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MF Global Trustee Says Commingling Shortfall May Be Double Previous Estimate, Could Reach "$1.2 Billion Or More"
The day after MF Global filed, we calculated that contrary to widely accepted media expectations that the client theft at MF Global was limited to "only" $600 million, the true client loss (and thus, MF Global executive felony) was in fact up to $1.5 billion. Sure enough, three weeks in the Trustee has come to see things in a comparable light. From Reuters: "The trustee liquidating MF Global Holdings Ltd'sbroker-dealer unit said on Monday that the apparent "shortfall" of customer funds may be larger than the futures brokerage had reported prior to its bankruptcy. "The trustee believes that even if he recovers everything that is at U.S. depositories, the apparent shortfall in what MF Global management should have segregated at U.S. depositories may be as much as $1.2 billion or more," the trustee, James Giddens, said in a statement. He added that the amount could change. Giddens also said he expects in early December to transfer 60 percent of what is in segregated customer accounts for U.S. futures positions, pending court approval. He said the transfer would require $1.3 billion to $1.6 billion to implement, exhausting much of the assets under the trustee's control. MF Global was run by former Goldman Sachs & Co chief and New Jersey governor Jon Corzine before its Chapter 11 filing on Oct. 31. The filing came after the New York-based company revealed that it made a $6.3 billion bet on European sovereign debt. Corzine resigned on Nov. 4." In other news, major Chicago-based exchanges are fine (no seriously: they got some very sweet preferential terms in the account transfer... to the detriment of former MF Global accounts). And it goes without saying that Corzine has not even been questioned yet.
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very interesting thought. i figured it was just a yield grab to max return on cust seg funds...but that doesn't hold up given the magnitude and likely concentration of the holdings in piigs. so mf played the patsy and took the banks' loser sovgn debt holdings that the banks couldn't sell into the general mkt w/o triggering panic...interesting.
And... Those depositories are not going to know anything about where MF got the money to meet margin calls. MF Global customers, you just got straight robbed. You may get something back in 7 years after a class action lawyer eats 40%. Don't bother waiting.
And Jon Corzine still walks around as a free man, but swipe a sandwich from a 7/11 and your thrown in jail. Only in Amerika. Just decide to have a $30,000 a plate fund raiser for the President and you get your get out of jail card.
US is a sad country now. But it will end soon, under own weight of lies.
Since no-one else seemes to have done so:
Tyler,
Neat piece of research.
Well Done!
Watson
Celente rant on AJ should be real good today...
"Stolen" is such a harsh word. Corzine was just helping out our brothers in Greece and Spain. I half expect him to get a medal for his spirit of solidarity.
CME Gaurantee??
http://www.youtube.com/watch?v=m3XpfPXxjbw
MF- $2 -$3 BN stolen when the dust settles!
If you are well to do chap, would you keep your money in any US financial institution?
WE CAN LAUGH AT MFGLOBAL BUT WHEN THE ELECTRONS GETTED TURNED OFF AT OUR REGULAR BANKS(BAC CITI CHASE ETC)...WE WILL ALL BE SINGING THIS SAME SONG....!
better prepare...get your money out, buy gold or frying pans....or ammo!
"the 'known unknowable's', have made an oxymoron of 'trust and verify',... a borderline comical travesty, whereas the 'grey`eminence' tightrope-artist, performs his feats in virtual reality - a 'kafkaesque-situation' within a blinded avatar audience that applauds the grandeur of 'ingsoc' !"
a sad commentary for current events regarding mfg & corzine, and a caste-society prelude for a latter-day democracy ? jmo
thanks tyler
so TBTF sticks MF Global with bad bets on Euro clowns, siezes customer accounts and the crowd cheers because the story fits their political colors.
my how easily we forget that at a certain level politics evaporate.
Fear the Beard
Anybody else think that CME is a juicy short?
They've had almost a complete month and this is as far as they've gotten! Serously - time to hang the regulators, trustees along with Jon "POS" Corzine.
Cumminglingus..
LIBERTARIANS REJOICE!!!
infuriated over MF Global, crybaby rightwingers/libertarians shouldn`t be railing against the deregulated commodities trading industry (and the resulting THEFT and de facto BANK HOLIDAY) and the failure of PRIVATE OVERSEERS to REGULATE themselves.....they should be DANCING that corporate criminal `FREE MARKET`is determining their FATE!
you`re not being TREADED UPON.....yaaaaaaaaaaay!
the solution? MORE DEREGULATION. hahahaha.....
Troll
The reason this happened is not for of lack of regulation. There are plenty of regulations. The reason this happened was because of crony capitalism and fascism. Corzine being the head crony fascist in this case. He is thouroughly entrenched with the corrupt democratic power elite. This is a bit reminescent of Fannie and Freddie, and how they bilked the tax payers for billions doing much the same thing. Democratic operatives running those so called companies payed the democratic party big bucks to maintain their little fun and games and multi-million dollar bonuses. Hell they are still doing it. It is the responsibility of the executive branch to enforce the law, but with the Obama administration, we know how that goes. The system is corrupt to the core, so trying to make some sort of anti-libertarian argument is specious. It's like saying, "hey look what the crooks did, we better go give them more power so they don't do it again".
FASCISM is SOLELY A right wing "ideology" .... it isn't even an ideology.,...it is ORGANIZED IRRATIONALIS. sound like any teabagger rally you've been to lately? yeah , thought so.
FASCISM/libertarianism is also racist, xenopobic, paranoid and promotes social Darwinism. if you peabrains want to live in a factional warlord libertarian paradise, move to Somalia.
....the rest of us are trying to live in a MODERN DAY DEMOCRACY.
Jimmy Conway: Yeah.
Vinnie: Yeah.
Jimmy Conway: Who's this?
Vinnie: This is Vinnie.
Jimmy Conway: Vinnie, what happened?
Vinnie: Well we-...
Jimmy Conway: You get it straightened out?
Vinnie: No, we had a problem... and uh, we tried to do everything we could.
Jimmy Conway: What d'you mean?
Vinnie: Well, you what I mean. He's gone, and we couldn't do nothing about it.
Vinnie: That's it.
Jimmy Conway: What d'you mean? What d'you mean? Uh...
Vinnie: He's gone. Uh, he's gone.
Vinnie: And that's it.
No one broke the law. No one is going to prison. Read the fine print next time, bitchez!
Jon, is that you?
GC says CME Group is out of bullion, out of cash, and out of time, get ready for chaos.
The roosters that guard the henhouse are now stealing from each other. This is great, unless you had an account with MF Global, bummer for you for thinking your money is safely kept with the Wallstreet mafia.
Actually that's insult to the mafia, I'm positive they're way more honest than these cockroaches.
If I were a commodities trading firm, or fund manager, I'd be crapping pants right now, liquidating every position, and transferring money away from the brokerage, and into a (government approved, government backstopped) bank right now, just to test the system, and do an accounting. It's this kind of MF Global crap that starts viral withdrawls.
cyrus...you dumbass...the vision i sent told you prosecuting MF would be your career-maker case! MF! not I-MF..ah why do i bother. - the Big Guy
there is so wast legal fraud that i dont even care about this small fishes. Governments are more riskier vehicles and the leverages are without limit, you know politicians have no limits.
Jon gave up his 12 million dollar golden parachute, give the guy a break!
Sure, he already scammed much more than that, so may as well try to pull one over on the sheeple and look like the victim. Works almost every time.
I think Corzine should do what the last Democrat Govenor of New Jersey Sleezy McGreezy did when he got caught with his hands in the cookie jar ....I'm a gay American !
http://www.youtube.com/watch?v=W9RLSmuR57w&feature=player_embedded
Just for laughs
Typical of criminals... when they lie after getting caught, it's typically only 1/2 as bad as they let on.
I've been putting my money foolishly away in PM's for way over a decade. The rest of the investment world is crazy not me.
MF Global Explained:
http://www.youtube.com/watch?v=jLt05sN7vK0