The gov't has enough horse power in the probe to ensure that nothing will see the light of day and truth will be buried...maybe we'll see some lying report in a few years.
Quote:
The “around the clock” probe of MF Global’s cash movements is being conducted by the U.S. Justice Department, the Commodity Futures Trading Commission, the Securities and Exchange Commission and the trustee’s staff in cooperation with the Securities Investor Protection Corp., Giddens said on his website last week.
i don't know about that. What I do know is that the CME is not taking this lightly. They have a fundamental "trust" that they desperately need to maintain, in order to do day to day business.
They will pound MF and Corzine if something Illegal happened.
It's about survival for the big fish at this point.
_________________ “Debt and deficits are not inventions of ideology. They are facts of arithmetic.”
I was an MF Global client for years. It originated from several years back, when I trading futures part-time, and the former boutique brokerage I used, Lind-Waldock, was taken over by global commodities broker Refco. Refco blew up some trades and went bankrupt. Then it was taken over by MF Global, which as we now know had its own way of blowing things up.
Last week, my MF Global account was locked up all week. Couldn't transfer money out. Couldn't cover and exit trades. And as we now know, I wouldn't have gotten money out even if I tried. What's the bottom line this morning? It's still unclear, but as far as I can tell 75% of the money is missing from my transferred account -- allegedly locked up with the rest of the funds in the bankruptcy at MF Global Trustees.
Last night, I and thousands of other MF Global customers were trying to figure out what was going to happen with our accounts and money. It became known on late Friday that another futures brokerage was going to take over the accounts. Last night, I was told that the accounts would be transferred and that we could begin exiting trades and squaring positions.
We were told last night we'd been transferred to R.J. O'Brien. The accounts were being taken over but there were scary notices on the R.J. O'Brien Website, which told us a few things:
1) Not all of the equity and cash was being transferred, only enough to cover bare minimum margin requirements on positions.
2) Everybody would be getting mandatory margin calls today, because not all the cash was transferred.
3) There were no answers about where the money went or how to get it back.
So, as of this morning, the bulk of MF Global customer accounts were transferred to Chicago-based futures brokerage R.J. O'Brien, but, according to the Chicago Mercantile Exchange and R.J. O'Brien Websites, customers only received enough equity to cover the active trades in their accounts. The rest of the money is being held with the MF Global Trustees as part of the bankruptcy process. The company is also being investigated for what looks to be hundreds of millions of dollars missing from segregated customer accounts.
You still cannot transfer any money out, even the equity that transferred to R.J. O'Brien.
And check this out: If your account was in 100% cash, zero money was transferred. It's all stuck with the MF Global Trustees, to await a feeding frenzy of lawyers, bankers, and general legal mayhem resulting from MF Global's bankruptcy.
Here's how it looked to me, an MF Global customer: Overnight, my account was transferred with one active trade (so far still profitable) -- but the account is missing approximately 75% of the cash or equity. The reason for this, as explained by the R.J. O'Brien Website, is that an "agreement" between MF Global Trustees and the CME was such that only enough cash to cover the live trades was transferred.
As I mentioned, every single MF Global customer with a live trade is getting a margin call today.
_________________ “Debt and deficits are not inventions of ideology. They are facts of arithmetic.”
– Paul Martin
bdc63 Schumpeter Reincarnate
Joined: 16 Feb 2007
Posts: 4392
Location: Maryland
Anybody else watching our future Teasury Secretary testisfying on the hill? Political theater at its best.
So far my takeaways are that he was "stunned" at the news of the missing money and is "sorry," but he was only at the firm for 19 months and didn't really understand the business all that well. But he never "intentionally" did anything to violate rules. And when asked if he would give up his own fortune to make some of the victims whole he said no. He also believes that "even at this late hour the funds will be recovered".
I don't understand why no one is asking if he thinks someone should go to jail over this ... like, maybe him ...
_________________ "Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan "Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson “Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912
dreamer Demolition Man
Joined: 09 Aug 2007
Posts: 2101
Location: Northern California
_________________ "Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan "Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson “Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912
"Federal authorities are struggling to find evidence to support a criminal case stemming from the collapse of MF Global, even after a federal grand jury in Chicago has issued subpoenas."
REALLY?????
Quote:
Investigators, unable to find a smoking gun amid thousands of e-mails and documents, increasingly suspect that chaos and poor risk control systems prompted the disappearance of more than $1 billion in customer money, according to several people involved in the case.
Billion dollars leaves no vapor trail?????
Quote:
Such a case would most likely center on the firm’s failure to safeguard client money, a cardinal sin in the world of futures firms. The penalty for improperly dipping into customer money is a roughly $140,000 fine, equal to about a thousandth of the overall shortfall that clients are enduring.
140k to steal a billion and a half ?????
_________________ “Debt and deficits are not inventions of ideology. They are facts of arithmetic.”
– Paul Martin
bdc63 Schumpeter Reincarnate
Joined: 16 Feb 2007
Posts: 4392
Location: Maryland
The only way we're ever going to see Corzine in an orange jumpsuit is if we photoshop him into one
_________________ "Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan "Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson “Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912
bdc63 Schumpeter Reincarnate
Joined: 16 Feb 2007
Posts: 4392
Location: Maryland
_________________ "Socialism only works in two places: Heaven where they don't need it and h*ll where they already have it." -- Ronald Reagan "Everybody, sooner or later, sits down to a banquet of consequences." -- Robert Louis Stevenson “Gold is money. Everything else is credit.” -J.P. Morgan, testifying to Congress in 1912
dreamer Demolition Man
Joined: 09 Aug 2007
Posts: 2101
Location: Northern California
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