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Where The "Segregated" PFG Money Is

Tyler Durden's picture


Or rather isn't. Just in case there is any confusion this morning as to where the "segregated" client cash may have vaporized to...

From: "Herb Kral" <>
Date: Tue, 22 Nov 2011 10:07:55 -0600
Subject: RE: Follow up


Dear [XXX]


All of our client funds are held at JP Morgan Chase in a segregated account. Jeffries does hold our margin money for positions.




Herb Kral, Director of Automated Trading
311 W. Monroe, Suite 1300
Chicago, IL 60606
312-775-3581 | 312-775-3095 fax


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Tue, 07/10/2012 - 07:29 | 2601457 RyanW525
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Tue, 07/10/2012 - 07:31 | 2601465 GetZeeGold
GetZeeGold's picture



Not only is it appears to be completely legal.



Tue, 07/10/2012 - 07:35 | 2601479 HoofHearted
HoofHearted's picture

Nobody could have predicted it...nobody.

Tue, 07/10/2012 - 07:38 | 2601487 Dr Benway
Dr Benway's picture

It's only funny until it happens to you.

Then it's an outrage.

Tue, 07/10/2012 - 07:40 | 2601490 SheepRevolution
SheepRevolution's picture

Jamie Dimon: " Fuck! Fuck! Fuck! Fuck! Fuck! Fuck! Fuck! Fuck! Fuck! ... *pause*... Ah what the hell, I own the President, Congress, Supreme Court and the FED anyway."

Tue, 07/10/2012 - 07:57 | 2601512 GetZeeGold
GetZeeGold's picture



He owns the magic cufflinks......why should he care about anything?


Tue, 07/10/2012 - 08:47 | 2601644 FEDbuster
Tue, 07/10/2012 - 08:54 | 2601650 Badabing
Badabing's picture

When Man Financial Global (MFGs) segregated accounts got vaporized the one similarity that smacks you in the face is the COMEX had a large delivery in PMs and not enough to deliver in physical metal.

After the dust settled all was well with the PM paper Ponzi scheme just ask Gerald Celente:

So now PFG is a victim of the vaporizer, and why I say victim, well if they stole the segregated accounts money,  the junk yard dogs owners would have sicked the dogs on them but as you will see nothing will become of this story, its already out of the lime light.

We all know that the FUCKING bankers have the money, and I bet that money was going to be used for PM delivery. Remember break the COMEX and buy physical silver? “First suggested by a ZH poster”.  If you didn’t take delivery you could settle for cash plus 30 to 50% bonus that’s some nice profits but who’s money do you use? Now the picture starts to become clear, use other people’s money! But don’t get caught because the big FUCKING banks will step in with the vacuum cleaner and vaporize it and what are you gonna say? UH, we where making big profits with OPM. A good example is if a crooked cop took a drug dealers money where’s he gonna go?

Tue, 07/10/2012 - 09:21 | 2601714 jonan
jonan's picture

jamie the maaaagic diiimon, has maaaggiiicc cuffliiiinksss

Tue, 07/10/2012 - 08:07 | 2601545 LULZBank
LULZBank's picture

It's only funny until it happens to you.

Then it's an outrage.


In this day and age, you should not have any money with any counterparty, to start with...

Tue, 07/10/2012 - 10:05 | 2601890 toady
toady's picture


If you are foolish enough to stay in this game, remember this phrase:

It's all perfectly legal.

That should be very comforting

Tue, 07/10/2012 - 08:54 | 2601663 torak
torak's picture

Shocking!  Absolutely shocking! 

Tue, 07/10/2012 - 07:36 | 2601484 ghengis86
ghengis86's picture

Segregated = Corzined

Tue, 07/10/2012 - 07:29 | 2601458 merizobeach
merizobeach's picture

All muppets must be Corzined.

Tue, 07/10/2012 - 07:32 | 2601469 GetZeeGold
GetZeeGold's picture



It's the new Wall Street trend. You steal the money then move to France.

Tue, 07/10/2012 - 08:02 | 2601528 ghengis86
ghengis86's picture

All your muppets are belong to us.

Tue, 07/10/2012 - 08:09 | 2601551 GetZeeGold
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I don't think GS is going to be happy to hear that.


Tue, 07/10/2012 - 09:33 | 2601753 Shitters_Full
Shitters_Full's picture

But PFGBest doesn't do that.  Just look at Junior's quote from six months ago about their stellar self-reporting (two thirds of the way through the article).

Tue, 07/10/2012 - 07:29 | 2601460 Croatian Patriot
Croatian Patriot's picture

Show me the money!!!!!!

Tue, 07/10/2012 - 07:43 | 2601495 SheepRevolution
Tue, 07/10/2012 - 07:30 | 2601461 Harlequin001
Harlequin001's picture

Doesn't happen when you hold physical...

Tue, 07/10/2012 - 07:30 | 2601462 i-dog
i-dog's picture

That whale is going to explode if it keeps eating client funds!

Tue, 07/10/2012 - 07:35 | 2601482 insanelysane
insanelysane's picture

The more they eat the hungrier they get.  It only stops when the Central banksters stop or more likely are stopped.

Tue, 07/10/2012 - 07:46 | 2601499 EscapeKey
EscapeKey's picture

Well thank God (Blankfein?) then that this wasn't deemed newsworthy to Marketwatch.


Tue, 07/10/2012 - 07:32 | 2601467 EscapeKey
EscapeKey's picture

Segregated... that word does not exist in newspeak.

Tue, 07/10/2012 - 07:56 | 2601513 LULZBank
LULZBank's picture

It does.

It means money being segregated from the clients/owners. Heard, its the new rage on the Wall Street!!

Tue, 07/10/2012 - 07:33 | 2601473 Peter Pan
Peter Pan's picture

Thank God the funds are with JP Morgan. For a minute I thought they might be with PFG.

Tue, 07/10/2012 - 07:34 | 2601476 Gypsyducks
Gypsyducks's picture

Aaaaaaaand it''s gone!

Tue, 07/10/2012 - 07:34 | 2601477 Meesohaawnee
Meesohaawnee's picture

well no wonder why futures are green. Bullish!

Tue, 07/10/2012 - 07:35 | 2601480 LawsofPhysics
LawsofPhysics's picture

Time to segregate a few heads from bodies.

Tue, 07/10/2012 - 07:36 | 2601483 EL INDIO
EL INDIO's picture

“Director of Automated Trading” so he’s the RoboMaster !


And JPM is the Junkyard for Printed Money, where excess money is sterilised.

Tue, 07/10/2012 - 07:36 | 2601485 Peter Pan
Peter Pan's picture

It is funny how the word brokerage is made up of the words BROKE and RAGE. I guess we were warned.

Tue, 07/10/2012 - 07:46 | 2601498 LeBalance
LeBalance's picture

It is equally funny to note that the word: Mortgage, is made of two roots Mort (Death) and Gage (Grip).  I guess we were warned.

Tue, 07/10/2012 - 09:17 | 2601707 problemfixr
problemfixr's picture

As a follow-up:  Politics, when broken down, equates to Poli (poly) meaning MANY, and Tics which describes BLOOD-SUCKING PARASITES.  I'm just sayin...

Tue, 07/10/2012 - 09:27 | 2601728 jonan
jonan's picture

(oops, dabaru posto)

Tue, 07/10/2012 - 09:26 | 2601730 jonan
jonan's picture


ba - what you say when you are a sheep

rack - a torturous device used to stretch the sheep thin

Tue, 07/10/2012 - 07:38 | 2601486 HAL 9000
HAL 9000's picture

I hope the two of you are not concerned about this.

Tue, 07/10/2012 - 07:45 | 2601496 LULZBank
LULZBank's picture

Nobody is asking the most important question: What is the boiling point of money?

Tue, 07/10/2012 - 07:52 | 2601514 LULZBank
LULZBank's picture

Gold is not money. Duh!

Tue, 07/10/2012 - 08:59 | 2601677 VelvetHog
VelvetHog's picture

Its too late to measure that to find out.  It's all been vaporized.

Tue, 07/10/2012 - 07:47 | 2601501 Debtless
Debtless's picture

JPM is the fucking mob. They need to be stopped. We need a modern day Elliot Ness. I don't see anyone fitting that description around today though.

History rhymes.

Tue, 07/10/2012 - 07:48 | 2601507 youngman
youngman's picture

These JPM´s are the new John Dillingers...except now the banks steal from the people...instead of the people stealing from the banks....

Tue, 07/10/2012 - 07:49 | 2601508 HellFish
HellFish's picture

What we need is rope and trees or at least a rifle with a scope - or at the VERY LEAST tar and feathers, nice hot tar.

Tue, 07/10/2012 - 08:05 | 2601537 francis_sawyer
francis_sawyer's picture

Holder? Holder?... Oh nevermind...

Tue, 07/10/2012 - 08:20 | 2601581 Debtless
Debtless's picture

Nevermind is right. Another bought & paid-for tool. Sickening.

Tue, 07/10/2012 - 08:12 | 2601559 j0nx
j0nx's picture

YOU, me, everyone else is Elliot Ness. Stop waiting for someone else to come riding in on a white horse to fix this problem and take steps to fix it yourself. I guarantee you that if a couple hundred thousand people got off their fat asses and stopped watching the Kardashians and marched on NYC and DC demanding an end to this shit then it would end most ricky tick. We aren't there yet and won't be until the beer and hot dogs dry up. There is no David Palmer/Elliot Ness out there who can do this alone.

Tue, 07/10/2012 - 08:24 | 2601587 Debtless
Debtless's picture

Uh, maybe you've heard of Occupy - wasn't sleeping in NY parks for 6 months found to be a bit fruitless for change? Read my avatar, I'm doing my part by not playing much of a part. We need regulators that do so unbiased. Or vigilantes. Or both.

Tue, 07/10/2012 - 09:29 | 2601741 torak
torak's picture

Afraid not.  You'd be corraled, pepper sprayed, and arrested for your efforts, hence, the multitudes flip on the 50 inch plasma screen, pop the top of a brew, and languidly indulge in brainless activity.  Don't expect the Jone's to march on DC.  Anyway, most of Main Street are net debtors -- no skin in the game.

Tue, 07/10/2012 - 07:47 | 2601502 youngman
youngman's picture

Am I seeing a trend here.......?????  Think so...but it is so obvious.....that just shows the schmaltz these guys have...or is it shwang

Tue, 07/10/2012 - 08:07 | 2601548 Cursive
Cursive's picture


Swagger.  Lots of it.

Tue, 07/10/2012 - 07:47 | 2601503 sudzee
sudzee's picture

Outright theft minus legals and fines is a very profitable business model.

Tue, 07/10/2012 - 07:48 | 2601505 Darth Silver
Darth Silver's picture

700 mf global accounts were bulk transferred to pfg 9 months ago. These poor bastards have been curbed twice in 9 months. Way to go regulators. Keep up the great work. Wtf?!

Tue, 07/10/2012 - 08:01 | 2601524 LeBalance
LeBalance's picture

oh please!  tell us Gerald got double dipped!  omfg!  :)

Gerald Celente: black belt! diplomat! nice suits!  calls those bad boys the "white shoe boys!"

invests his money with them regardless.

do not follow what a man says. follow what a man does.

Gerald, do I detect a psuedopod between your legs? :)

Tue, 07/10/2012 - 08:06 | 2601530 GetZeeGold
GetZeeGold's picture



Way to go regulators. Keep up the great work. Wtf?!


I'm sure they're totally on this.


Tue, 07/10/2012 - 07:48 | 2601509 grey7beard
grey7beard's picture

One of the guys in a group I read has lost his account in PFG.  In a irony, he's one of the political class who continually blames all the countries problems on non-whites, the poor and the old.  I've got some news for that class of joker, it's rich, well connected white folks who are sticking up America's ass (Obama being a notable exceptiong, but there is a whitey in teh wood pile there also). 

Tue, 07/10/2012 - 08:04 | 2601534 LeBalance
LeBalance's picture

whiteness has nothing to do with skin color and everything to do with the color of your LIES.

Bummer's got no SOUL and his LIES are whiter than a Bush.

He's whiter than I am by a long long way.

Tue, 07/10/2012 - 07:49 | 2601511 Debtless
Debtless's picture

If all of these insolvent bankster fucks would off themselves all at once - we could THEN move forward.

One can only hope this assclown starts a suicide trend.

Tue, 07/10/2012 - 07:57 | 2601519 GeneMarchbanks
GeneMarchbanks's picture

One can only hope this assclown starts a suicide trend.

Unlikely. You'll be writing similar comments for years to come.

Tue, 07/10/2012 - 08:06 | 2601541 Van Halen
Van Halen's picture

WE should be helping these asswagons start a 'suicide' trend.

Materials needed? Ten feet of rope and a few lampposts.

Tue, 07/10/2012 - 08:45 | 2601639 FEDbuster
FEDbuster's picture

Public humiliation, then they kill themselves:

Corzine should have done this at his Congressional hearing.

Tue, 07/10/2012 - 08:06 | 2601542 Mister Ponzi
Mister Ponzi's picture

If he writes similar comments for years to come, then clearly a trend will be established, won't it?

Tue, 07/10/2012 - 08:00 | 2601522 Downtoolong
Downtoolong's picture

Herb Kral, Director of Automated Trading

I've said it before and I'll say it again. It's going to be some show when the only ones left in the market are HFT traders playing with themselves. And just as I predicted, it's pretty ugly, and not nearly as much fun to watch as I thought it might be.

Tue, 07/10/2012 - 08:05 | 2601536 EL INDIO
EL INDIO's picture

At that point even the bots will realise THE ONLY WAY TO WIN IS NOT TO PLAY

Tue, 07/10/2012 - 08:02 | 2601526 francis_sawyer
francis_sawyer's picture

 [insert rage here]...and tits...

Tue, 07/10/2012 - 08:04 | 2601533 Van Halen
Van Halen's picture

Everyone relax. Very shortly, Congress will get wind of this and conduct an inves<chuckle>igation. There won't be any <giggle> fooling around. Our <choke - snicker> trusted representatives will get to the bottom of this <ha!> and justice <ha ha!> will be

<ha! ha! Ha! HA!>



Tue, 07/10/2012 - 08:06 | 2601540 LeBalance
LeBalance's picture

looks like we have another cured addict.  you are free of the Matrix young one.  pass on.  /bless you/

Tue, 07/10/2012 - 08:05 | 2601538 Colonel
Colonel's picture

"The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks." Lord Acton

Tue, 07/10/2012 - 08:05 | 2601539 LongSoupLine
LongSoupLine's picture

I love that Jeffries is holding the margin "money".   How can an institution that's under their own massive margin call hold other margin call monies?

Tue, 07/10/2012 - 08:09 | 2601552 azusgm
azusgm's picture

How much is Eric Holder's cut for refusing to investigate and prosecute Dimon and his minions?

This is getting nauseating.

Tue, 07/10/2012 - 08:13 | 2601563 GetZeeGold
GetZeeGold's picture



John Roberts could probably tell you.


Tue, 07/10/2012 - 08:11 | 2601557 fredquimby
fredquimby's picture

Did anyone see the assassin leaving the PFG building in chicago??

Black gloves, an M16 and everything!!,+Chicago,+IL,+Unit...



Tue, 07/10/2012 - 08:12 | 2601558 scatterbrains
scatterbrains's picture

I can't wait to tune in to another Sen. Shelby led senate hearing so I can listen to his coached purposeful  monotone s l o w      sentences                                         designed                                                                         make                                    you


want                   to                                     change             the                                                                                                       .                             



Tue, 07/10/2012 - 08:28 | 2601567 sansnobel
sansnobel's picture

God these people no fuckin morals or soul.  I think they really do believe it is their divine right to pilage and plunder.  I never thought I would be party to a lynch mob in my lifetime, but it's starting to look like there's gonna be some good ole fashion justice done here in the US before long.  Actually I can't wait for the bank runs and the look of outrage on peoples faces when they finally get pissed enough to take all their money out of "banks" and they get that look of utter desperation knowing that they and their entire generation have been had and their money "isn't there". 

Tue, 07/10/2012 - 09:14 | 2601700 torak
torak's picture

Unfortunately, when you or any of the other "little people" get fed up and decide to "step out of line", you'll find that summary justice is dole out expediently. 

Tue, 07/10/2012 - 08:23 | 2601585 lizzy36
lizzy36's picture

Congress doesn't hold hearing for losses less than $1B.

Or for personal sponsorship worth less than $1m.

Election year #booyah

Tue, 07/10/2012 - 08:25 | 2601590 curucus
curucus's picture

... No complaining, the money was really "segregated".

from Oxford Dictionary: Segregation=the action or state of setting someone or something apart from others.

The cure = IMPALE THEM ALL !!!!

Tue, 07/10/2012 - 08:25 | 2601591 yogibear
yogibear's picture

PFGBest had 200 million a few months ago and all the money started disappearing months ago.

Anyone get the trend here? The US government and it's regulators look the other way with regards to stealing and criminal behavior by the financial institutions.

If you head a financial institution just siphon funds to offshore accounts (not reachable by US ), cook the books and then bankrupt the firm.

Corzine didn't go to jail. The regulators, Obama and the rest will cover up the embarrassment!

Lesson, nobody is being prosecuted.  Carry on bankster criminals!!!



Tue, 07/10/2012 - 08:27 | 2601592 firstdivision
firstdivision's picture

I thought segregation was abolished in 1954

Tue, 07/10/2012 - 08:55 | 2601660 VelvetHog
VelvetHog's picture

The real message here is that irrespective of where else you may stash your cash it is safest under your matress.  Long Sealy.

Tue, 07/10/2012 - 09:03 | 2601684 torak
torak's picture

Worked once.  Might work twice.  Hells Bells...JPM just found found a way to make a trillion without anyone going to jail!!! Hallelujah.  Doing God's Work sure brings home the bacon!!!

Burn the Futures Markets to the ground for fun and profit. 

Quick -- Call SIPC

Tue, 07/10/2012 - 09:29 | 2601742 Don Diego
Don Diego's picture

you can't segregate money, that would be racist

Tue, 07/10/2012 - 09:31 | 2601747 icanhasbailout
icanhasbailout's picture

Automated Trading, eh? I'm guessing that this is not trading for the clients' benefit

Tue, 07/10/2012 - 10:34 | 2601998 Lofty
Lofty's picture

Jamie 'Marvelo' Dimon....And now for my next trick

Tue, 07/10/2012 - 12:26 | 2602502 Jumbotron
Jumbotron's picture

J.P Morgan is just gearing up for the next wave of Food Stamp recipients to come online over the next 12 months.

Tue, 07/10/2012 - 16:00 | 2603358 mkhs
mkhs's picture

JP Morgan.  They be any relation to Henry Morgan?

Tue, 07/10/2012 - 16:10 | 2603392 LightWalker
LightWalker's picture

My avatar is Jamie Dirtball telling congress: "I don't know where the money is"

Fri, 07/27/2012 - 00:51 | 2655573 MeelionDollerBogus
MeelionDollerBogus's picture

segregating customer funds

building shareholder value

if only the market would just "realize" it

Jamie Dimon ... mafia piece of shit.

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