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MF Global Client Theft Estimate Doubled To $1.5 Billion?
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?
And here is Reuters with a revised lowball. Remember this number was supposed to be zero earlier today.
MF Global had a $633 million
shortfall in its customer segregated funds as of Nov. 1, according to an
estimate the CME Group provided to the U.S. futures regulator.
That amounted to an 11.6 percent deficiency.
In the letter dated Nov. 2, the Commodity Futures Trading Commission
said the CME has identified futures commission merchants (FCMs) willing
to accept transfer of MF Global customer segregated account positions of
retail and institutional customers.
The futures regulator also
said that CME anticipates that MF Global customer segregated account
positions will be transferred to two or more of five identified clearing
members.
MF Global, which filed for bankruptcy protection on
Monday, is the biggest U.S. casualty of Europe's debt crisis, and the
seventh-largest bankruptcy by assets in U.S. history.
When all is said and done, the shortfall will be well over a billion.
h/t Doug
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"This is outright theft resulting from illegally commingled accounts."...
and so the beat goes on,....the beat goes on!
EVERY MF employee aware that funds were being commingled -- and didn't tip off the regulators -- is a COWARDLY CRIMINAL - EVERY DAMN ONE!!
Doesn't matter if they weren't a manager or exec - they are all registered reps and they all know better. Fucking COWARDLY SCUM !!
If nobody went to jail over the mortgage CDO crap a few years back, not likely here unfortunately.
10....As of the end of the day on November 1, 2011, no
potential transferees had agreed to participate in this relatively small population of customer
commodity positions. The Trustee has endeavored and will continue to endeavor to work with
the interested parties to find transferees for all commodity customer positions, but some such
positions may remain untransferred, and may have to be liquidated.
11. The Trustee has determined that the Account Transfers will contribute to the prompt satisfaction of customer claims and the orderly liquidation of MFGI. Without effecting these transfers, the positions are required to be liquidated promptly and in an orderly manner. As set forth more fully below, the customers’ positions are required by Part 190 Regulations to be liquidated if they are not transferred to a transferee FCM before the close of business on Friday, November 4, 2011 (the fourth business day after the entry of the MFGI Liquidation Order). The liquidation of these customer commodity positions in all likelihood will negatively effect the net value to the customers and the markets in general.
So, Friday is a mass liquation day??? And the CFTC has no issue with this? I can see the lawsuits now from old Granny who didn't know anything about this.
Short grains - again?
Don't Liquidate me Bro !
speaking of illegally comingled accounts
I think this is a test run of the coming BOA
defraudation magnifique.
I love how that final bulkhead of economic justice, the FDIC,
quietly acquiesed with a 'we don't really like this but ok'.
"defraudation magnifique" Brilliant!!!
In the scheme of things, is this broken leg bad, or broken neck bad?
http://www.sec.gov/whistleblower
THAT'S how damn hard it is !!
Is this something like Obama's "fast and furious" program ?
Looking at news sites, it appears that Herman Cain is some sort of serial harasser, allegedly, but I see little or nothing about MF Global. I guess that shouldn't surprise me..........
And apparently some reality tv troll's $17m marriage to a pro athlete only lasted 70+ days.
The important topics, covered with pride by the MSM.
Hey WESTERN....
YOU ARE NOW ON A SURVIELANCE LIST.....
Oh well.
Don't kid yourself, we all are.
According to Reuters, President Obama WILL return the INDIVIDUAL donation that Corzine made if he is charged with a civil or criminal offense. That amountis around $35k
A campaign official, speaking on condition of anonymity, said Obama's campaign
would return the donations from Corzine as an individual if civil or criminal
charges are brought against him.
Of course the campaign WILL NOT return the over $500K Corzine has raised or "bundled" to date for Obama's
2012 re-election effort.
That boys and girls is the "quid pro quo" lesson of the day.
http://www.reuters.com/article/2011/11/02/us-mfglobal-fundraising-idUSTRE7A176O20111102
Blasphemous Truth No exlamation point.
Tell jimmy Cramer to quit garging on marbles<
As soon as a central bank stops printing the truth of the matter is revealed.
here is a primary dealer,
part of a criminal bankster cabal,
and, as it turns out, clients went with the "trust me" and assumed there would be no counterparty risk in hedging their high fructose corn syrup and bacon
did danny ocean hit the wrong casino?
who could have known or even imagined that the accountants, directors, executives and regualtors would all fail? again?
fiduciary = four-letter word
central banksters and NWO socialists just don't like taking actual responsibility for anything!!!
be careful in those "brokerage" casinos. if they can't get your bankroll fair & square, then by hook or by by crook will just hafta suffice
i'm sorry that "innocent" people get hurt in casinos, but if this is news to you, you should be locked up for your own protection
the game is rigged. when they set up a 50% "private & voluntary haircut" on greek debt and simultaneously said "no credit event", we tried to tell you they were smoking some killer shit
Obammy gonna arrange a car trip for Corzine. No seat belt required
Did anyone catch MF's add in Barron's this Sunday? It says: "Everyone has opinions. We have convictions." Yeah, they are going to have convictions, at least they should.
If you take a drill to a safety deposit box, it is theft.
If you rob someones account, it is theft, at least I thought it was.
"co mingled" just implies it didn't leave the building.
How do they know that?
So, what does a hit on someone cost these days? I can't imagine it amounts to jack shit, compared to 1.5 billion.
what is the signifigance of this number?
2.47 kilometres.
Get a bad feeling the FBI is keeping a close watch on this thread.
I haven't lost a dime in this. I know the game and refuse to play it. But when stealing this much from this many, someone is going to get really, really pissed.
i was trying to figure out why last week i read corzine was a bundler for Obama of over $500,000 so far.......corzine backed hillary, probably expecting to become treaurer......when obama blew those plans up, corzine hitched up to the obama bandwagon, only to be blown off numerous times by obama and when he came to NJ it was honestly his worst performance ever , at the time i thought it was on purpose.......fast forward to cozine getting beat by chrsitie and i couldnt understand why corzine would be raising money for obama................NOW I KNOW WHY !!!!!!!!!!!
who would you rather have your daughter go to prom with timmy 'the franz' flys around in military jets federal reserve bank of new york geithner or the new bad boy on the block joey corzine the treasury secretary that wasnt, goldman governor and theif executive officer of Motheerfuckin global bitch??
If those are her choices, I pray she becomes a lesbian and takes Rosie O'Donnel to her prom. At least that screwing is something I could live with.
I knew they where playing a game, when this first came out on Sunday/Monday they where saying at least a Billion and later as the day wore on they where making commen of less than a Billion and now this amount. There is no way around this, Corzine is perp walking I can't see it not happening.
@ Pin
Your story is making me want to Occupy. What motherfuckers. We should all start demanding RICO prosecutions on these people.
This is clearly just a case of overly aggressive resume padding.
Tax cheat Geithner got himself named Secretary of Treasury, which includes being boss of the IRS. Corzine, by possibly and seemingly absconding with a billion five, is now eminently qualified---at least according to the illogic of the Axelrod of Evil known as POTUS---to head both the Justice Department and the Just Ass Department, aka the porn-surfing SEC. Toss in either FINRA or the CFTC and we’ve got sort of a reverse Unholy Trinity. Such is the skill level and qualifications of the co-Mother of All Vampire Squid.
And for the conspiracy buffs, shave off the hair and the beard, and is it not possible that the once co-Chairs of Goldman Sachs, Hank Paulson and Jon Corzine, are really one in the same?
"And for the conspiracy buffs, shave off the hair, beard and scales, and is it not possible that the once co-Chairs of Goldman Sachs, Hank Paulson and Jon Corzine, are really one in the same?"
lol...fixed it chin.
Now that you mention it, I don't recall ever seeing them in the same press conference. And even if they were, who's to say if it was real or CGI?
(And another conspiracy is born... but I like it too.)
MF Global crashes , fraud , steals ....Geez are you sure it wasn't an Italian ? Corzine must be Italian ,or mates with Berlusconi. With all the anti Italian rhetoric I am surprised you didn't blame Italy for this too.
The Talmudic authority which holds that Gentile property is like unclaimed land in the desert is the Talmud Book of Baba Bathra, Folio 54b, there cited. The passage actually appears on page 222 of the Soncino edition: "Rab Judah said in the name of Samuel: The property of a heathen is on the same footing as desert land; whoever first occupies it acquires ownership."
This is my first post here. I've been loving this website!
So let's see if I've got this MF fiasco straight. I'll collapse the event sequence for simplicity:
1. MF makes big bets on European debt.
2. The money disappears.
Am I misguided, or is the EU situation not just a continuation of the Major Tankola that didn't happen in 2008? Am I further misguided to think TPTB, including all and ex GS types, don't know that the Major Tankola continues? Surely that's what Dalio nervously told Rose (ie, told any interested to hear what he was saying). 2 looks rather more by design to me.
Send Conzine to jail for 1.5 billion years.
Can't we just all trust politicians to run things?
Ce n'est pas le WILD WEST ... ?!?!?!
C'est le WILD WEST.
The place needs a new Marshal.
Unfortunately only an ideologue or a nut job would fit the bill, otherwise they will be bought off.
Now that's cynicism for you at 6:30am ...
Like Raj, shouldn't Corzine have early morning visitors and escorts equipt with handcuffs? Where are the $100m bail bonds for Corzine and his buddies at MFGlobal? Or, is it justice for some and not for the politically connected? The buddy system protected Bernie Madoff for a long time. How long are we going to protect Corzine and the management of MFGlobal? Refco, Man Group you get the drift.
Where IS Jon Corzine?
MF Global Explained:
http://www.youtube.com/watch?v=jLt05sN7vK0