New York Fed Statement On MF Global, Or How 22 Primary Dealers Became 21 Primary Dealers

Tyler Durden's picture

Statement Regarding MF Global Inc.

The Federal Reserve Bank of New York has informed MF Global Inc. that it has been suspended from conducting new business with the New York Fed.  This suspension will continue until MF Global establishes, to the satisfaction of the New York Fed, that MF Global is fully capable of discharging the responsibilities set out in the New York Fed’s policy, “Administration of Relationships with Primary Dealers,” or until the New York Fed decides to terminate MF Global’s status as a primary dealer.

The New York Fed’s policies relating to its primary dealers may be found online at

Jonathan Freed
(212) 720-6449

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Irish66's picture

We are going to have to bail out this risk?

jmcadg's picture

On your own bitchez!

Hephasteus's picture

21 crack dealers left. Geihtners gonna tweek out.

Zero Debt's picture

There is no honor among thieves.

maxmad's picture

Can't they just rub some Corzine on it?

GeneMarchbanks's picture

Corzine has side-effects, some of which will send you running to the John.

ziggy59's picture

No new business.. they can continue the same old business..

maxmad's picture

Explain this to me-how can a primary dealer-with direct access to the printing presses fail?  did someone do something bad?

westboundnup's picture

Your question assumes there's a logical explanation.  Several months ago I gave up on trying to find logic in the global financial system.  Dow Futures are green BTW.

maxmad's picture

I am assuming your logic is kidding right?  Triple digit losses in the dow futures... LOL

GeneMarchbanks's picture

Only goes to show how big of a fuck-up Corzine is.

Bobbyrib's picture

"Explain this to me-how can a primary dealer-with direct access to the printing presses fail?  did someone do something bad?"


As a resident of NJ, I will answer this for you. The board of directors fucked up when they appointed Jon Corzine as CEO.

Cursive's picture


I guess MF Global wasn't TBTF?

blueridgeviews's picture

What happened? MF GLobal refuse to continue with the charade? Or does the NY Fed have another bank in mind to fill MF's shoes. There is ONE thing I know with certainty, the NY Fed is as corrupt as the SEC.

bania's picture

Terminated status, FTMFL...

(for the MF loss)

Hephasteus's picture

Link leads to verisign infrastructure and operations.

catacl1sm's picture

FYI, I enjoy your chartology and BOTD, but I admit that I'm too stupid to fully understand the implications of your charts. Some additional explanations would be nice. :)

maxmad's picture

this should be good for an addition 20 handle drop in the sp....


sing with 22 corrupt bankers on the wall, if one of them should happen to fall 21 corrupt bankers on the wall....

MiningJunkie's picture

Who gives a shit? Some futures-op goes belly - no reason to resume the SELL EVERYTHING mantra that has bankrupted you short players in the past month lol...

Leopold B. Scotch's picture

Nothing like bravely going long the endless (financed by the truly astute savers / producers) bailout, and then talking shit about it here.

maxmad's picture

thats right buy, hold and pray, has worked very well!

Citxmech's picture


Since selling my market positions, I'm up more than 100%. Ain't PMs grand?

Irish66's picture

MF Global is a leader by volume of executed or cleared transactions in markets around the world. Our heritage in the global markets includes nearly 230 years of brokerage experience and our role as a founding member of many of the futures exchanges.

Rankings on Select Exchanges by Trade Volume(1)
Fiscal Year 2011

North America Europe Asia Pacific COMEX  #1 Liffe #4 SFE #1 NYMEX #1 ICE Futures #3 SGX #4 CME #2 Eurex #14   CBOT #3    

(1)Rankings for the 12 months ended March 31, 2011. Click herefor underlying detail.

Racer's picture

There were ten green bottles sitting on a wall street...

and if one of them were to accidentally fail..

there will be nine green bottles sitting on a wall street

and if....



and there were two green bottles sitting on a wall street

and if one of them were to accidentally fail,

there will be one Gonemad Sucker sitting all on it own


Piranhanoia's picture

Getting the Hydra down to only one head is going to make it a lot easier to make cat food.

Everybodys All American's picture

It's great we now have Dodd-Frank in place to unwind all of these problem companies like MF Global. /sarcoff

ZippyBananaPants's picture

We deliver trading and hedging solutions across all assets in markets around the world. MF Global is a leading broker of commodities and listed derivatives and one of 22 primary dealers authorized to trade U.S. government securities.


Unparalleled global network meets roll-up-your-
sleeves common sense. That’s MF Global.
And it’s why clients turn to us to capture new
opportunities in today’s rapidly changing
financial markets.

Discover the power of Strategy Runner. MF Global’s newest, most advanced trading platforms and auto-execute solutions.

Solid infrastructure. Trusted relationships. That’s what MF Global delivers. And that’s why clients rely on us to execute, clear and
settle their transactions across asset classes and around the world.


Unique insights, passion for what we do.
That’s MF Global. And it’s how we keep
clients on top of the world markets.


Matching client needs with deep knowledge.
It’s our calling, and it’s why clients rely on
MF Global to help them seize opportunities
in fast-moving markets.

Indispensable, well-timed insight. Forward-thinking, unwavering vision. Deeply rooted passion for the markets. At MF Global, our relentless pursuit of market opportunity separates us from the pack and binds us in a common purpose—to help clients find an edge in today’s fast-paced, ever-evolving markets.

Explore stories of how the employees of MF Global are delivering on this commitment today, with more stories to come tomorrow.

Bringing together superior market access, well-timed
market insights and powerful trading and hedging
solutions. It’s our passion. And it’s why clients rely on
MF Global to sharpen their edge in the world’s ever-
changing markets.


Yeah, right.

firstdivision's picture

Does Corzine have his seat belt on for this ride?

NuYawkFrankie's picture



A brok-er-age called MoFo Global,

Had business all round like a mogul

'til Capo Corzine

Appeared on the scence,

Now it's bankrupt and not even Local

rittter's picture

It is a perfect set up.  This is how the GS, JPM, etc. are going to get out of their bad foreign debt exposure and maybe other crap.  The big boys unload the crap to the little guys and the little guys, for a price, flushes the toilet (bankruptcy). 

Josh Randall's picture

22 Letters in the Hebrew Alphabet -- and 22 Primary Dealers to the FED -- hmmmmmmm

Lux Fiat's picture

This may just be a case of Corzine making some bad decisions and prop trading run amok.   However, the hardening cynic in me wonders if the Fed/Treasury were using the primary dealers to help out their buddies in Europe.  If so, MF may not be the only PD stuffed with Euro trash.  Guess time will tell. 

spanish inquisition's picture

What a great opportunity for the global elite to prove themselves right. Hire on Summers and Krugman and float $20B in MFG 2% bonds. Confidence will be restored in the company stock, hiring will ensue and all will be well.... a perfect microcosm for the world we live in today!

Edit: Remember this is just a confidence issue....

Ned Zeppelin's picture

MF Global: "Turn those machines back on, bitchez!"

First casualty, canary in coal mine, or random implosion?

Hard1's picture

Another multibillion failure courtesy of your Ex-Goldman/ex-government-official friends.  Corzine, Timmey, Paulson should be the poster childs of idiocy and corruption in the USA.  Lloyd Blankfein for president anyone?

Kobe Beef's picture

I thought Lloyd already was President. You mean the duffer in the White House is actually calling the shots? Now I'm really scared...

HedgeOn's picture

Ahh, another Goldmanite doing "God's work".  I guess this time it wasn't tbtf.

Piranhanoia's picture

Until the Fud changes it's policy in,  3...2...1...

Marta45's picture

The 1962 Mets published a 40–120 history, one of the toughest in major-league history, and the most failures in one period since 1899. In 1966, the Mets once side stepped Area of Famer Reggie Fitzgibbons in the beginner set up, instead choosing Bob Chilcott, who never performed in the majors.