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Guest Post: Legality Of MF Global Asset Transfer Questioned

Tyler Durden's picture




 

Submitted by Mark H. Melin

Legality Of MF Global Asset Transfer Questioned

Commodity Customer Coalition founder James Koutoulas is requesting that MF Global bankruptcy Judge Martin Glenn investigate three potential legal issues that are said to have occurred in transferring of MF Global assets.  The key issues include the fact that JP Morgan was able to purchase MF Global bonds at a discount without any open bidding process and the assets were apparently sold without disclosure to or approval from the U.S. bankruptcy court or trustees.  The third issue centers on JP Morgan seeking special favors from the Federal Reserve to receive priority treatment over investor segregated fund accounts.
 
The first such non-transparent movement of assets occurred when JP Morgan is said to have purchased MF Global’s Sovereign Debt at a significant discount without an open bidding process, paying $0.89 and later selling that debt to investor George Soros for $0.95.  No one is going to complain about JP Morgan generating profit.  However, purchasing assets of a bankrupt firm without an open bidding process or disclosure to the bankruptcy court and trustees is where JP Morgan may be in trouble, according to Mr. Koutoulas.  This sale could be subject to clawback provisions, legal experts speculate.  (On December 9, 2011 The Wall Street Journal reported the fact that bonds were moved to KPMG London office, which was the bankruptcy administrator, but at the time the article did not discuss sale details or approval through the bankruptcy process.  See "Corzine's Loss May Be Soros's Gain" by Gregory Zuckerman and Dana Cimilluca.)
 
The key issue is that such transfers is the bonds were purchased at a discount without open bidding and the process was not disclosed to or authorized by the U.S. Bankruptcy Court, according to Mr. Koutoulas.  “Who gave JP Morgan permission to purchase those bonds at a discount without open bidding?”
 
The second questionable movement of assets is said to have occurred when JP Morgan purchased MF Global’s stake in the London Metals Exchange (LME) without proper disclosure.  The event was widely reported at a basic level on November 28, 2011.  The larger issue, however, appears to center on the fact that such a transaction was not approved by the U.S. bankruptcy court and trustee.
 
“Was this disclosed in court?” Mr. Koutoulas rhetorically asked.  “No.  Was their trustee approval?  No.”
 
The third issue occurred in congressional testimony Thursday, December 15, 2011 where it was discovered JP Morgan asked the Federal Reserve to write a letter claiming that the segregated funds should not be categorized as client money.
 
“How many letters like this have they asked for in the past?  I want all the statistics regarding the number and content of letters,” Koutoulas questioned.  “JP Morgan wanted a ‘get out of jail free card’ from the Fed.  Guess what?  That doesn’t fly with me.”
 
“Their hubris is so severe.  They think we don’t know the industry, like we are Occupy Wall Street radicals or something and don’t have a clue or message,” Mr. Koutoulas said, noting that the CCC is comprised of experienced industry participants who understand the financial services industry from the inside.
 
Mr. Koutoulas seeks to solve the problem with JP Morgan without dragging the issue through court.  In speaking to JP Morgan, Mr. Koutoulas said “Listen, you are buying vulture MF Global claims at $0.86 ½ on the dollar.   Why don’t you pay a fair price of $0.97 ½ take the customers out of the bankruptcy and we will indemnify you from any class actions resulting from this.”  A vulture claim occurs when an MF Global claimant such as a farmer or small business person is in desperate need of cash and sells their claim to someone such as JP Morgan, who purchases the claim at a lower rate than the value at maturity.  In this example if JP Morgan purchased the claim at $0.87 and all clients were eventually "made good" JP Morgan would receive the par value of $1.00.  With the MF Global bankruptcy proceedings apparently moving along much quicker than expected, JP Morgan stands to potentially make a quick 13% return on such vulture claims.
 
Mr. Koutoulas reports that JP Morgan would not even discuss the issues.  “I can see that you disagree with me,” said Mr. Koutoulas, whose organization represents over 7,000 MF Global clients, mostly professional investors.  “They won’t even meet with me and talk with me.”
 
Mr. Koutoulas is currently working Pro Bono and many of the lawyers are working at a highly discounted rates and requested that industry participants donate to help .  “I need professional litigators and bankruptcy attorneys backing me up,” said Northwestern Law School grad Koutoulas who also operates Typhon Capital Management, which is an NFA-registered Commodity Trading Advisor and Commodity Pool Operator.  "We've had an outpouring of lawyers who want to help," Mr. Koutoulas said, sitting with a young Yale Law School grad as we spoke.
 
In calling on MF Global presiding bankruptcy Judge Glenn to investigate these issues, Mr. Koutoulas is rallying the futures industry to boycott use of JP Morgan.  “Call your FCM and if they are using JP Morgan say ‘We won’t do business with you if you work with JP Morgan,’” he said, requesting that industry participants get on Twitter and follow the #BoycottJPM hash tag.
 
For additional information on the Commodity Customer Coalition visit www.CommodityCustomerCoalition.org and on Twitter use hash tag #boycottJPM
 
For a related radio interview: http://bit.ly/vGsnh2
 
Mark H. Melin is author / editor of three books, including High Performance Managed Futures (Wiley, 2010) [http://amzn.to/vyonBA] and was an adjunct instructor in managed futures at Northwestern University.  Follow him on Twitter @MarkMelin or visit www.Go2ManagedFutures.com for additional information.

 

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Wed, 12/21/2011 - 14:47 | 2001787 GeneMarchbanks
GeneMarchbanks's picture

The article doesn't include the word "arrest" anywhere... Two stars...

That justice system is really something fierce.

“Their hubris is so severe.  They think we don’t know the industry, like we are Occupy Wall Street radicals or something and don’t have a clue or message,” Mr. Koutoulas said, noting that the CCC is comprised of experienced industry participants who understand the financial services industry from the inside.'

Yeah, shit on #occupy! Too bad your message is about as affective...

Talk about hubris.

Wed, 12/21/2011 - 14:53 | 2001824 HedgeAccordingly
HedgeAccordingly's picture

im sure he paid for lots of women like this with those sheckles - http://hedge.ly/gFWVSm

Wed, 12/21/2011 - 15:15 | 2001885 greased up deaf guy
greased up deaf guy's picture

crooks. every single one of 'em. hang 'em all.

Wed, 12/21/2011 - 15:33 | 2001949 nope-1004
nope-1004's picture

"Ask the judge to look into the legality of it?"

JPM stole all those futures contracts.  They pulled the LOC on MFG.  It was a coordinated take down, and the judge is probably paid off or told what to do.

This is 100% corruption and robbery.  The money is gone, the silver and gold certificates were a fraud, their is no metal backing those certificates.

This great theft is just the beginning.

 

Wed, 12/21/2011 - 15:29 | 2001933 distopiandreamboy
distopiandreamboy's picture

That's not fair. She looks like she has higher morals than JPM

Fri, 12/23/2011 - 00:40 | 2006439 eatthebanksters
eatthebanksters's picture

I'd do her...

Wed, 12/21/2011 - 14:54 | 2001829 johnu78
johnu78's picture

Damn you MF, give Gerald Celente his money back!!!

 

-John
http://www.youtube.com/carmarketer

Wed, 12/21/2011 - 15:06 | 2001863 WVO Biker
WVO Biker's picture

On a bright note they returned a lot, maybe all of what they owed to my new futures account.

Wed, 12/21/2011 - 15:17 | 2001890 malek
malek's picture

Only to be topped by your hubris.

Someone is doing something to resolve part of the matter within the legal system trying to stop the undermining of property rights and all you have is ridicule?

Wed, 12/21/2011 - 15:23 | 2001912 GeneMarchbanks
GeneMarchbanks's picture

Abso-lutely. Prime example of why there is no chance of any fear ever being instilled back into the banking class. NY & London will continue in endless plunder whilst some well-fed dingleberry argues semantics.

Property rights? Best of luck to you.

Wed, 12/21/2011 - 17:35 | 2002390 malek
malek's picture

There is a difference between being a cynic about the current craziness, and a cynic stating "it can NEVER be corrected." If you're one of the latter, discussion with or commentary from you serves no purpose, besides misery loves company.

Wed, 12/21/2011 - 16:02 | 2002036 NotApplicable
NotApplicable's picture

Legal system? Are you for reals?

I got your legal system, right here.

SEC sues Willie Gault

Wed, 12/21/2011 - 17:31 | 2002374 malek
malek's picture

So what kind of system is your goal, if not a working legal system?

Wed, 12/21/2011 - 15:57 | 2002014 Pegasus Muse
Pegasus Muse's picture

Bix:  "Sometimes the facts behind the manipulation are so surreal that I feel like I'm making this stuff up!"

CFTC Consults with MF Global Conspirator to Shape Law She Breaks 1 Year Later

http://www.roadtoroota.com/public/781.cfm

The battles continue rage!

 

Wed, 12/21/2011 - 17:10 | 2002281 Peter K
Peter K's picture

Shit on occupy? Yes Like voting in Chicago, i.e. early and often.

Scumbag losers:)))))))))))))))))))

Wed, 12/21/2011 - 17:34 | 2002384 Lord Koos
Lord Koos's picture

"No one is going to complain about JP Morgan generating profit."  

Then no one should be complaining about the profits of bank robbers and drug dealers either.

Wed, 12/21/2011 - 14:46 | 2001792 Cognitive Dissonance
Cognitive Dissonance's picture

The third issue centers on JP Morgan seeking special favors from the Federal Reserve to receive priority treatment over investor segregated fund accounts.

Yes, JPM needs special (fiat) favors since it can no longer get its Ponzi high without drugs and 'special favors'. Time to call their favorite Fed hooker.

Paging Bennybucks. Will Helicopter Ben please pick up the nearest white courtesy phone?

Wed, 12/21/2011 - 15:25 | 2001916 DavidPierre
DavidPierre's picture

 

The fraud cases and lawsuits, with no hint of prosecution, provide the levered force to create much wider divergence, as traders and entire firms depart the tainted crime scene that is the COMEX.

 Trust has vanished along with private accounts.

http://news.goldseek.com/GoldenJackass/1324501200.php

Wed, 12/21/2011 - 14:45 | 2001798 kevinearick
kevinearick's picture

And Mr. Soros begins to feel the black hole of his own creation...

Wed, 12/21/2011 - 16:03 | 2002042 NotApplicable
NotApplicable's picture

One can only hope. Still, I'll remain skeptical.

Wed, 12/21/2011 - 14:45 | 2001801 fuu
fuu's picture

"JP Morgan asked the Federal Reserve to write a letter claiming that the segregated funds should not be categorized as client money."

HTF does that work?

Hanging truely is too good for them.

Wed, 12/21/2011 - 14:49 | 2001804 Cognitive Dissonance
Cognitive Dissonance's picture

"HTF does that work?"

It is good to be King.

Wed, 12/21/2011 - 14:55 | 2001832 fuu
fuu's picture

Kings are good for 1 thing, giving a guillotine purpose.

Wed, 12/21/2011 - 15:33 | 2001951 FeralSerf
FeralSerf's picture

"Man will never be free until the last king is strangled with the entrails of the last priest." -- Denis Diderot

Wed, 12/21/2011 - 14:55 | 2001833 earnyermoney
earnyermoney's picture

That  line reminded me of BK's artcile discussing a client that recieved a "letter" to rescind a wire transfer. from his MF Global account. Bruce was speculating that the bank writing the letter was JPM. This post infers that the letter Bruce was referring to might have been cleared by the FED.

Wed, 12/21/2011 - 15:01 | 2001849 fuu
fuu's picture

Why do I get the feeling that JPM was going to blow up on 10/31/11?

Wed, 12/21/2011 - 15:23 | 2001914 XenoFrog
XenoFrog's picture

When you're too big to fail, you can do literally anything you want. If you get "caught" by the government who needs to make a symbolic gesture, you will pay back a tiny percentage of what you stole from the people.

Wed, 12/21/2011 - 16:10 | 2002067 NotApplicable
NotApplicable's picture

Well, you can bet that JPM will claim full immunity from any and all prosecution, as they will state they've been acting as agents of the Treasury/Fed/Invisible Sky Wizard/Whoever.

If anything positive ever does come out of all this, it will be the biggest facade maintenance project, ever. IMO though, I'm guessing they'll just scrap the facade at some point, as the costs to service it drop below its value.

Wed, 12/21/2011 - 14:48 | 2001807 justanothernerd
justanothernerd's picture

SPY is looking rich again: http://capitalcontext.com/intraday/intraday-context/

 

Looks like it's time for another profitable compression trade... 

Wed, 12/21/2011 - 14:49 | 2001809 clones2
clones2's picture

Headline from JPM tomorrow - "We don't recall buying the bonds for 86 1/2 cents on the dollar..."

Wed, 12/21/2011 - 14:50 | 2001816 tony bonn
tony bonn's picture

"The key issues include the fact that JP Morgan was able to purchase MF Global bonds at a discount without any open bidding process and the assets were apparently sold without disclosure to or approval from the U.S. bankruptcy court or trustees.  The third issue centers on JP Morgan seeking special favors from the Federal Reserve to receive priority treatment over investor segregated fund accounts."

bbbwwwaaahahahahahhahhhaaaahhahhahahahahahaha!!!

like anyone gives a fuck.....please don't do this to me i am going to pee my pants.....hhhhhahahahahahahahhahahhaha

Wed, 12/21/2011 - 14:58 | 2001838 karzai_luver
karzai_luver's picture

Never logon without the plastic panties ..................

 

 

Wed, 12/21/2011 - 14:51 | 2001818 fbrothers
fbrothers's picture

I think we need some OWS radicals involved, to potect the taxpayer. It will not be too long before they will be coming in their offices and throwing the furniture out the windows. Bloomburg's "army", my asshole.

 

Wed, 12/21/2011 - 14:55 | 2001834 TheAkashicRecord
TheAkashicRecord's picture

Mr. Koutoulas should get in touch with Mr. William K. Black

Wed, 12/21/2011 - 19:02 | 2002745 azusgm
azusgm's picture

Mr. William K. Black should get in touch with Mr. Koutoulas.

Seriously, if he really wishes to make a dent in the kleptocracy, this is his chance. He certainly won't get rich doing pro bono work, but it will raise his speaking fees.

Professor Black, go for it. Jump in and help.

Wed, 12/21/2011 - 14:55 | 2001835 Eagle1
Eagle1's picture

Move along here folks, nothing to see, move along or we will detain you indefinitely

Wed, 12/21/2011 - 14:58 | 2001839 ebworthen
ebworthen's picture

 

 

J.P. Morgan Chase is a slave trader dealing in the indentured servitude of U.S. citizens.

Jamie Dimon is a Nero who needs to be jailed or at the least tar and feathered.

Down with the Kleptoligarchy!

Wed, 12/21/2011 - 15:00 | 2001844 Pancho Villa
Pancho Villa's picture

Just amazing! People should go to prison for this. Soros should be arrested for receiving stolen property.

Wed, 12/21/2011 - 15:00 | 2001845 TheAkashicRecord
TheAkashicRecord's picture

“How many letters like this have they asked for in the past?  I want all the statistics regarding the number and content of letters,”

How many other banks are doing the same thing? 

All of this "why are these people hating on the job creators and wealthy" schtick from Dimon is an attempt to divert attention from his organizations' criminal activities; and the "interconnected" nature of these firms mean the fraud and crimes don't ever stop with one player.

"don't hate us, we're creating jobs, it's those dirty hippies who have not bathed that are the threat"

fck you Dimon, fck you

Wed, 12/21/2011 - 15:14 | 2001879 GeneMarchbanks
GeneMarchbanks's picture

'fck you Dimon, fck you'

That's not very Buddha-like... forgot the 'u' also...

Wed, 12/21/2011 - 15:16 | 2001886 TheAkashicRecord
TheAkashicRecord's picture

Yes, I forgot intentionally for H R purposes =)

And no it was not, developing compassion for these people is one of the harder tasks in my life

Wed, 12/21/2011 - 15:00 | 2001846 bank guy in Brussels
bank guy in Brussels's picture

Some of the same players in the MF Global judicial fraud farce, are the same criminal thug American legal goons involved a decade earlier, in the illegal 'contempt of court' jailing of economist and consultant Martin Armstrong, in a criminal scheme involving the US government regime and Goldman Sachs, implemented by the corrupt federal judges. Armstrong served several years in jail without trial or conviction, and had to plead guilty and accept several more years in prison as the price of not dying in jail. He was just released a few months ago.

Martin Armstrong had been very active in Europe, and that case helped convince a number of Europeans not to do business in America, and that American judges were bought and paid for by the American oligarchs.

When crooked federal judges are winking at a deal like this MF Global theft, the "professional litigators and bankruptcy attorneys" requested above, are not going to do much good. Clever, well-written legal briefs do not matter when you have those American bribed federal judges.

The law doesn't matter.

The facts don't matter.

The evidence doesn't matter.

The truth doesn't matter.

American federal judges will grin their crooked grin, and just do what they want for politically-connected friends, like big bankers. The best court filings in the world fall flat, because the US judges just glibly invent some work around, and the American corporate media will continue to pretend American courts are legitimate.

What we can expect are continuing posts on blogs, asking, 'Is there no justice in America ... ?' No, there isn't. Ask the several hundred thousand innocent people among the 2.4 million prisoners in the American gulag.

 

Wed, 12/21/2011 - 15:28 | 2001925 terryfuckwit
terryfuckwit's picture

uk is very similar..Francis Bennion wrote the consumer credit act.. which was repeatedly taken to the supreme court to have it's teeth removed.. Francis author of the act actually went to court to explain the judges were making incorrect decisions and was referred to as "that lefty".. Parliament meant well and Bennion did his job writing the act which if implemented would have made subprime mortgages illegal and rechurning of loan detailing much more explicit.. If the CCA ever got implemented this crisis would never have occurred... and History has a record of this... google the John Storey story....Bennion could see all this coming and parliament also failed to stop.. the cesspit of supreme court judges bought and paid for by bankers...

Wed, 12/21/2011 - 15:33 | 2001945 GeneMarchbanks
GeneMarchbanks's picture

What are you bitches on about? Here's a formula so you can stop babbling:

US + UK banks = Untouchable

End of story.

Wed, 12/21/2011 - 17:25 | 2002355 FreudianSlip
FreudianSlip's picture

Spot on.  American law and it's corrupt judges are used to protect the massively rich guilty career criminals.

Wed, 12/21/2011 - 15:01 | 2001848 karzai_luver
karzai_luver's picture

back of the bus, bitchez!

 

ha ha what justice what law --- really where do you think you are?

 

Wed, 12/21/2011 - 15:04 | 2001857 karzai_luver
karzai_luver's picture

Dimon and his buddies have killed more jobs than most.

They don't create jobs and they will drain the life out of any small fry that tries to compete with them using their fascist gvt reb/blue scumbags.

 

 

Wed, 12/21/2011 - 15:29 | 2001930 XenoFrog
XenoFrog's picture

If you rob a bank and steal $10,000. You will go to prison and be forced to give back the money.

If the bankers steal billions of dollars, they don't go to prison, and they're forced to pay a  5-10% finders fee to the Feds (not the victims).

Sounds like a just system to me.

Wed, 12/21/2011 - 15:39 | 2001969 GeneMarchbanks
GeneMarchbanks's picture

It is. Make sure you write to your representative. I hear it's effective.

Wed, 12/21/2011 - 15:04 | 2001859 ThirdCoastSurfer
ThirdCoastSurfer's picture

Chase was also acting in the capacity of an advisor to MFG & breach of duty is proximate as breach of duty makes the predatory acts that followed all that more egregious. 

Wed, 12/21/2011 - 15:05 | 2001862 Georgesblog
Georgesblog's picture

The fur flies, now. If the court rules that MF Global has no fiduciary obligation to investors, and no wrongdoing was part of the sale process, last one out the door, turn out the lights. If that happens, the power will be cut off, if you get trampled in the rush.

http://georgesblogforum.wordpress.com/2011/11/02/the-daily-climb-2/

Wed, 12/21/2011 - 15:15 | 2001883 topcallingtroll
topcallingtroll's picture

You are right this time, but please quit pushing your blog.

It is embarrasing to you even if you dont realize it.

Wed, 12/21/2011 - 17:18 | 2002318 slewie the pi-rat
slewie the pi-rat's picture

he doesn't answer very often, t_c_t, if at all

i think he must have one of his corporate VPs handle the blogging and there is never a problem as long as every spam attack is in caps!

but the person may be afraid to ask to do more to help, possibly b/c george is a fuking nutCase

or, alternately, he does so well on other site [which shall remain unnamed] he hasn't enuf time to do more than bless us w/ his never-ending 1-ways and links to what he is saying, elsewhere

which is where i hope he prospers during the rest of the holiday season, next year, & forever

Wed, 12/21/2011 - 15:12 | 2001875 topcallingtroll
topcallingtroll's picture

Traders are not stupid.

This has done long term damage to the CME.
They can pretend to have no interest and stay out of it.

To have any real credibility in the future CME should assist those fighting against JPM.

I suspect JPM probably owns the CME too. Not worth pissing off JPM for a few traders with a few piddly accounts.

One warehouse receipt for gold or silver? You are a nobody in their world.

Wed, 12/21/2011 - 15:18 | 2001892 AnAnonymous
AnAnonymous's picture

More consumption of resources, US citizen style.

Question answer is already known: all legal.

Then why ask it when you know as you make the answer?

It enables activity, activity gives well rewarded jobs in this case.

More empty resources consumption, US citizen grand style.

Wed, 12/21/2011 - 15:33 | 2001903 cranky-old-geezer
cranky-old-geezer's picture

 

 

This article is complete bullshit.

First, bankruptcy judges don't "investigate" anything.  That's the job of lawyers.

Second, MFG didn't "transfer" anything.  Re-hypothecated customer assets were grabbed by counterparties, perfectly legal under current bankruptcy law.

Third, John Corzine had to know what was going on.  His testimony to congress that he doesn't know where the money is may be true, but he had to know customer assets were being re-hypothecated, also perfectly legal under current law

...and is WHY anyone leaving cash or assets in a brokerage account is a fool.

Wed, 12/21/2011 - 15:22 | 2001906 vast-dom
vast-dom's picture

".....able to purchase [MF Global] bonds at a discount without any open bidding process and the assets were apparently sold without disclosure to or approval from the U.S. bankruptcy court or trustees...." this shit happens DAILY; in fact, the entire bond market is predicated on this kind of illegal insider trading. 

Wed, 12/21/2011 - 15:28 | 2001929 dcb
dcb's picture

jp morg in a scam gaming thye system. you gotta be kidding?

Wed, 12/21/2011 - 15:30 | 2001935 DutchMadness
DutchMadness's picture

The Day of Judment will come, although it will take a little while..

Wed, 12/21/2011 - 15:37 | 2001964 americanspirit
americanspirit's picture

Bernie and Jonnie were liers

Oh Lordy how they could lie.

Let's hope they'll be cellmates together

And Lord willing that's where they'll die

They were just plain crooks -

And Jamie's next in line.

Wed, 12/21/2011 - 15:37 | 2001965 j0nx
j0nx's picture

Legal schmegal. Legality is for people without thugs with M4's and body armor.

Wed, 12/21/2011 - 15:39 | 2001970 Orange Pekoe
Orange Pekoe's picture

Fighting over the corpse.

Wed, 12/21/2011 - 16:14 | 2002050 swani
swani's picture

I am actually quite surprised at some ZHedgers' rather mean sprited responses to this guy.

He's 30 years old, has never practiced law before, never even wanted to be a lawyer, but he's on a mission to rectify a wrong, devoting his time and energy for free, atleast trying to do something.

Do people think that his actions are something to be mocked? Is it silly, to even try, to take on an adverary like JP Morgan?

No wonder these people think they can get away with stealing everyone blind. Everyone seems to roll over like it's not even worth a fight, everyone is so sure that they will lose, so why bother.

If you ask me, this is a bullshit attitude, I'm sorry but it is.

This kid's actions have recovered more money, faster, for these 7,000 account holders, than they would have gotten on their own. And I'm betting that this isn't the end of their fight. 

Word of mouth is more powerful than the media, special forces are more effective than standing armies. People can fight back, should fight back, and when they do, people should support them, instead of making fun of them for trying with this self defeating attitude that sounds to me, like it's saying that we should all be slaves and like it.

I am reminded of this lesson that we learned in this mandatory self defense class in highschool. This former FBI guy told us that if someone comes to you with a knife or a gun and asks you to get in his car, if you do, you're as good as dead and you're better off fighting and getting stabbed or shot in the parking lot than getting into that car. Of course this thought really freaked us all out for life, and funnily enough, one of my class mates escaped an abduction, years later, this way.

I know that was random, but I feel, with the Patriot Act mirroring the Nazi Constitution and the future looking so bleak, we are at point, where going along quietly without fighting, hoping for the best, is like getting into that serial killer's car.

 

 

 

 

 

 

 

Wed, 12/21/2011 - 16:27 | 2002132 NotApplicable
NotApplicable's picture

Point taken, but to me the act of "getting in the serial killer's car" is synonymous with "requesting that MF Global bankruptcy Judge Martin Glenn investigate three potential legal issues that are said to have occurred in transferring of MF Global assets."

If you want to fight in the street, then you literally need to get out in the street, and point out the collusion between the legal system and the financial system. Once you get into the car (in this case, the courtroom), you're as good as dead.

In other words, never, ever play their game on their field. All you do is legitimize the game, and empower your opponents. The idea that outsiders can use this system against the insiders is to not understand how it operates. Your only chance is from the outside, where one can illuminate the facade for what it is.

Wed, 12/21/2011 - 17:28 | 2002367 FreudianSlip
FreudianSlip's picture

Yup...Mossad never waits to go to court...retribution in 48 hours bitches.

Note the top monied investors got their money early and didn't get burned.  Can't burn guys that don't believe in courts.

Wed, 12/21/2011 - 19:45 | 2002864 azusgm
azusgm's picture

I'm not an attorney, but it seems that these filings put marks on the case and possibly may be used later on appeal.

Wed, 12/21/2011 - 16:28 | 2002139 ebworthen
ebworthen's picture

Exactly, well said.

Wed, 12/21/2011 - 17:00 | 2002237 Peter K
Peter K's picture

Swani,

I love ya.

You are totally correct about the Patriot act. You also need to mention that Obamacare is a rip off of the Bismarkian/Hitlerian healthcare model down to the death panels.

As far as the class action, I am actually sorry I didn't have funds with MF, because if I did, I would be backing this guy 100%.

And I really mean that:)

Thu, 12/22/2011 - 10:24 | 2002277 cranky-old-geezer
cranky-old-geezer's picture

 

 

You got in that serial killer's car when you decided to put assets in a brokerage account.

You did it voluntarily, hoping you would make a profit with that serial killer.

He wasn't holding a gun on you. He was waving money at you.  You voluntarily got in his car.

 

Wed, 12/21/2011 - 16:06 | 2002054 Scalaris
Scalaris's picture

 

 

Derivatives and the Bankruptcy Code: Why the Special Treatment by Franklin R. Edwards & Edward R. Morrison

 

"..Our analysis, however, should worry members of Congress and legislators in other countries. They have been lobbied heavily by special interest groups(such as ISDA) to expand the special treatment of derivatives on grounds tha tsuch legislation is necessary to prevent a systemic meltdown in OTC derivatives markets should a derivatives counterparty suffer financial distress. Derivatives and the Bankruptcy Code133Our analysis casts serious doubt on this proposition. Systemic risk may be areal threat, but bankruptcy law has no role to play in addressing it."

 

Restructuring the Banking System to Improve Safety and Soundness by Thomas M. Hoenig & Charles S. Morris

"We see no reason why the government and taxpayer should step in and insure positionstaken by sophisticated investors with abilities to analyze the risk of securities that back their loans. Therefore, there is no rationale for the government to provide guarantees even in exchange for heavier regulation and supervision of repo markets."

 

Thomas M. Hoenig, the president of the Federal Reserve Bank of Kansas City, says in a May report that the special bankruptcy treatment extended to mortgage-backed repos in 2005 must be reversed to prevent future financial crises.

 

Wed, 12/21/2011 - 16:07 | 2002056 Joebloinvestor
Joebloinvestor's picture

I would like to know the NAMES of the people who authorized all the crap trades.

You can bet that the FBI and the WORTHLESS JUSTICE DEPT UNDER E. HOLDER are aware of what happened.

The problem is keeping the whole thing under wraps until after the election.

I want to see Gensler fired then indicted, the fuck tard.

Wed, 12/21/2011 - 16:29 | 2002140 NotApplicable
NotApplicable's picture

He'll likely get promoted.

Wed, 12/21/2011 - 17:04 | 2002257 indio007
indio007's picture

You mean the same DOJ that just bailed up BOA's stock price from plummetting with a pathetic excuse for a settlement.

 

http://business.financialpost.com/2011/12/21/boa-agrees-to-pay-335m-over-mortgage-discrimination-case/

 

Wed, 12/21/2011 - 16:42 | 2002180 Outlaw Of The W...
Outlaw Of The Wasteland's picture

Are we still trapped into believing that this a country of laws?

There is no going back now that the presumed authority has none.

gingrich could very easily have been shot and killed today.

A little reminder to the 535 traitors in mordor on the potomac.

Wed, 12/21/2011 - 16:52 | 2002208 Peter K
Peter K's picture

Great post. Why not.

I'm going to call my liquidity providers tomorrow and see which one of them doesn't use JPM. If I can find one(?), you know where my flow is going:)

BTW, how can you not like a guy who says the following:

“Their hubris is so severe. They think we don’t know the industry, like we are Occupy Wall Street radicals or something and don’t have a clue or message,”

UP TWINKLES :)))))))))))))))))))))))))))))

Wed, 12/21/2011 - 17:13 | 2002291 FreudianSlip
FreudianSlip's picture

Question here.  Of the 36,000 MF Global emptied accounts...how many were money laundering accounts?  Traditionally, people with money laundering accounts don't run around demanding federal criminal investigations.  This is why investment bankers love money laundering, nobody snitches.

And...why does no one in here ever talk about the rampant money laundering (10%-20% fees) all these investment bankers crave for getting no fault cash injections.  Part of this is about the Federal Reserve & money laundering sitting all together in world wide investment banks.

 

 

 

 

Wed, 12/21/2011 - 19:46 | 2002865 MobBarley
MobBarley's picture

This is pathetic. The whole thing is pathetic.

Look at it. Look at this huge steaming mass of dogshit

once called a respectable way of life.

They've made a mockery of every thing.

Complete Utter Lawlessness.

The only law there ever really was was whatever you thought it was.

Be good.

 

Thu, 12/22/2011 - 01:37 | 2003533 Mo Bius
Mo Bius's picture

I keep showing you guys...:http://www.myspace.com/tom_heneghan_intel/blog

This guy has called it from the git.

Gettaclue.

Until we collectively decide to deprive Rockefeller and the Rothschilds of their lives we will have to put up with this.

And while you're at it, read about how the Mossad did Nine Eleven:http://www.opinion-maker.org/2011/01/british-intelligence-reports/#

Yes, Rockefellers are Zionists. Perhaps I don't have to tell you this about the Ratshitchilds.

Oh.yeah - read Alan Sabrosky, same topic:https://batzea.wordpress.com/2011/07/24/israels-hidden-faces-alan-sabros...

Or, view it: http://www.youtube.com/watch?v=bT5IVEQuzv8&feature=related

No justice - No peace.

 

 

Sun, 12/25/2011 - 20:16 | 2010815 q5251355
q5251355's picture

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