the peoples attention.


BY DEFINITION. If it where the real deal, they wouldn't, or wouldn't be allowed to, broadcast it. PERIOD.

Sun, 12/11/2011 - 20:44 | 1968655 Bearish News
Bearish News's picture

Nah, Judge Nap is solid. He's a big Ron Paul fan, I've seen him win a few supporter polls for who people favor for VP candidate.

Sun, 12/11/2011 - 17:11 | 1968232 WmMcK
WmMcK's picture

"Ally of Justice Decisive Armor", YuGiOh bitchez.

Sun, 12/11/2011 - 17:14 | 1968238 tmosley
tmosley's picture

And yet no-one should own silver.


Sun, 12/11/2011 - 17:52 | 1968306 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

silver smells bad and attracts gypsies

Sun, 12/11/2011 - 19:20 | 1968465 trav7777
trav7777's picture

At NO POINT did I ever say people shouldn't own any silver you binary-minded idiot.

I said that they should NOT LISTEN to silver pumping moron shills like YOU as to how to allocate their wealth.  And I have correctly pointed out that real wealth in silver is too heavy to run with and may end up being a TOTAL loss.

If, for some reason, you don't have access to a TRUCK that you can drive out to wherever you're going, you face the possibility of TOTAL LOSS with silver.

1000oz bar is a mere $32k at today's prices.  That is 31.1 kilos.  Do you really think you can pack that?  That's at the upper limit of a professional soldier's pack and you ALSO plan to truck all your ammo and guns and the rest of it.  If you have $320k in silver, you are going to be forced to WALK OUT on 90% of your wealth even if you can pack 62lbs with you.

With gold?  $32k is a mere 18oz at $1700/oz.

Silver is a get rich quick scheme pumped on the internet by people who are MORONS.

Sun, 12/11/2011 - 19:52 | 1968536 Ahmeexnal
Ahmeexnal's picture

Yeah, right. So instead of silver people should...carry a wallet full of fucking credit cards.

What about your fucking home, do you also pack that with you when you have to pick up and leave?




Sun, 12/11/2011 - 19:54 | 1968551 SilverRhino
SilverRhino's picture

People should have a variety of wealth options.  

Trav is merely pointing out that you should have silver AND gold. (and guns, food, water, portable power, etc .... )


Sun, 12/11/2011 - 21:07 | 1968698 tmosley
tmosley's picture

lol, this is the first time you posted that argument.  What's wrong, did some reality finally crawl into your brain like an earwig?

You are fucking clownshoes.  Ridiculous.

Sun, 12/11/2011 - 23:14 | 1968954 tmosley
tmosley's picture

Also, thinking back, you specifically said not a month ago that there would be NO SHTF.  Yet here you are talking about how silver is a terrible investment because you can't grab it and run, as though you expect a SHTF situation.

Which is it, douchebag?  Can't have it both ways.

Sun, 12/11/2011 - 21:45 | 1968789 vamoose1
vamoose1's picture

pucker up and slurp  even if you dont have a truck, maybe that awesome brain of yours could ,  uh,  rent one,  then you can  go shopping with an 1800 dollar coin  you quarter wit

Sun, 12/11/2011 - 22:02 | 1968831 Matt
Matt's picture

While carrying 31 Kg is certainly a pain in the ass, its not near upper limit. Average Emergency Approach Load in Afghanistan is around 59 Kg http://thedonovan.com/archives/modernwarriorload/ModernWarriorsCombatLoadReport.pdf

While 30 Kg is more in line with Average Fighting Load. At the start of a panic, I don't think everyone will start shooting each other right off the bat, it could be days before that happens. These weights are counting everything being carried total, water, food, armor, etc.

Pesonally, I'm out of shape and wouldnt be carrying that, but I'm in a thinly populated rural area and don't plan on going anywhere.

Sun, 12/11/2011 - 18:07 | 1968336 Howard_Beale
Howard_Beale's picture

Bravo Trav. Well said without pissing anyone off. You feeling ok? :)

Sun, 12/11/2011 - 19:21 | 1968470 trav7777
trav7777's picture

why, because everyone agreed with me?

wait until I push them toward their mental 3rd rails.  Everyone here is aboard with the fact that the brokerage/trading/market system is a scam.

But there are many planks of MSM orthodoxy they would defend with violence.

Sun, 12/11/2011 - 19:53 | 1968544 Ahmeexnal
Ahmeexnal's picture

Yeah, such as the MSM promoted "white supremacy" shit.



Sun, 12/11/2011 - 20:18 | 1968602 Eally Ucked
Eally Ucked's picture

So maybe at the end of that 3-rail you will disclose to us your plan for the END. We always hear we're idots because we do that or this, what's your plan The Great One, commit suecide or you have that special solution you don't want to share with us?  

Sun, 12/11/2011 - 21:10 | 1968708 tmosley
tmosley's picture

Cut your balls off and have the priviledge of becoming his slave as Supreme Overlord of the Earth.

Or some such egomaniacal jerk-off fantasy.  This idiot can't even keep a family together.

Sun, 12/11/2011 - 18:11 | 1968344 PonziBeaver
PonziBeaver's picture

+1 Yeah! Dam it!

Unwind the ponzi and let the real economy come back!

Sun, 12/11/2011 - 14:54 | 1967868 Kayman
Kayman's picture


I have relatives living in Canada. The media is even more controlled than the U.S.

I don't know how Nortel slipped past me.  "What do you want the Internet to be ?  Anything you want it to be... "  Well, I'll have a ham sandwich then...

I couldn't help but notice all the insiders and the banks were out of Nortel around $80-90, before running it over $100 and down to zero.

Sun, 12/11/2011 - 12:52 | 1967570 TheFourthStooge-ing
TheFourthStooge-ing's picture

Interactive Brokers reassured everyone with:

To start, and so as not to leave any confusion as to the position of IB vis-à-vis the Thomson Reuters news article, IB DOES NOT, in any way:

[denials 1 through five snipped for brevity]

Of course they don't. They do it through their subsidiary, IARUK (Interactive Ass Rapers, U.K.).


Sun, 12/11/2011 - 16:22 | 1968125 Squid-puppets a...
Squid-puppets a-go-go's picture

yer, "does not engage in hyper hypothecation"

... comes down to a definition of hyper, then, dunnit?

Sun, 12/11/2011 - 17:15 | 1968235 defencev
defencev's picture

Listen,motherfucker. It is all very simple. You do not like or do not understand standard practices involved in margin trading, do not do it. You all, motherfuckers, like one thing: do nothing and speculate. The truth is that security markets are essential for functioning of capitalist system. And, in principle, the only necessary function of brokerages is to provide customers with an ability to buy stocks for cash.

If you do that and brokerages are not involved in fraud, the risk for you as a customer is minimal. (setting aside, of course, the risk of market fluctuations).

But no, motherfuckers, you want to trade on hude margin, you want to speculate on future prices of everything, you want to bet on sovereign debt, you want to short your mother and expect everything to be honkey dori. In real world you participate in ponzi scheme- you get what you deserve.

 I have my brokerage account with IB and I know that I am absoluely safe no matter what you , stupid motherfuckers are spewing.

Mon, 12/12/2011 - 05:43 | 1968281 Al Gorerhythm
Al Gorerhythm's picture

You seem to be as sure of yourself and your relationship with IB as all those happy campers lined up, cap in hand, outside of the office of the trustee of MF Global.

Sun, 12/11/2011 - 17:47 | 1968296 Killtruck
Killtruck's picture

Unnecessary Motherfuckering. 15 yards. Repeat first down.

Sun, 12/11/2011 - 22:58 | 1968932 Cathartes Aura
Cathartes Aura's picture

the honkey dori gets a yellow card.


Sun, 12/11/2011 - 18:50 | 1968411 pods
pods's picture

Bit "defencev" aren't we?

Who would have thought you would have the foresight to pick  a username so fitting?

Sounds like you are really confident in your statement?

Either that or you have realized someone else has first dibs on YOUR money.


Sun, 12/11/2011 - 20:00 | 1968556 defencev
defencev's picture

Well,motherfucker. You seem to do not understand elementary things. If you bought security for cash , you own it. Even if your brokers goes under, it is yours. See e.g. what happened with Lehmann customers. You are involved in leveraging and playing with derivatives and you are on your own. See what happened with MF customers. You, guys, is a bunch of ignorant, brainwashed idiots who do not understand anything and listen to other motherfuckers whose only goal is to fear monger you in total panic. What I really recommend to you does not require any kind of intellectual effort but just a little bit of house bookkeeping. Just keep track of the accuracy of "predictions" posted in the "articles" over here. And you just quickly realize who is who. If someone posted an "article" on a "website", it does not mean that it is not an absolute, fucking bullshit.

Sun, 12/11/2011 - 22:09 | 1968849 pods
pods's picture

I do understand elemetary things.  Quite well in fact.

If you are secure in your conclusions then what is the problem?

If all of us are crazy assed tin hatters, then why bother trying to convince us of anything?  You are just that much further ahead.

We have a difference of opinion, that is all.  Nothing to get upset about.  In fact, you have such courage in your convictions that you will trust your money to them.

I am not panicked at all.  Quite the contrary.  

Maybe you could follow a bit of your own advice?  Your money is safe.  



Mon, 12/12/2011 - 04:25 | 1969331 Don Keot
Don Keot's picture

My sentiments exactly.  I have never understood their compulsion to attack preppers.  If you are happy with your decision, STFU and live with it.  It's your business and your money. 

Sun, 12/11/2011 - 23:06 | 1968945 Squid-puppets a...
Squid-puppets a-go-go's picture

Sure, you own it.

but just try and redeem it

AAAAAHAHAHAHAHA, man are you a dolt. millions of investors the world over are losing their shirts to deliberately complex bullshit shadow instruments and you think you are somehow exempt?

Go on. Redeem your investment, then come back to ZH and post an image of the cheque .

Sun, 12/11/2011 - 23:07 | 1968946 Gohn Galt
Gohn Galt's picture

There are two kinds of hedgefunds left, those who think they can turn a profit for their customers and are thus are targeted to fail and those who understand the message and loose their customers money to unaccounted nameless entities. 

The commodities exchange was sold as a way for farmers to hedge against price fluctuations and weather.  A lot of remaining farmers were counting on these contracts for their survival.  Now crops prices will be low at harvest and medium and small farmers will sell at a loss.

Sun, 12/11/2011 - 23:45 | 1969013 TheFourthStooge-ing
TheFourthStooge-ing's picture

pods hit the nail on the head with:

Either that or you have realized someone else has first dibs on YOUR money.

Bingo. The butthurt is strong in this one.


Sun, 12/11/2011 - 19:09 | 1968439 IamMarla
IamMarla's picture

I hear that creepy music to 'valley of the dolls' As I read your words http://www.zerohedge.com/users/defencev .

Sun, 12/11/2011 - 19:16 | 1968454 Piranhanoia
Piranhanoia's picture

See if you can get your money tomorrow before you get upset.

Sun, 12/11/2011 - 21:31 | 1968754 Bansters-in-my-...
Bansters-in-my- feces's picture

Hey Defencev....

Eat a horse cock,mother fucker....and your going to take it and your going to like it.

Now go lay down,and behave,FuckTard.

Do NOT follow this link or you will be banned from the site!