This page has been archived and commenting is disabled.

Must Read: Presenting The MF Global Black Box: A Minute By Minute Breakdown Of The Doomed Broker's Last Week On Earth

Tyler Durden's picture




 

In order to get to the bottom of every collapse (or death), a forensic analysis of the last minutes of any transition from life to death has to be perormed. So far, we have only had broad strokes of the key events in the last days of MF Global as obviously many of them will implicate the management team in gross criminal behavior. Until now, when courtesy of the CME we have received a full breakdown of every key events in the chronology of MF Global's last days on earth, starting with October 24, and the rating agency downgrade of the futures broker (the same catalyst incidentally that started the AIG death spiral waterfall... and yet clueless pundits will tell you the ratings are totally irrelevant), and ending with the firm's filing for bankruptcy protection. Anyone who has any interest in the MF Global collapse, which incidentally should be anyone who has capital in third party possession and thus has counterparty risk, should read this narrative from first to last bullet.

October 24, 2011

  • Mike Procajlo ("Procajlo") speaks with Mike Bolan ("Bolan"), MF Global, Inc.'s ("MFGI") Assistant Controller. Bolan gives Procajlo a heads-up that a downgrade is forthcoming and that the earnings call for MF Global Holdings, Ltd. ("MFGH"), scheduled for Thursday, which is expected to report losses, is being moved up to Tuesday.
  • Moody's downgrades MFGH and MFGI.

October 25, 2011

  • Procajlo speaks with Bolan via phone; Bolan confirms there has not been a customer run on the bank since the downgrade news.
  • CME senior management, including Kim Taylor ("Taylor"), Terry Duffy ("Duffy"), and Craig Donohue ("Donohue") are in Florida at the Global Financial Leadership Conference.
  • Taylor is advised by an MFGI customer of rumors circulating about problems at MF Global ("MFG" with respect to information not given as specific to a particular entity) stemming from OTC activity.
  • 11 a.m.: Taylor speaks with Laurie Ferber ("Ferber"), the General Counsel of MFGH, and Steve Monieson, another MFG employee, who tell Taylor that the rumor about problems at MFG stemming from OTC activity is not accurate. Procajlo speaks with Bolan about OTC questions.
  • 11 a.m.: Taylor, Donohue, and Duffy seek and obtain Jon Corzine's phone number. They do not recall speaking with Corzine.
  • 11:54 a.m.: Procajlo emails Grace Vogel at FINRA to see if FINRA has any additional concerns or is imposing any additional requirements in light of the downgrade news.
  • 1:30 p.m.: Taylor speaks with Ferber again, who informs Taylor that MFG does not have any large losses attributable to OTC activity.
  • 2 p.m.: CME Audit Department members, including Procajlo and Anne Bagan ("Bagan"), as well as CME Risk Department members, including Dale Michaels ("Michaels"), Amy McCormick ("McCormick") and Bryan McBlaine ("McBlaine"), speak with Bolan about MFGH's earnings release and Moody's downgrade. MFGH's net losses reported were $192M. The CME employees ask about MFGH's liquidity resources. Bolan confirms that any further downgrades will only trigger covenants related to interest rates. Bolan also confirms the firm is well-capitalized and states that MFGI has not seen customers looking to transfer.
  • 7 p.m.: At this point, CME is taking the following steps to monitor the situation:
    • (1) keeping MFGI on daily financial reporting;
    • (2) monitoring MFGI's positions, exposure, and customer transfer/segregated funds balance changes for signs of a significant loss of customer confidence;
    • (3) drafting a "good standing" press release to have ready if necessary;
    • (4) establishing a process to ensure customers looking for information get answers to their questions;
    •  (5) establishing an industry call process to ensure information flows to other affected clearing houses and regulators; and
    • (6)  considering whether other financial measures are in order, in coordination with other regulatory bodies.

October 26, 2011

  • 4 p.m.: CME arranges an industry call regarding the MFG situation.   
  • 6 p.m.: Taylor, Bagan, Tim Doar ("Doar") and possibly other CME personnel participate in a conference call with Ferber and Henri Steenkamp ("Steenkamp"), the CFO of MFGH. Ferber and Steenkamp give Taylor and Doar the sense that MFGI is actively engaged in conversations with their customers in an attempt to preserve the business.
  • 7:45 p.m.: Taylor emails Ferber regarding CME helping "to ensure a good outcome for MF and your customers. You and your clients are important to us, and the clients' continued protection is paramount."

October 27, 2011

  • MFGI and MFGH are downgraded to junk this day.
    Members of CME's Risk Department — Michaels and Suzanne Sprague ("Sprague") — as well as Scott Malcolm ("Malcolm") from CME's Audit Department — meet with MFGI in New York (planned earlier in the week) to do a risk review, the purpose of which is to talk with the firm about their liquidity and assess the situation. At the time, CME is starting to have concerns that MFGI's liquidity is drying up.
    Michaels, Sprague, and Malcolm meet with a number of individuals from MFGI, including Stephen Hood ("Hood"), MFGI's Market Risk Manager, Dennis Klejna, MFGI's Compliance Officer, the CRO Michael Stockman, and the CFO (Steenkamp). Edith O'Brien ("O'Brien"), MFGI's treasurer, may have been on the phone.
  • At the conclusion of the meeting, CME- continued to have concerns regarding MFGI's liquidity and the ability of the company to continue normal operations without a sale of all or part of the business, notwithstanding MFGI's assurances.
  • 10 a.m.: Procajlo emails Bolan, who is at MFGI in New York, for a copy of the liquidity analysis being prepared by MFGI's broker-dealer side. Bolan responds saying the analysis will be ready later that day. Procajlo never receives the analysis.
  • 1 p.m.: CME decides to send members of the Audit Department out to MFGI in Chicago. Silmar Ramirez ("Ramirez") and Jason Guch ("Guch") arrive at MFGI and request documents to tie out the Daily Statement of Segregation Requirement and Funds in Segregation for Customers Trading on U.S. Commodity Exchanges ("seg. statement") for the close of business as of 10/26. They start working on tying out the 10/26 seg. statement, which shows excess segregated funds of $116,164,132.

    In addition to tying out the 10/26 seg. statement, another purpose of their presence is to have CME people at MFGI to assist in obtaining information quickly if necessary.

    The CFTC — Melissa Hendrickson ("Hendrickson"), Lisa Marlow ("Marlow"), and Tamara Durvin (phonetic) ("Durvin") — is already present on site at MFGI when CME arrives.

    CME begins making contingency plans for transferring MFG customer accounts to other FCMs.

  • 2 p.m.: Individuals from MFGH and CME communicate via email to set up a conference call to discuss a number of items including: (1) MFGI's liquidity; (2) repo counterparties update; (3) any issues with transfers of customers to other FCMs; (4) margin calls resulting from downgrades; (5) amount of segregated assets not currently pledged to a DCO; (6) contingency plans.
  • 2:50 pm: Taylor communicates with Ananda Radhalcrishnan ("Radhakrishnan"), Director, Division of Clearing and Risk, at the CFTC regarding an FCM that has the capacity to take on some portion of MF Global's business. CME President Phupinder Gill ("Gill") also communicates with Radhakrishnan via email throughout the day.
  • 3:53 pm: Procaljo emails a letter to Christine Serwinski ("Serwinski"), the CFO of MFGI, Ferber and Bolan stating "Effective immediately, any equity withdrawals from MF Global Inc. must be approved in writing by CME Group's Audit Department."
  • 4 p.m.: CME arranges an industry call regarding the MF Global situation.
  • 5:30 p.m.: Ramirez and Guch leave MFGI for the night, having completed work on documents and information supplied by MFGI as of that time.

    Evening: Procajlo, Taylor, Doar, Gill and others participate in a call with Ferber and Steenkamp, who are in New York. Ferber and Steenkamp provide assurances that MFGI has appropriate liquidity and also that MFGI is taking steps to reduce its securities inventory (not on the FCM side).

    Additionally, CME encourages MFG to pursue a strategic solution for the company. Ferber provides comfort that MFG is aggressively pursuing a transaction.

October 28, 2011

  • 7:30 a.m.: Ramirez and Guch arrive at MFGI and continue trying to tie out the 10/26 seg. statement. They still have not received all of the documents they requested from MFGI and that they need to complete their tie out. They are also working on tying out the Daily Statement of Secured Amounts and Funds Held in Separate Accounts for Foreign Futures and Foreign Options Customers Pursuant to Commission Regulation 30.7 ("secured statement"). CME and CFTC are in communication throughout the day about MFGI's 30.7 secured computations and MFGI topping up the 30.7 secured assets.   

    The CFTC — Hendrickson, Marlow, and Durvin — is again present on site at MFGI in Chicago and appears to also be working on tying out MFGI's seg. statement.

    Morning: Duffy receives a call from Radhakrishnan and Gensler. Radhalcrishnan and Gensler tell Duffy that the CFTC has concerns about MFG and ask him about CME's thoughts with respect to MFG. Duffy tells them that he does not have the information they seek, and suggests they speak with CME Clearing House personnel. Radhakrishnan speaks with Gill later that day.

    Procajlo and senior management at CME have another call with MFGH, including Steenkamp and Ferber, who assure CME that they have drawn down all or substantially all of their line of credit — which has a limit of approximately $1.2 billion — but are not yet using the money.

    They confirm that MFGH believes finding a buyer is the best option at this point.

  • 3:54 p.m.: MFGI submits its 10/27 seg. statement showing excess segregated funds of $200,178,912.
  • 4 p.m.: CME arranges an industry call regarding the MF Global situation.
  • 6 p.m.: Ramirez and Guch leave MFGI, expecting to come back Monday and finish tying out the 10/26 seg. statement. At this time, Ramirez and Guch do not yet have all of the documents necessary to tie out the 10/26 seg. statement. Based on their review of the documents they have received, they have no reason to believe that the segregated account is out of compliance as of 10/26 close of business.
  • 8:25 p.m.: Taylor emails Radhakrishnan at the CFTC to relay information she received from Ferber. MFGI has a "very motivated buyer" and needs to obtain approvals from the SEC, F1NRA, and CFTC.

October 29, 2011

  • Procajlo is in communication with Hendrickson of the CFTC via phone about a potential sale of MFGI's FCM business.
  • 2:30 p.m.: Taylor speaks with Radhakrishnan regarding a potential asset sale of MFGI's assets. The CFTC is concerned with a transfer because of the CFTC's rules on bulk transfers, though note that they will waive the rule if an asset sale works out.
  • 3:40 p.m.: Taylor forwards to Radhalcrishnan a Bloomberg News report stating that MFGH's Board of Directors will be meeting later that day regarding options to sell the company.
  • 4:30 p.m.: Taylor speaks with Radhakrishnan, who states that the SEC told him the FSA in the UK may be starting to panic. Radhakrishnan says he is going to call the FSA to share insights into his thinking and learn FSA's thinking. Taylor and Radhakrishnan also discuss additional details regarding a potential sale.
  • 7:50 p.m.: Radhakrishnan forwards to Taylor an email chain between Ferber and Radhakrishnan regarding a meeting of MFGH's Board.
  • 11 p.m.: Interactive Brokers ("IB") is the leading candidate, looking to buy either the entire business, or possibly just the FCM.

October 30, 2011

  • 8:30 a.m.: Taylor speaks with Paul Brody ("Brody") at IB regarding details of the potential transaction.
  • 8:45 a.m.: CME is making contingency plans in case the proposed sale falls through.
  • 12:30 p.m.: Taylor receives email correspondence from Radhakrishnan indicating that the CFTC is concerned about having a  contingency plan for MFGI if the IB deal falls though.
  • 1 p.m.: Conference call between CME and IB regarding operations issues in the event the sale is completed.
  • Approx. 1 p.m. - 2 p.m..: Taylor participates in a conference call with the CFTC, SEC, and MF Global.
  • Approx. 2 p.m.: Taylor, Procajlo and others arrive at CME offices to work on matters that need to be addressed to facilitate the MFGI transaction.
  • Approx. 2 p.m.: Hendrickson, who is present at MFGI in Chicago, calls Procajlo and tells him that she has seen a draft of the 10/28 seg. statement and it shows a deficiency in the segregated funds.
  • After 2 p.m.: Ramirez and Guch are sent to MFGI's Chicago office. Malcolm is sent to MFGrs New York office.
  • 4 p.m.: CME arranges an industry call regarding the MFG situation.
  • 4:18 p.m.: Bolan responds to an email from Procajlo, in which Procajlo had indicated that Malcolm is on his way to MFGI's office in New York, by stating that MFGI has been working with Hendrickson at the CFTC and that he will update Procajlo later.

    Late afternoon or evening: Taylor briefs the CME Emergency Financial Committee concerning MFGI's status. The CME Emergency Financial Committee is composed of Donohue, Duffy, Taylor, Gill, and CME Clearing House Risk Committee Co-Chairs James Oliff and Howard Siegel.

    6 p.m.: MFGI forwards to CME a draft press release announcing deal with IB.

  • Approx. 6 p.m. and into the evening: Procajlo and Taylor engage in a series of phone calls with Ferber, Bolan and/or O'Brien.  Initially, Ferber and Bolan explain that there is an apparent deficiency, which they believe is an accounting error. At some point, MFG representatives state that they believe they found the error and it is on the liability side.

    Procajlo calls Ramirez and Ouch, who are at MFGI's offices in Chicago, to confirm that the accounting error has been identified.  Ramirez and Ouch inform Procajlo that MFGI has not found the error.

    Procajlo asks Bolan to explain what the error is in an in-person meeting with Malcolm (CME) and Jerry Nudge (CFTC), who are in MFGI's New York office.

  • 30 minutes or so later, Malcolm calls Procajlo and tells him that Bolan says the accounting error is based on a $450M mis-posting. The error Bolan described to Malcolm is not on the liability side.

    Procajlo again calls Ramirez and Guch to confirm that the accounting error has been identified. Ramirez and Guch again inform Procajlo that they are with MFGI individuals working on the reconciliation, and they are not aware of anyone having found the error.

    Taylor and others at CME have calls with O'Brien regarding the potential error.

  • Approx. 6 p.m. - 7 p.m.: O'Brien, MFGI's treasurer, calls a meeting with the CFTC, CME, and MFGI employees present at MFGI's Chicago office and confirms that MFGI has a potentially huge deficiency in the segregated account due to what MFGI states is an unidentified accounting mistake, such as a mis-booking.

    Later that evening, while at MFGI, CFTC's Marlow gives Guch and Ramirez a disc containing documents the CFTC received from MFGI supporting the 10/26 seg. statement. At this time, however, Ramirez and Guch are assisting with trying to locate the accounting error and therefore do not look at the documents to tie out the rest of the 10/26 seg. statement at this time.

  • 8:30 p.m.: Radhakrishnan talks to Gill.
  • 8:40 p.m.: Procajlo sends an email to Bagan and Debbie Kokal ("Kokal") stating that MFGI's "explanation of the $900 million  shortfall proved to be unsubstantiated."
  • 8 p.m. - 9 p.m.: Procajlo arrives at MFGI. He speaks to CFTC's Hendrickson and gets a status update.
  • Christine Serwinski arrives at MFGI.
  • 9 p.m. - 10 p.m.: Procajlo speaks with Serwinski and O'Brien, who repeat the explanation that the deficiency must be an accounting error and make statements to the effect that it is too big to be anything else.
  • 10 p.m.: Procajlo meets with Serwinski and O'Brien again and asks if MFGI has tried to locate funds MFGI can transfer into segregation first thing in the morning as a contingency in the event that they cannot locate the accounting error.
  • 10:50 p.m.: CME requests via email that "MF not add any further exposure to your house account." CME does not request MFGI to "liquidate the positions that you have in place, but that you not add to them at this point."
  • 11:30 p.m.: The CFTC leaves MFGI's Chicago offices.
  • 11:40 p.m.: Procajlo emails Bagan and Kokal, stating that he is now at MFGI's offices and the shortfall, of approximately $950 million in segregation, is still a "huge issue." No one has found the error, but the belief is still that there is an error. Serwinski is looking into coming up with additional funds to transfer into segregation as a contingency in the event that they cannot locate the accounting error.
  • Procajlo also states that he understands IB is now aware of the potential shortfall.

October 31, 2011

  • 12 a.m.: Ferber emails Taylor, stating only: "we may have it."
  • Approx. 12:30 a.m.: At this time: (1) The IB deal is ready to go — apparently including regulatory signoffs; (2) there is still a $900M apparent segregation shortfall and MFGI says it is an accounting error; (3) the transfer cannot happen until it is clear there is no segregation shortfall; (4) MFGI is starting to identify sources of funds available to top up segregation — and the latest report from MFGI is that they may have sufficient funds; (5) IB and MFGI have spoken to CME and both seem aligned on the importance of the transfer occurring promptly, and state they are open to the suggestion of having MFGI top up segregation and TB making corresponding adjustments to the deal economics.
  • Approx. 1 a.m. —2 a.m.: CME learns the deficiency is real: Serwinski and O'Brien call Procajlo into Serwinski's office and tell him there is an actual shortfall; about $700M was moved to the broker-dealer side of the business to meet liquidity issues in a series of transactions on Thursday, Friday, and possibly Wednesday. Additionally, Procajlo is told there was a loan of $175M of segregated funds to MF UK.
  • CME stops its efforts to look for the accounting error. CME understands that MFGI is attempting to find available funds and get Fedwire to open early so they can start transferring money into the segregated account.
  • 2 a.m.: Taylor emails the FSA and CFTC to let them know that IB has gone home to get some sleep, but may still be interested in the transaction.
  • 2 a.m.: Procajlo communicates via email with Thelma Diaz from the CFTC Washington D.C. office, who is on a regulatory call at the time, and discusses whether Fedwire can open early so MFGI can start transferring funds into segregation.
  • 3 a.m.: Ramirez and Guch leave MFGI for the night. Procajlo stays until 8 p.m. the following day.

    During the night, Procaljo also participated in a phone call with senior MFG employees wherein one employee indicated that Corzine knew about loans that had been made from the customer segregated accounts. CME Group has provided information about this call and related conversations, and the names of the individuals who participated, to the Department of Justice and the CFTC who are investigating these matters.

  • 4 a.m.: Taylor and Gill participate in a call with MF Global and the regulators.
  • 4:37 a.m.: Procajlo emails others at CME with a list of potential assets MFGI has identified that it could move into segregation.
  • The deal with IB to buy MFGI collapses.
  • 6:45 a.m.: Taylor emails CME senior management to inform them that the deal has collapsed, the shortfall is real, and there will likely be a bankruptcy.
  • 7:30 a.m.: Procajlo, Ramirez and Guch are on site at MFGI while MFGI attempts to make transfers of funds back into segregation. The CFTC is also present.
  • 8:30 a.m.: Taylor and Radhalcrishnan communicate via email regarding MFGI bulk transfers.
  • 9 a.m.: MFGH files for bankruptcy.
  • 10 a.m.: Taylor and Radhakrishnan communicate via email regarding the amount of shortfall.
  • 10:30 a.m.: CME's Emergency Financial Committee orders that all trading of MFGI and its customers be for liquidation only. Taylor's assistant emails a letter from Taylor to Dennis Klejna ("Klejna"), Assistant General Counsel of MFGI, stating the Committee's order. The letter further states that CME will no longer permit floor trading to be guaranteed by MF Global, and that CME will process account transfers at the Friday settlement price but that customers will need to re-margin transferred positions.

    Moody's further downgrades MFGI.

    S&P and Fitch downgrade MFGH to default following MFGH's filing for bankruptcy protection.

  • 11 a.m.: A SEPA proceeding is filed for the liquidation of MFGI and a SIPC Trustee is appointed.
  • 12:15 p.m.: CME's Emergency Financial Committee orders that MFGI liquidate its house proprietary positions. Taylor's assistant  subsequently emails a letter to this effect to Klejna and Serwinski. The Committee also authorizes CME to liquidate securities held as house and customer collateral under the control of the Clearing House to cash.

    Throughout the day, Ramirez and CME staff— Guch, Jared Jarvis ("Jarvis"), Procajlo, and Mudassir Arby ("Arby") — attempt to tie out the 10/28 seg. statement.

  • 7 p.m.: CME's Emergency Financial Committee approves a rule change releasing members qualified by MFGI, such that those members could become qualified and guaranteed by another clearing member in order to resume trading.
  • 7:46 p.m.: CME receives the amended MFGI seg. statement for 10/27 showing a segregation deficiency of $213,062,967.
  • 7:55 p.m.: CME's Emergency Financial Committee (i) authorizes the Clearing House to conduct an auction of MFGI's house positions in order to transfer the positions to another clearing member, and (ii) authorizes the Clearing House to accept certain deliveries from MFGI customers through Friday November 4 in order to minimize disruption to the markets.
  • 8 p.m.: CME notifies MFGI that it is suspended as a clearing member on all CME Group exchanges. Taylor's assistant subsequently emails a letter from Taylor to Klejna and Serwinski confirming the suspension.
  • 8:06 p.m.: CME receives MFGI's seg. statement for 10/28 showing a segregation deficiency of $891,465,650.

Source: CME

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 12/15/2011 - 19:33 | 1985446 Benjamin Glutton
Benjamin Glutton's picture

sold 1.3 Billion in Commercial Paper through JPM but JPM kept the funds according to todays testimony by Corzine.

 

 

JPMugger bitchez!

Thu, 12/15/2011 - 19:35 | 1985454 Tyler Durden
Tyler Durden's picture

Read this to understand why JPMorgan, due to being one of only two tri-party repo clearers, effectively can do anything it wants in the capital markets:

A Rare Glimpse Into The Fed's Discount Window Courtesy Of The Brewing Lehman-Barclays Scandal

And then read this:

Tri-Party Repo Infrastructure Reform

...And then everything will start falling into place.

Thu, 12/15/2011 - 19:37 | 1985461 trav7777
trav7777's picture

they need to go to the bottom of the ocean

Thu, 12/15/2011 - 19:44 | 1985487 spiral_eyes
spiral_eyes's picture

I really wish more people would explicitly call them Motherfucking Global. It would nicely reflect the contempt and disgust we all feel for that snivelling reptile Corzine.

Thu, 12/15/2011 - 19:52 | 1985502 redpill
redpill's picture

If these morons had been just a bit more forward-looking when they got intially downgraded and insured they had a massive surplus in segregated funds, the IB deal would have gone through.  But it's sad they even got to that point.

 

A company that had weathered the torrid winds of the financial world since 1783, only to be brought down in less than a week thanks to beligerent bets and gluttonous leverage.  The arrogance and myopia is simply staggering.

Thu, 12/15/2011 - 19:55 | 1985522 Canaduh
Canaduh's picture

How interesting to see a firm sacrificed on Samhain.

Thu, 12/15/2011 - 20:05 | 1985570 youLilQuantFuker
youLilQuantFuker's picture

Wait. Can someone break this all down with Tweet like precision cuz I'm missing it.

Let's call it a ZHweet. It will help the ZH handicap or otherwise intoxicated community.

Thu, 12/15/2011 - 20:14 | 1985588 redpill
redpill's picture

 

- Corzine insists on making huge investments in risky Euro bonds, meanwhile his company is carrying 37x leverage and is losing money.

- Company gets downgraded due to the above circumstances

- Margin calls ensue after MF Global is downgraded to junk

- They run out of money and start using segregated client funds to cover their shortfalls elsewhere in desperate hopes that they get bought by Interactive Brokers

- IB hears about the shortfall in segregated funds and gets out of dodge

- Bankruptcy

- Some poor CME bastard named Mike Procajlo stays up for about 3 days (soldier!)  trying to figure out what the fuck is going only to realise it's a lost cause

- Where's the money Corzinowski?

 

Thu, 12/15/2011 - 20:19 | 1985605 WestVillageIdiot
WestVillageIdiot's picture

Thank you for the synopsis.  I know somebody whose uncle had money with MF.  I am trying to find out where he stands with his attempts to get his cash back.  The guy I know says his uncle is a douche bag so i don't really feel bad for the guy.  I'm just curious to know how many of these people will not see the return of their funds.

Don't forget what old Will said.  "It is not the return on my money that makes me nervous.  It is the return of my money that makes me nervous."  I am as guilty as anybody at chasing return.  I think I have finally broken myself of that habit.  I find I care about this stuff a lot less when I am not fighting for an extra nickel but losing a dollar.  Bury it in the backyard and sleep well. 

Thu, 12/15/2011 - 21:08 | 1985704 Cheesy Bastard
Cheesy Bastard's picture

Don't worry, the nickel will be worth more than the dollar soon.

Fri, 12/16/2011 - 00:29 | 1986026 alchemystic
alchemystic's picture

Already is, I checked the other day, $100 face value presidential dollars valued at about $5.95, $100 face value nickels valued close to $100, but hey, copper right now is a little down

Fri, 12/16/2011 - 02:02 | 1986136 Harlequin001
Harlequin001's picture

Aw c'mon, I mean anyone can make a $900,000,000.00 accounting error.

Happens all the time...

Some you win, and some you lose...

That's what 'suspense' is for, to be left hanging by the neck until dead.

Fri, 12/16/2011 - 04:30 | 1986229 TruthInSunshine
TruthInSunshine's picture

I'm late to this party, but I see that Zero Hedge has yet again broken a hard news financial story-scandal that the Lame Ass Main Stream Media apparently is too incompetent and/or corrupt (I know that the latter is where my bet is on, given the octopus tentacles of all MSM proxy channels being owned by no more than 8 - how ironic- corporations) to do so itself (just like with the niceHFTfrontunning&tick-splitting-collocater-servers you have there story that 60 Minutes just barely scratched upon 2 years after ZH broke it open).

When Jamie BloodDiamond as custodian of JP Morgan & Lloyd BlankCheckThief as custodian of Goldman Sachs were asked why they imbedded their tentacles in the Fractional Reserve Federal Reserve as a means of robbing taxpayers & just about anyone they damn well chose to, they responded:

"Because that's where the money is."

If you or someone you know lost money and are now in the dark as to what happens, I can guarandamntee you that The Bernank, lauded scholar of the Great Depression and prestigious Federal Reserve Chairman, knows a boatload about how MF Global WAS imploded, given its status as a Primary Dealer, which allowed it special privileges vis-a-vis its Overlord, The Federal Reserve 'Bank' (and especially the New York Fed Branch, ex-stomping grounds of one Timothy Franz Geithner).

 

Here's a guest post article ZH ran two weeks or so ago (Pollock: So that's why you're calling Jon Corzine a chicken on CNN? Koutoulas: Yes, where's the money, Jon?), where I commented on what I knew then, regarding legal procedure that would have been appropriate pending even the remote possibility of commingling or draining/wasting of client accounts at MF Global, which, as it turns out, is moot, since all of the shenanigans (hundreds of millions of shenanigans) were done while the incompetent and/or corrupt regulators were literally all hands on deck, prior to MF Global's filing for bankruptcy:

http://www.zerohedge.com/contributed/pollock-so-thats-why-youre-calling-...

I am perplexed.

In a case like this, the first thing the attorney(s) for the clients having accounts at MF Global should have done is file an emergency motion for a temporary restraining order to prevent MF Global from accessing, utilizing, removing, moving, transferring or in any other manner disturbing those accounts as they stood as of the second of the filing of the bankruptcy petition of MF Global, and a motion to show cause as to why they haven't provided details of where such monies are now residing (which entity and geographic location), who has and has had access to such accounts/monies since (and prior to) the filing of the bankruptcy petition of MF Global, along with a corollary motion to compel the MF Global bankruptcy trustee to provide a detailed accounting of information relating to these accounts (as already stated above).

No sane judge would deny this clearly necessary relief given the very real dangers of waste, commingling, assertion of priority over cash and non-cash assets (including chattel) of the now bankrupt MF Global.

If this is a matter of creditors standing in line and fighting over priority, even if one assumes that any creditor of MF Global takes precedent over retail account holders, the above listed motions could all be granted, and the TRO could also be issued, as well, while things get sorted out, irrespective of insurance issues, such as Securities Investor Protection Corporation (SPI), etc.

Orders consistent with these motions would merely ensure that the status quo ante is maintained while the proceedings regarding MF Global's bankruptcy are sorted out (aka mitigate against improprieties and risk of wasting of monies held in retail accounts), as these risks lead to irreparable harm to those owed money or whom the MF Global trustee does or will owe refunds, monies, etc.

 

So...new modus operandi = do all criminal activity - when one is a primary dealer, headed by an ex-senator, ex-CEO of another Primary Dealer (i.e. Vampire Squid), and Obama Bundler, being part of the incestuous network of vipers that feeds off of and networks with The Federal Reserve 'Bank' & The Bernank, well before any measured steps towards the filing of your bankruptcy petition are prepared, because given your status on all accounts (pun intended), you're rubberstamped and bullet proof, with the worst case scenario being that you'll be on the receiving end of a 'get out of jail' card one way or another (even if by Presidential Pardon).

Sat, 12/17/2011 - 17:55 | 1990334 Mauibrad
Mauibrad's picture


Check it out Tyler, officially a new word, de-hypothecation

http://www.urbandictionary.com/define.php?term=de-hypothecation

Thu, 12/15/2011 - 21:22 | 1985745 Surly Bear
Surly Bear's picture

Yes, Tyler, thank you so much for covering this story. 

Fri, 12/16/2011 - 00:38 | 1986036 Oh regional Indian
Oh regional Indian's picture

Ahhhah! Nice. Putting a voice to "the" Tyler or "A" Tyler? Curious minds want to know!!! ;-)

ori

/this-that-and-the-4th-reich/

Fri, 12/16/2011 - 03:22 | 1986215 Mauibrad
Mauibrad's picture

Tyler, did you click down to this:

"Most articles have posited or assumed that the counterparty to the $6.3 billion European debt repo-to-maturity trades was a large Wall Street entity, such as Goldman, JP Morgan or even Nomura. This is likely not the case because regulatory filings of the broker/dealer unit indicate that, as of March 31, 2011, the counterparty was an affiliate of MF Global Inc." 

Much more on JPM in this at:

From:  http://english.economicpolicyjournal.com/2011/11/mf-global-bankruptcy-cheat-sheet-where.html

Sat, 12/17/2011 - 03:37 | 1989564 Tompooz
Tompooz's picture

wow.Never realized that Max Keiser was with PressTV at that time. The last few years have made him older. Tks for the links.

Fri, 12/16/2011 - 02:44 | 1986178 surfersd
surfersd's picture

I'm a commodity trader for 30 years and I got had 150k stuck there. have 60% back now another 12% coming next week. What is fucked up is that I saw it coming on the Wednesday before, but was traveling, called my IB in the AM on Friday morning talked to back office and they said no problem they'll send the wire. Called a buddy who managed a fund which I had about the same in and told him to get the money out. Couple hours later he texted and said our money was out. Didn't look into my bank until Monday thinking that my call to wire funds happened hours earlier. Unfortunately, my money never got out.

I ran a very large FCM energy commodity desk for a long time and for some wires to make it through and others were not able means something is seriously wrong. I do believe that I will get my money back, but the damage that has been done to the commodity market is irreparable. 

To listen to Barney Frank talk about hte need for more regulation makes me sick. Corzine's butt buddy Gensler recuses himself and then Corzine the CEO resigns after one day, so he can plead that he knew nothing.

Please I will give up by 28% to see these guys hang.

Gold bitchez

 

Mon, 12/19/2011 - 06:33 | 1993542 Cadavre
Cadavre's picture

Heard or read (maybe Celente said) - but 72% is about all you'll get back,

I am still trying to figure out what's going on behind the mirror - i mean come on - 1.2 Billion - that's chump change - it costs more than that to turn the heaters and lights on at the Rayburn Office Building CSPAN Studio - and what happened to all the receipts from all the congressional page kiddie porn CD's - shouldn't taxpayers be getting a royalty off that enterprise too, because, and despite whats any of em say  - cable  companies don't pay for CSPAN coverage - taxpaying cable company subscribers pay for CSPAN coverage (no subscribers - no cabel companies) AND those very same cable subscribers (and non sunscribers) also own all the real property and structures in DC - I just don't get it anymore.

America love - or - or - or put a big air tight tent over DC and have the Terminex guy pump it full of bug juice - whatever escapes through the seams can be used as chum.

Thu, 12/15/2011 - 20:36 | 1985638 youLilQuantFuker
youLilQuantFuker's picture

Claro. TY Pill.

Thu, 12/15/2011 - 20:21 | 1985606 Careless Whisper
Careless Whisper's picture

Approx. 1 a.m. - 2 a.m.  - CME learns the deficiency is real.

Note to CME: The person at the other end of the deficiency was once the CEO of GoldmanSachs.  It shouldnt take until 1 a.m. to figure this one out.

 

Fri, 12/16/2011 - 00:25 | 1986022 palmereldritch
palmereldritch's picture

Based on the disclosed discovery timeline, Corzine should be changing his name to Waldo

Fri, 12/16/2011 - 01:20 | 1986094 Leraconteur
Leraconteur's picture

Let me guess. Gen X or Millennial, right?

Learn to read and keep focus for more than 140 characters. Others who can are not going to be around to hold your hand and do your work for you.

Fri, 12/16/2011 - 11:59 | 1986941 UnderDeGun
UnderDeGun's picture

Really? You couldn't understand a simple written timeline? :sigh: (40 characters is right on for tweet-tards).

Thu, 12/15/2011 - 20:01 | 1985555 WestVillageIdiot
WestVillageIdiot's picture

I will bet every penny we have to our name that had Jon Corzine run this company in 1784 they would have been out of business before George was inaugurated.  Probably much earlier. 

Thu, 12/15/2011 - 20:07 | 1985575 redpill
redpill's picture

Undoubtedly.  Make no mistake, this utter disaster is at the feet of Jon Corzine.  It was his insistance on the heavy investing in peripheral EU bonds and continued high leverage combined with weak earnings that caught the attention of ratings agencies to begin with.  Everything that happened since was a snowballing clusterfuck of incompetance and complete vacuum of leadership.  He is a total failure.  If there ever was a time to pierce the corporate veil, this would be it.

Thu, 12/15/2011 - 20:09 | 1985582 WestVillageIdiot
WestVillageIdiot's picture

Thank you for that.  I like your anger.

Thu, 12/15/2011 - 22:49 | 1985887 ljag
ljag's picture

I do not know what to think anymore. I am kinda lost on that "other side of the trade" thingy

Fri, 12/16/2011 - 03:05 | 1986195 Bringin It
Bringin It's picture

I am amazed that so few have pointed out the similarities with his (Corzine's) most recent turn on stage, prior to MFGlobal.

"When Jon Corzine was governor, the state of New Jersey invested $180 million of the New Jersey pension fund in Lehman Brothers, only months before Lehman went bankrupt. That was a very risky investment, and it was almost all lost."

http://www.app.com/article/20111205/NJOPINION02/312050011/Corzine-should...

It's so blatant!!!!!!! 

First they came for Lehman ... I did nothing.

Then they came for MF Global ... ...

Anyone who runs is a VC.  Anyone who stands still is a well disciplined VC

http://www.youtube.com/watch?v=S06nIz4scvI

 

Thu, 12/15/2011 - 20:16 | 1985598 Jumbotron
Jumbotron's picture

Actually Corzine is the reincarnation of this guy.......

http://en.wikipedia.org/wiki/William_Duer_%28Continental_Congressman%29

who caused this.....

http://en.wikipedia.org/wiki/Panic_of_1792

and ended up here......

http://en.wikipedia.org/wiki/Debtor%27s_prison

Which is what we need to turn Guantanamo Bay into for Corzine and his ilk.

Waterboard wishes and hide the soap dreams.

Thu, 12/15/2011 - 21:04 | 1985679 Mactheknife
Mactheknife's picture

Took the guys from IB two hrs to figure this out.  So...if stealing 1.2bil and lying to Congress doesn't get your ass thrown in jail, what will?  Oh wait...PROTESTING against assholes who steal 1.2bil and lie to Congress...that's the ticket.

Thu, 12/15/2011 - 23:06 | 1985904 hedgeless_horseman
hedgeless_horseman's picture

 

 

flag as awesome (1)

 

If only we could get people to understand that they should be protesting against assholes who steal 1.2bil and the assholes in congress who enable and protect them.

Fri, 12/16/2011 - 06:02 | 1986283 Calmyourself
Calmyourself's picture

"and the assholes in congress who enable and protect them."

+1.2 billion, the assholes who enable the entire stinking ponzi..

Fri, 12/16/2011 - 00:31 | 1986029 island
island's picture

And just to add evidence to your point, read this post:

"My Occupy LA Arrest"

http://myoccupylaarrest.blogspot.com/2011/12/my-occupy-la-arrest-by-patr...

.............

IMHO, any politician who knows about this, up to and including the POTUS, and isn't shouting about it, is a traitor to the people and our country.

Thu, 12/15/2011 - 20:00 | 1985547 Centurion9.41
Centurion9.41's picture

Don't forget the Refco legacy....

Thu, 12/15/2011 - 20:42 | 1985650 johnu78
johnu78's picture

PREACH IT BROTHER, PREACH IT!!!!!!!!!

 

-John
http://www.youtube.com/watch?v=Jo7a5BAj7FQ

Fri, 12/16/2011 - 07:22 | 1986332 Al Gorerhythm
Al Gorerhythm's picture

Instead of Motherfucking Global, How about as an additive ir Paulson stutter; Mother Fucking, M-m-m-missing F-f-f-Funds G-g-g-global.

Thu, 12/15/2011 - 19:47 | 1985498 WestVillageIdiot
WestVillageIdiot's picture

Why would you want to fuck up the bottom of the ocean that way?  It is funny how evil we think Goldman is (rightfully so) and JPM seems to often get a pass.  The public has begun to understand how toxic Goldman is.  How long will it take them to realize how toxic JP is? 

Thu, 12/15/2011 - 21:51 | 1985786 bilejones
bilejones's picture

Because JPM is one of the notorious naked metal shorts.

Because CME settlements are increasingly ( by smallish guys) being requested in cash.

Because the CME ( like SLV and Gld) has far more out in paper metals than they hold in physical.

Because Mo Fo Global was the largest broker for individuals.

Because if the customer cash is gone they cannot settle trades and take delivery.

Why, one might expect a real hard smackdown to take place following these events, what?

Thu, 12/15/2011 - 19:54 | 1985517 Papasmurf
Papasmurf's picture

and stay there

Thu, 12/15/2011 - 20:00 | 1985553 disabledvet
disabledvet's picture

the implication is that MF was set up by the JP. I'm calling "long shot" on that one. Possible--but the money JP would have gotten is not going to cover the massive blow up this is going to cause in Europe tomorrow. Plus you get the attention of every committee in DC. In effect "this is an attack" under this scenario. I'm sticking with my "pinata got smashed" theory and it was every trader for himself. Corzine finally started trying to blame someone else for the fiasco. "I don't know" is not an answer but in fact "a question that leads deeper into the abyss." Can't you blame the lawyer? She was the first one to say everything was fine...as usual. Anywho we shall see if there's 30 billion missing in Europe which leads to the collapse of a major European bank tommorrow. I sense BofA is going to be nationalized...but who knows. Maybe the market will rally another 50.

Thu, 12/15/2011 - 21:59 | 1985808 sgt_doom
sgt_doom's picture

disabledvet makes many excellent points and overall I'm in agreement.

Corzine has never really been a member of the inner circle, so where as all this rigged trading and speculation was involved (as opposed to the much hyped "casino bets" etc.) Corzine truly was betting risky on his own very limited abilities.

Back when Corzine was at Goldman Sachs and "shared" the CEO post with Hankster Paulson, Paulson went ballistic on Corzine one day when Corzine, without Paulson's knowledge, began sounding out a takeover of the Mellon Bank.

The reason for the fireworks?  Mellon, together with DB Shaw, was doing a deal to take over B of A, through Nations Bank, which B of A later became in everything but name.

Corzine would have brought undue attention to Mellon and possibly the backroom deal going on (working B of A to do a non-hedged multi-billion investment in Russian bonds, which later went sour, thus making them vulnerable to the takeover by NationsBank Corporation).

Corzine does still have friends in high places, so he should be yet another bankster gangsta who ends up avoiding jail time --- but his pathetic butt, along with the Murdochs (Rupert and little Jimmy) should be behind bars by this time.

 

http://www.computerworlduk.com/news/it-business/3325313/jp-morgan-expands-deployment-of-fpga-based-supercomputer/

Fri, 12/16/2011 - 03:13 | 1986205 Bringin It
Bringin It's picture

"Corzine has never really been a member of the inner circle

You mean Jon Corzine, former head of GS? has never really been a member of the inner circle?  You're gonna have to share your defintion of inner circle I believe.

Thu, 12/15/2011 - 20:24 | 1985614 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Isn't the bottom of the ocean where the giant squid live?

Going home...

(Are they cannabalistic?)

Thu, 12/15/2011 - 20:48 | 1985662 Whoa Dammit
Whoa Dammit's picture

"Procajlo and senior management at CME have another call with MFGH, including Steenkamp and Ferber, who assure CME that they have drawn down all or substantially all of their line of credit — which has a limit of approximately $1.2 billion — but are not yet using the money."

So where did this money go? Does anyone here at ZH know?

Fri, 12/16/2011 - 00:48 | 1985758 fuu
fuu's picture

Corzine testified today that at 10 days out from the end they had not tapped either the secured or unsecured credit lines from JPM. Abelow didn't get asked directly about before the bankruptcy and did not answer about who the largest creditor presently is.

Thu, 12/15/2011 - 20:59 | 1985681 Freddie
Freddie's picture

"Way down upon the ocean - is where I want to be.."

Atlantis - Donovan 

http://www.youtube.com/watch?v=7_pvKEfTDk4

"Now go home and get your f**king shine box"

 

Thu, 12/15/2011 - 19:56 | 1985528 falak pema
falak pema's picture

I always knew the best legal systems were those where you were both party and judge (or God's agent). Then tri-party really acquires true new meaning; the other guy has no chance. 

Thu, 12/15/2011 - 19:59 | 1985542 Subprime Society
Subprime Society's picture

I notice the comments have become a bit more mean sprited in the last two years, to put it mildly.

Thu, 12/15/2011 - 20:02 | 1985562 Jumbotron
Jumbotron's picture

First come the comments....

then come the bullets

Fri, 12/16/2011 - 10:28 | 1986674 DOT
DOT's picture

...and how does that make you feel ?

Thu, 12/15/2011 - 20:01 | 1985556 Turd Ferguson
Turd Ferguson's picture

Tyler: This is outstanding.
Thank you.

Thu, 12/15/2011 - 20:14 | 1985593 WestVillageIdiot
WestVillageIdiot's picture

What would be outstanding would be to see some of these fuckers go to jail.  if you or I did 1/100th of this bullshit we would be fighting off Cobra and Bulldog in Attica. 

Fri, 12/16/2011 - 01:24 | 1986085 FEDbuster
FEDbuster's picture

I would much rather see Corzine "Budd Dwyer" himself on Mad Money tomorrow night.  Just pull out a .45 and blow his fucking brains out all over Jim Cramer.  That may not get the customers their money back, but it would go along way into restoring some justice in the financial system.  If that doesn't happen, maybe he will be found naked with his hands and feet tied hanging from a balcony at the Ritz Carlton, a "Kalifornia suicide".

Fri, 12/16/2011 - 09:52 | 1986551 Chief KnocAHoma
Chief KnocAHoma's picture

No No... we need him alive and in protective custody right away. Get him out of the reach of an potential "accidental overdose" or "mysterious hanging".

If I didn't think he would enjoy it, I would suggest we find two of the biggest bull queers we can, and lock them all in a room together. Every few hours we could open the door and give the queers some food, gatoraide and viagra.

After a few days, we could ask Corzine, "You ready to talk or would you like more bunga bunga?"

 

Thu, 12/15/2011 - 20:14 | 1985595 notbot
notbot's picture

Riveting, thanks Tyler

Thu, 12/15/2011 - 20:01 | 1985561 Strut
Strut's picture

Other than 1 mention of his name regarding a request for his phone #, there is no other mention of Corzine's involvement anywhere in this timeline. I call bullshit shenanigans. The Morgue had everything to do with this, and I have a gut feeling it was related to COMEX positions.

Thu, 12/15/2011 - 20:15 | 1985597 WestVillageIdiot
WestVillageIdiot's picture

I agree with your sentiment but gave you the +1 for your avatar.  Michelle swallowing a corndog whole is just too perfect. 

Thu, 12/15/2011 - 20:03 | 1985564 max2205
max2205's picture

TD sure rings matter but the downgrade should have come 39 days prior or 6 months prior. Raters suck

Thu, 12/15/2011 - 20:21 | 1985608 4horse
4horse's picture

p2                                repeatedly

... everything falling into place.

 

as nauseating as it is excruciating, a year here on this most sickening of sites belies what specific financial knowledge has already contributed to our very own Truth Commiseration --yes. we sheeple herein have seen fit to form what's yet another committee, where the truth goes to die-- as we further and further continue to use our assumed exclusivity and its do-nothing humor to remove ourselves from incrimination . . . our own private little nation of fools

Living In Fear. all while and in the meantime afraid of Whom: a very small ethnocracy of jews, whose actions not just speak louder than words but, holophrastikos, do in fact silence an entire occident from saying the one word which is here as everywhere its own very simple explanation of all such hurt and harm: ROTHSCHILDT: The City Of London, whose very active do-doers shit wherever they want and all over us

 

while in the meantime here still yet again left reading such swallowed shit as this:Enough of anonymous corporate or governmental lables...we need names...names.
reply
Wed, 12/14/2011 - 03:13 | 1977826 4horse

take a wild fucking guess

corzine.paulson.bernanke.geithner.dimon.blankfein . . . mere hirelings

United States . . . ? . . . this is the Ukraine: fin de seicle PNAC < 19th . . .
where the same blueprint by the same few jews is being followed right down to its T-- TERROR --and how soon the removal of yet another 30million people in a Holodor here everyday joked about in our branded black humor as just more mere FEMA material over already missing americans ridiculed like just bounced CHEKA out of their financialfunnies of that funniest DHS __cancelled__ one-by-one being stripped right in front of us, of their humanity, while an xhumanties' man like myself quote the great minds behind this self-same suffering of What Is To Be Done and What Then Must We Do . . . ? . . . To Who

a few jews: whose written history is the hidden history of all our own hiding away from their last hundreds-of-years of full-spectral dominance

geithner.dimon.blankfein.Rubin _stein. Safir _s. Gold _men. Silver _steins. Diamond _mines. The Family Jew_els

denying, denying, denying the obvious, as each and every one of these foreign apparats defy us to our face-- yeh. like whatcha gonna do about it

 

Charge Them. CHARGE THEM. Charge them with their crimes: INDICT each and every individual Roth's Child for what each treasonous trader of american value for International Jewry is doing right here/right now right-before-our eyes every single hour of every single day . . . . . . and do so, each individual jew, before these few again, despite all their present searching-surveillance-and-dhs, again sacrifice ALL of their innocent own along with whoever else gets in their way of again successfully accomplishing such massmedia massmurder worldwar slaughter as is only their own arsenal from Antisemitisn to Zionism

 

 

this now completed full year here has made me as sick of myself as everybody else: all along and altogether for the want of one word, holophrastikos, that is the imperative of just this one simple single verb: DO

 

 

needing use, hapex legomenon, only once

 

.

 

enough.
too much.

verbiage

Thu, 12/15/2011 - 21:13 | 1985716 Waffen
Waffen's picture

As recent as 3 months ago, I would have considered that much to extreme an ignorant.

However with some recent research, including the incredible lies behind the holocaust, well it's made me aware of a very consistent pattern in history.

To deny it is is to our own detriment and I am referring to the detriment of free humanity.

We are reaching the time of the summing up. NDAA, SOPA etc, the pieces are being placed and the target is us. Our time is short and we do not have time to dally.

Fri, 12/16/2011 - 00:05 | 1986001 Caviar Emptor
Caviar Emptor's picture

If the holocaust was a lie, so was the whole ww2 story. Anything and everything can be spun in a different way, with a differnet bias through the prism of your mind. Sinister US provoked the war, for example. Innocent US oil companies wanted in on a plan for post-war Nazi control of the US in exchange for secret oil contracts. Maybe up was down, maybe left was right. And maybe you dream in black and white about kiddie porn every night for all we know

Fri, 12/16/2011 - 00:46 | 1986051 Waffen
Waffen's picture

There are certain believed facts that are out right lies.

I am a historian by degree and trade and there are believed truths that do not hold up to the slightest amount of inquiry.

Fri, 12/16/2011 - 01:05 | 1986074 Oracle of Kypseli
Oracle of Kypseli's picture

Here are two facts:

1.  The Japanese trading companies were gaining on the US and The military industrial complex in the US wanted to draw Japan into the war. That's a fact that was just verified last week.

2.  The UN considers Zionism a racist organization.

These facts however, do not make my Jewish neighbors part of any conspiracy.

Many of these people who have this insatiable desire for power and money are sick. "philargyria."

Look for these evil people and expose them rather than condemn a group. 

BTW: There are still some honest bankers

Fri, 12/16/2011 - 01:20 | 1986093 Caviar Emptor
Caviar Emptor's picture

Agree. About Japan before ww2: the whole game was competition for oil resources in Indoensia and Brunei, Malaysian rubber and of course control of crucial shipping lanes of Malacca. US had presence in the region, so did UK and both felt threatened by Japanese expansionism. Of course Japan was totally oil dependant and required the resources for expansion, development and war. 

Fri, 12/16/2011 - 09:35 | 1986506 RiverRoad
RiverRoad's picture

And at the time Japan bombed Pearl Harbor the US was blockading all their ports precluding oil delivery.  And we were shocked, shocked, and totally taken by surprise when they bombed Pearl Harbor.....

Sat, 12/17/2011 - 09:00 | 1989653 Al Gorerhythm
Al Gorerhythm's picture

BTW: There are still some honest bankers

In the Fractional Reserve system? FFfaaaaarrrkkk!

Thu, 12/15/2011 - 21:20 | 1985738 nmewn
nmewn's picture

You gonna copy/paste this on every thread?

Thu, 12/15/2011 - 22:08 | 1985829 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

If so, I'll copy and paste this:

Jews don't go to Bohemian Grove

They aren't allowed in, unless they are gay assed Kissenger

Come back and name another Jew that goes to the Grove

And when you can't, ask yourself who is running things in America

Bush/Cheney/Rockefeller....not jews

Thu, 12/15/2011 - 22:26 | 1985865 nmewn
nmewn's picture

Its a friggin trip ain't it?

Why, its almost as if greed and power lust is not confined to certain races & cultures.

Its everyone with two eyes...quick, pluck one out!!!...lol.

Thu, 12/15/2011 - 23:28 | 1985938 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The web has left many blind, and it ain't the Harrimans, Pierces, Stanfords, Vanderbilts, Morgans; they've kept their all seeing eye atop the Pyramid scheme.

Fri, 12/16/2011 - 00:16 | 1986012 Monedas
Monedas's picture

Barbara Bush is a Rothschild ! Everyone already knows that, no ?

Fri, 12/16/2011 - 00:32 | 1986030 Jumbotron
Jumbotron's picture

That's why her face is on the One Dollar bill.

Fri, 12/16/2011 - 01:13 | 1986084 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

The Pierces are not Jews.

Fri, 12/16/2011 - 03:32 | 1986219 Bringin It
Bringin It's picture

Not enough is said in the West aabout the Ukrainian mass killing.  Not enough is known about the composition and exploits of the NKVD.

I'm sure Bohemian Grove is very entrtaining, yet no one but tax-cheat Timmy can run the Treasury??  He's most qualified in what way?  No one but Ben Bernak can succeed the Maistro?  Money, the flow of money is where the real power lies.  Hollywood and the media is the major control mechanism.  See the Tavistock Institute in the City of London.  Where did Edward Bernaise come from? 

At the same time, like the Oracle says not everyone is involved.  Sometimes, it's like you can't say the Cossa Nostra is an Italian thing.  The esteemed Senator from CT, Joe Leiberman wanted to pass a law somewhat to that effect, although, of course it wouldn't provide coverage to Italians.

I suggest we all revert to reason and everyone call a spade a spade.

Fri, 12/16/2011 - 16:09 | 1987966 Cadavre
Cadavre's picture

Most confuse Jews with Zionists. A Zionist is not a Jew. A Zionist is a Zionist, period.

There were no Jewish Slaves building pyramids.

Moses was not a blue eyed Charlie Hestonish white guy - he was a black dark eyed Ethiopian.

Jesus was not the blue eyed goldy locked presbyterian surfer many alleged Christian churches, in defiance of their 10 commandments, idolatrize on their chapel walls, he was a scruffy bearded Egyptian with a lot of Ethiopian blood (and coloration).

European Jews are the descendants of the Ashkenazim whose ancestors made an emergency overnight conversion to Judea in 784 AD so they would not be slaughtered by the Islamic warriors that conquered much of the Mediterranean because Islam considered Jews brethren .

The first so called exodus, in modern times, of Jews to Palestine was accommodated by Nazi Germany on the Nazi ship Tel Aviv in 1938. THe Nazi administration also provided German Zionists with machine tools and the most valued currency of the period, the German Mark. The Zionists left "true" Torah German Jews to suffer the fate of all Germans. Germany did not declare war against Judea - Judea (Zionism) declared war against Germany.

When the Zionist began to take over Palestine, the indigenous Palestinian (semitic) Jews, who had been living as valued members of the community became the modern diaspora and migrated to Syria, Iraq and Iran. Iran has the largest population of Jews outside of America and Israel.

There were no concentration camps in Germany. There were refugee centers located near essential goods distribution centers. Germany had been fire bombed to the pre-stone age and the refugee centers were the only place scarce resources and services were available.

At the beginning of both world war one and two, before the Zionist controlled media and Zionist Sayans in the US government shouted above fact and common sense with a full frontal propaganda and revisionist shock and awe attack, almost all Americans, including American Jews, were behind the German war effort and against the UK. The cult of shadow banking protected in London is a Zionist enterprise. The Federal Reserve is a "shadow bank" and not subject to regulation or review  was established through WZO blackmail of Woodrow Wilson. Te bag man for that event was both a Zionist and the US Supreme Court Chief Justice William Brandeis.

The Islamic canon, the Quran, is almost a perfect paraphrase of the true Jewish Canon, the Torah, with the addition of some of Christian New Testament (before Rome had edited the familiar current version), Islam beleives in the Christian Savior, Jesus. In Mexican Catholic churches the word for god is Dios, In Christian churches in Iran the word for god is Ala.

The reformed Jewish (Zionist) movement emphasizes the Talmud. The edicts in the Talmud make Mein Kamp look like a children''s book.

The US does not give a shit about Israel - to US war industries and the Global Usury Exchange - Israel is disposable collateral - a loss leader marketing tool to foster the War Usury.

An attack on Iran means that the Zionist state will be an ashtray filled with the ashes of the weak pretentious false claimants to Abraham's loins.

Israeli leadership and so called American Jews financing directing and supporting Israel's behavior are little more than modern day Josephus's - the traitor of Masada.

A Zionist is not a Jew. A Zionist is a Zionist, period.

Fri, 12/16/2011 - 01:16 | 1986086 sgorem
sgorem's picture

aye, agree 4horse, +trillions......................

Thu, 12/15/2011 - 20:32 | 1985631 Former Sheeple
Former Sheeple's picture

Tyler, is the fix in already?

Corzine only mentioned (3) times in over 3,000 words?

P.s. Can you give some thought to adding some sort of recurring monthly charge for the service? Having to pay may knock down some of the trolls setting up new accounts monthly. You could also have something (Au, Ag) sybols on their profile header indicating their level of support for the site. New visitors to the site may be more inclined to read a Gold member who has been here from the start for instance. Just a few throughts, I'll pay either way and will make a contribution tomrow. This site has changed my life and has alowed me to prepare for the reset. Many thanks!

 

Thu, 12/15/2011 - 22:14 | 1985843 Sabibaby
Sabibaby's picture

What do you have against sheeple learning about the circus we're living through for free?

You want to know how to donate toolio, buy a freaking T-Shirt!!!

Thu, 12/15/2011 - 23:30 | 1985945 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Bingo.  Let's welcome the sheeple, and hand them their asses.

Fri, 12/16/2011 - 01:11 | 1986082 Sabibaby
Sabibaby's picture

I can't stand the tools we get here trying to turn ZeroHedge into FriendFaceBook :) happy, happy, fucking day!!! The idiots need to go update their status...

Fri, 12/16/2011 - 07:13 | 1986326 Former Sheeple
Former Sheeple's picture

Please slow the fuck down -

Voluntary system (if I want to sent the Tylers $50 or $100 per month automatically to support the site I can, without having to remember or be billed. Not a twitter/facebook thing -I've read some very good contributors here Mr. Len Hen for instance and would love to be able to skip though some of the trolls. Sorry that was missed. Still free for the masses.

You can do your part by buying a T-shirt, because this place runs on t-shirt sales.

 

Thu, 12/15/2011 - 21:36 | 1985721 SloSquez
SloSquez's picture

I threw up in my mouth three times.  That is the most disgusting bit of verbiage I have ever read.  Thanks TD, but no thanks!  They deserve what they have coming.  Truly the most circular shit i have ever read.

Thu, 12/15/2011 - 21:36 | 1985762 Arkadaba
Arkadaba's picture

Kudos,

I watched, I saw, I listened

But would never be able to put all the dots together on my own.

I did see there was some interesting stuff coming out in the second committee (when most Congress people had gone home )

Thank you

Thu, 12/15/2011 - 22:05 | 1985823 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Read this to understand why JPMorgan, due to being one of only two tri-party repo clearers, effectively can do anything it wants in the capital markets:

Federal Reserve emergency lending facilities, bitchez!

Thu, 12/15/2011 - 22:07 | 1985827 StychoKiller
StychoKiller's picture

Definition of a surprise:  A fart with a lump in it!  In this case, the lump was a stinky pile of rapidly depreciating commercial paper(s).

Quick, someone grab the customer's paper towels and wipe it up...

Thu, 12/15/2011 - 22:28 | 1985869 Cheesy Bastard
Cheesy Bastard's picture

Never trust a fart.

Fri, 12/16/2011 - 00:18 | 1986015 Monedas
Monedas's picture

An atomic fart....has a little "fall out" !

Fri, 12/16/2011 - 01:02 | 1986069 gangland
gangland's picture

what?

Fri, 12/16/2011 - 03:53 | 1986231 Mauibrad
Mauibrad's picture

You know, Tyler, I notice your phone chronology doesn't once mention JPM.  I believe this article better explains it:  http://english.economicpolicyjournal.com/2011/11/mf-global-bankruptcy-cheat-sheet-where.html  People were writing about this weeks ago.  BTW, are they past the aforementioned court deadlines?

Fri, 12/16/2011 - 04:03 | 1986234 vast-dom
vast-dom's picture

fantastic tyler! thank you!

Fri, 12/16/2011 - 04:39 | 1986257 been there done that
been there done that's picture

Tyler, Thanks for all you do. I see you setting it up for us and hopefully the MSM catches on eventually. I am sad to say though, that after working my day job and reading a lot of stuff every night, that I often don't have time to read through the long reports. I guess most of the country gets turned into debt slaves that have no time to study anything and I guess that is the plan. I read a lot and I still can't keep up. But thanks for laying it out so folks w/ less time can see connected dots.

 

Fri, 12/16/2011 - 04:39 | 1986258 been there done that
been there done that's picture

Tyler, Thanks for all you do. I see you setting it up for us and hopefully the MSM catches on eventually. I am sad to say though, that after working my day job and reading a lot of stuff every night, that I often don't have time to read through the long reports. I guess most of the country gets turned into debt slaves that have no time to study anything and I guess that is the plan. I read a lot and I still can't keep up. But thanks for laying it out so folks w/ less time can see connected dots.

 

Fri, 12/16/2011 - 07:59 | 1986357 dcb
dcb's picture

just a suggestion when posting something like this, some highlights, bold or yellow for the key points instead of having to wade through the entire thing.

Thu, 12/15/2011 - 19:41 | 1985477 Silver Bug
Silver Bug's picture

Everyone should be interested in this report. This is a true test of the system.

 

http://ericsprott.blogspot.com/

Thu, 12/15/2011 - 19:54 | 1985519 trav7777
trav7777's picture

you have to wonder wtf the real people at MFG were thinking...they must have known they were doomed.  Wonder whether the treasurer knew the funds were stolen...this HAS to go to Corzine; NFW anyone would make a move like that without cover from him.

Thu, 12/15/2011 - 20:04 | 1985567 disabledvet
disabledvet's picture

"MONEEEYYYYYYY!"...sure it wasn't theirs...but they got John Corzine!

Thu, 12/15/2011 - 20:22 | 1985610 seek
seek's picture

Not to mention sending CME and CFTC on a wild goose chase for an error. Everyone who touched that particular lie should be looking a federal pound-me-in-the-ass prison. The timeline makes it pretty clear we had multiple participants in fraudulent representation to regulators. I have to wonder if some 2nd or 3rd level management hasn't figured out they've been set up and are heading to Paraguay.

The thing I'm trying to puzzle out is that I'm quite convinced the conspiracy theory that the COMEX would be busted is true, and how one weaves that into this? Perhaps they knew MFG was over-leveraged and someone back-channel suggested the downgrade, creating the opportunity to liquidate? Had the IB deal gone down in time, the contracts wouldn't have been liquidated and the COMEX would go boom.

This is an interesting puzzle, like 90% of the pieces are there, but all the crucial details are in the 10% thats missing.

Fri, 12/16/2011 - 01:07 | 1986076 gangland
gangland's picture

everybody knew

Fri, 12/16/2011 - 01:22 | 1986095 Oracle of Kypseli
Oracle of Kypseli's picture

Yea. the guy that emailed: "We may have it" without giving explanation. Rouse to gain time and transfer the loot.

Thu, 12/15/2011 - 21:56 | 1985804 masterinchancery
masterinchancery's picture

Note the repeated lies and fraudulent assurances from Laurie Ferber, GC, and other MFG officers and employees, and that Corzine actively participated in the illegal use of customers' funds and collateral. These alone are felonies.

Thu, 12/15/2011 - 19:38 | 1985463 falak pema
falak pema's picture

  • 8:06 p.m.: CME receives MFGI's seg. statement for 10/28 showing a segregation deficiency of $891,465,650.

Now that is deficient to a point where efficiency becomes irrelevant. Humpty Dumpty time, all the king's horses and all the king's men...

No wonder Corzine suffers from Amnesia. I would for a hundreth of that amount. .9 billion/100 = 9 million. That's enough to give me amnesia. I'l buy that with chardonnay on ice please.

Thu, 12/15/2011 - 19:47 | 1985501 Wakanda
Wakanda's picture

9 mill for ??????

I forgot allready!!!

Sat, 12/17/2011 - 09:11 | 1989659 Al Gorerhythm
Al Gorerhythm's picture

Cool, as long as it's not hypothicated.

Thu, 12/15/2011 - 19:42 | 1985464 Zero Govt
Zero Govt's picture

What a cracking Christmas present for fleeced MF'ing Global customers

just watched the Senate Hearing with 6 Turkeys (US Regulators) lined up for questioning and pretending to be on the ball ...should have been shooting... there's still time to stuff and cook them you know!

Thu, 12/15/2011 - 19:45 | 1985492 Wakanda
Wakanda's picture

Don't serve that rotten meat.

Thu, 12/15/2011 - 19:56 | 1985527 WestVillageIdiot
WestVillageIdiot's picture

One's opinion of regulators can only be truly formed after seeing them in action.  It is a fucking disgrace.  It is part political correctness, part affirmative action, part confusion and a huge dash of incompetence sprinkled on the top.

 

 

Thu, 12/15/2011 - 20:00 | 1985548 redpill
redpill's picture

Don't forget the corruption cream filling.

Thu, 12/15/2011 - 20:28 | 1985624 WestVillageIdiot
WestVillageIdiot's picture

No wonder my souffle collapsed.  I forgot to add corruption into the recipe.  Thank you for correcting that.  I will not make the same mistake again. 

Thu, 12/15/2011 - 21:03 | 1985691 DeadFred
DeadFred's picture

Souffle??? Real men make quiche.

Fri, 12/16/2011 - 01:26 | 1986101 Oracle of Kypseli
Oracle of Kypseli's picture

Try ordering quiche wearing a red speedo in an Alabama beach.

Thu, 12/15/2011 - 19:38 | 1985465 TheSilverJournal
TheSilverJournal's picture

The people are only concerned about inflation because the largest burden of inflation is on those who receive the newly created money last. The true deflation concern is assets deflating enough in value to cause the banks to go bankrupt.

What is all of This Concern about deflation?

Thu, 12/15/2011 - 20:10 | 1985584 disabledvet
disabledvet's picture

interesting theory. "we had the inflation first" now come's the collapse. the government stats have lied about it....witha quality follow on from the real estate clowns. now that the tax cut is going to be paid for by Fannie and Fred "the game is up." Uncle Salami is truly "broke" in the sense that their is no "peace dividend." I'll skip with the DC stuff cuz it's over this site's head...suffice to say do not be surprised to see European calamity spill into US debt markets leading to total financial mayhem. AVOID COMMODITIES RIGHT NOW. The government has to do it's thing first...and what that "it" is will define just what in the famous words of Bill Clinton "what the meaning of is...is."

Thu, 12/15/2011 - 23:52 | 1985980 TheSilverJournal
TheSilverJournal's picture

The US debt markets are leading to calamity on their own. The US is in fundamentally worse shape than the Euro. For example, if the ECB gets together and prints Eurobonds and kicks the can down the road, the US has much less road than the Euro. But if any large European country defaults, then yes..the calamity would spread everywhere and the world fiat ponzi would crumble.

Commodities, in particular the money commodities is what you want to buy because currency is being destroyed. The only way to postpone the ponzi collapse longer is to print massively greater amounts of currency.

Fri, 12/16/2011 - 09:00 | 1986433 flattrader
flattrader's picture

The sovereign who collapses last "wins."

Fri, 12/16/2011 - 12:18 | 1986985 TheSilverJournal
TheSilverJournal's picture

Those who get out of the ponzi earliest, get out best. That goes for every level from the individual to the sovereign and everything in between. The longer the sovereigns stay involved in the ponzi, the worse the imbalances become.

Americans are suffering because artificially cheap money is destroying productivity. Mis-pricing money causes resources to flow into unproductive areas. The return of market-priced money will expose the malinvestments that have been created by artificially cheap money being pumped into the economy and cause short-term pain, but will also cause a boom in productivity because resources will once again be allocated much more efficiently.

Postponing the pain by providing more artificially cheap money only causes more malinvestments and therefore even greater pain in the future. Bankers and politicians enjoy their control over the printing press and do not want to be blamed for the pain, which is why the pain will likely be delayed until so much artificially cheap money is created that the USD becomes worthless.

TheSilverJournal.com

Thu, 12/15/2011 - 22:22 | 1985858 omniversling
omniversling's picture

Help please for a non-trader...could someone please explain how the leverage:asset value equation works? Am I right in understanding that in an deflationary period it's the reduction in (on the book?) asset values that can tip heavily leveraged entities to go under?

I read regularly that an entity with leverage of 50:1 only needs a drop in asset values of 2% to go 'flatline', or a leverage of 25:1 going sameway with a 4% drop in asset values. Could someone flesh that principle out for me?

And who decides 'asset values' (is that something like being 'marked to market' -ie agreed or certified value- as opposed to the 'claimed' value of an asset?).

Presumably that's the kind of info or data that auditors or rating agencies use to decide if a company/instituion/bank is solvent?

And isn't this all profoundly theoretical if there is so much 'off books' derivative and rehypothecation action happening, where 'assets' may in fact already be liabilities?

Thanks ZHeads

Thu, 12/15/2011 - 23:57 | 1985990 TheSilverJournal
TheSilverJournal's picture

Our currency system itself is profoundly theoretical. The only thing that's behind the world's currencies is faith. If people lose faith, then the currency is finished. If the amount of currency that's being printed heads towards infinite, then the currency is finished. If the US defaults, then all currencies will collapse because the USD is the world's reserve currency.

Fri, 12/16/2011 - 01:46 | 1986117 Doomer
Doomer's picture

Let's say you borrow $50 million to buy $50 million in assets, using $1 million in assets you aleady have as collateral.  If the asset value drops by 2%, then it is only worth $49 million, and your $1 million in collateral is no longer yours.  If you don't have another $1 million to pledge as collateral, you have to pay back the loan, and you are broke.  What's worse is if your collateral also dropped in value; then you are really fucked.

Fri, 12/16/2011 - 02:19 | 1986158 plubans580
plubans580's picture

A simple example:

You have $100 that you want to invest, and you decide you want to invest on margin (i.e., using leverage).  So, you borrow $1000 from your broker and post your $100 as collateral for that loan. You buy $1000 of some asset from your broker using that borrowed money.  You have $1000 of assets for your $100 of capital. You are leveraged 10x or 10:1 (depending on what notation you prefer).

Assume that the asset drops in value by 10%. You decide you think it's going to drop further, so you sell it for $900.  Your broker still expects that you will pay them back the full $1000 loan, so you give them the $100 in collateral and the $900 from the sale.  You now have $0: 100% of your capital was wiped out by a 10% drop in the value of the investment.

Deflation/inflation don't have anything to do with this, except in an indirect way - the central issue is the rise and fall of asset prices.

--

The mark-to-market vs mark-to-model issue is especially relevant for bonds because of the interplay between the effects of both credit risk and interest rates on the price of bonds.

Assume that a particular company wants to raise some money and so they issue a bond.  You decide that you want to loan them $1000 and that you want to be paid 1% per year as compensation.  So you now own a 10 year bond that yields 1% per year.  

How do interest rates have an effect?

Assume that one year later - due to external circumstances - interest rates everywhere have gone up.  As a result, that same company is now issuing 10 year bonds that pay 2% per year.  If you want to sell your 1% bond, no one is going to buy it from your for $1000, since they can put that same $1000 towards a 2% bond that will pay them more over the life of the bond.  So if you want to sell it, then you will need to offer a discount so that at the sale price, the buyer will get a cash flow comparable to that of the 2% bond (http://en.wikipedia.org/wiki/Bond_valuation for details).

How does credit risk have an effect?

Assume that one year later, the company is nearing bankruptcy, and it does not look likely that they will be able to pay back the bond at all. There might still be some people willing to lend to the company, but they won't charge them 1% anymore - it will be a much higher rate.  In this case, if you want to sell you bond, you will again need to discount it heavily so that the buyer feels like they are getting a much higher interest rate.

So when does mark-to-market get applied?

If you are an active bond-trader and you never plan on holding any bonds to maturity, then you will want to value your portfolio on a mark-to-market basis since your intend to profit based on your ability to predict the price fluctuations that occur as a result of changes in interest rates and credit risk.  

If you are a hold-to-maturity, long-term investor, then you probably won't want to use mark-to-market accounting, because you don't care about the price fluctuations: all you care about is that you're going to get your $1000 back at maturity, and you're going to get your 1% per year in the meantime.  However, if your $1000 bond is trading at $300 because people think the issuer is going bankrupt (and thus won't pay back the bond), then it seems wrong to claim that you own an asset that's worth $1000. At least in this case, investors can express their frustration by selling the stock. This is why many banks are currently trading at a price-to-book value of less than one: investors don't believe that each dollar worth of assets claimed on the balance sheet is acually worth a whole dollar.

The solvency question is less complicated. If a bank owes someone money, and the bank can't pay it, they are insolvent. If they can pay, they are not insolvent. So solvency isn't really a judgement, it's more of a state of reality.

Thu, 12/15/2011 - 19:39 | 1985470 PianoRacer
PianoRacer's picture

If we've already taken personal posession of all of our capital and thus have no counterparty risk, can we still read the article?
Somebody tell me what it says. 

Thu, 12/15/2011 - 20:34 | 1985634 The Fonz
The Fonz's picture

Loosely translated it says "Put your shit in your safe".

Thu, 12/15/2011 - 21:55 | 1985801 bilejones
bilejones's picture

I too am fully diversified, some's under the mattress the rest is buried in the yard.

Thu, 12/15/2011 - 19:41 | 1985478 alien-IQ
alien-IQ's picture

ouch.

Thu, 12/15/2011 - 19:42 | 1985479 Thisson
Thisson's picture

It's amazing that it only took 3 days from the downgrade to the collapse of the entire firm.

Thu, 12/15/2011 - 19:59 | 1985543 trav7777
trav7777's picture

things happen quick...leverage is like that.

Thu, 12/15/2011 - 22:40 | 1985881 tmosley
tmosley's picture

But you'll be able to catch it before it happens, right Trav?

lol

Thu, 12/15/2011 - 23:51 | 1985981 Chicken_Little
Chicken_Little's picture

I hate to break into such a great comment area, but the US Embassy just sent me this and I have no idea what it's about. I'm a registered Ex-Pat  in Pattaya.

This message is to alert you that on Friday, December 16th, a large group-possibly as many as 1200 people-will gather in front of the U.S. Embassy on Wireless Road. The exact time of the demonstration is unknown, but most of the demonstrators are expected to arrive between 1300 and 1600 hours. Although this gathering is expected to be peaceful, if you plan to be in the vicinity, you should be mindful that any large gathering holds the possibility of risk, and that traffic around the Embassy will be impacted. It is also possible that access to the Embassy will be restricted. Demonstrations are unpredictable and can turn violent without warning. For this reason, we encourage you to monitor local media for information about possible demonstrations and to avoid the vicinity of demonstrations. Information about the demonstration may also be available on our website as well as through Facebook and Twitter.

Tyler(s), please get on this. Thx much :)
Fri, 12/16/2011 - 01:52 | 1986105 Oracle of Kypseli
Oracle of Kypseli's picture

Pataya is dangerous place to start with. Fun for middle aged men, but don't forget to use protection. My advice: Get over to Phuket and Phi Phi islands for a while.

Fri, 12/16/2011 - 03:43 | 1986224 Bringin It
Bringin It's picture

Oracle - please stop with the advice before you hit something idyllic.

Thu, 12/15/2011 - 19:45 | 1985484 JPM Hater001
JPM Hater001's picture

Somewhere in the middle there Lucifer stopped by for a quick meeting.

Sycophant comes to mind here.  "Yes John.  The Rothchilds sent me personally to tell you what a star you have become."

Thu, 12/15/2011 - 19:47 | 1985494 Cheesy Bastard
Cheesy Bastard's picture

Halloween.

Thu, 12/15/2011 - 21:06 | 1985698 DeadFred
DeadFred's picture

He took time off from trading currency?

Thu, 12/15/2011 - 19:54 | 1985496 Legolas
Legolas's picture

7 p.m.: CME's Emergency Financial Committee approves a rule change releasing members qualified by MFGI, such that those members could become qualified and guaranteed by another clearing member in order to resume trading.

Unbelievable.  Absolutely unbelievable.  Who does CME report to?

Why would they do that? 

Thu, 12/15/2011 - 23:32 | 1985948 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

CME is a corporation which is regulated by fascist parties such as the SEC.

Thu, 12/15/2011 - 19:49 | 1985503 Occams Aftershave
Occams Aftershave's picture

are we to believe that in the entire chronology, which never once includes the word 'corzine', that he was absent and not involved in any of this final death rattle?

Thu, 12/15/2011 - 19:52 | 1985512 NotApplicable
NotApplicable's picture

CME folks got his phone number, but can't remember if they called him.

*facepalms*

Thu, 12/15/2011 - 19:54 | 1985518 Infinite QE
Infinite QE's picture

its the golden rule of GS, LDL. Lets Discuss Live.

Thu, 12/15/2011 - 20:01 | 1985560 trav7777
trav7777's picture

I know people who were sent to federal prison for bribery...caught due to wiretaps.

NOBODY in this business ever puts anything in writing.

Thu, 12/15/2011 - 19:50 | 1985506 Manthong
Manthong's picture

This is all so last month... can't we just get on with the Christmas rally?

Thu, 12/15/2011 - 19:53 | 1985514 toadold
toadold's picture

Does anybody else get the feeling that Corzine not only screwed the customers but also has messed it up for his fellow predators?

Thu, 12/15/2011 - 19:59 | 1985540 Papasmurf
Papasmurf's picture

When only a few bankers remain, it not much matters who eats who last.  We are in the end game for vulter capatilsim.

Fri, 12/16/2011 - 03:45 | 1986226 Bringin It
Bringin It's picture

Who is giving you the 2 red arrows??  and why??

Thu, 12/15/2011 - 20:00 | 1985549 NotApplicable
NotApplicable's picture

I think we've gone beyond the phase of caring about anything, as it's apparently show time.

Congress Critters have passed the Enabling Act, so we're just a signature away from the official police-state.

http://apnews.myway.com//article/20111215/D9RL7AO00.html

What's funny is that this showed up not in headline, world, national, or political news, but as the last item in the business news.

Thu, 12/15/2011 - 22:35 | 1985878 nmewn
nmewn's picture

Yeah, I'm eagerly awaiting the GW admonishment for O'Bama not to sign it.

What a red herring show that'll be ;-)

Thu, 12/15/2011 - 23:56 | 1985953 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Given the Super Class' history, I would guess a false flag is coming next year.

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