UPDATE 11/4/11 - Corzine Resigns - announced on CNBC this morning. (Of course he is resigning, he did the job he was there to do... he may have let Goldman Sachs do the money grab last Friday Oct. 28th. before filing bankruptcy)
UPDATE 11/1/11 10 PM est. - Unfrickin believable and Bizzare! - Judge Gives MF Global 8 million to stay in business until Nov. 14th!
UPDATE 11/2/11 - NOT HUNDRED OF MILLIONS STOLEN FROM CLIENTS BUT DOUBLE THAT NOW 1.5 BILLION! Zerohedge has the latest figure!
Yet a Judge gave them money to stay in business?! See article linked above. Corruption to the core!
UPDATE OF ARTICLE AT BOTTOM ON 11/2/11
Below is research on MF Global, who they are, what they did and who they advised, who the board of directors are and what their rankings on the exchanges of trades are and their awards for 2011 and last but not least "How they protect their clients money"!
**Read at bottom - Nutshelling MF Global Collapse by Anne Barnhardt
This is why there is an Occupy Wall Street happening right now! It is the fact that Wall Street has stolen Billions/Trillions from their customers. They hide what they do, regulators are in their pockets and look the other way (like Madoff, Enron).
Zerohedge has the information/article, it has been discovered MF Global literally stole - on purpose/knowingly, hundreds of millions of dollars from it's clients!
Jon Corzine obviously thought it was his right since he was a Goldman Sach's CEO and thought he could do anything he wanted and take whosoever money he wanted for his firm.
Federal regulators have discovered that hundreds of millions of dollars in customer money have gone missing from MF Global in recent days, prompting an investigation into the company’s operations as it filed for bankruptcy on Monday, according to several people briefed on the matter.
The revelation of the missing money scuttled an 11th hour deal for MF Global to sell a major part of itself to a rival brokerage firm. MF Global, the powerhouse commodities brokerage run by Jon S. Corzine, had staked its survival on completing the deal.
What began as nearly $1 billion missing had dropped to less than $700 million by late Monday. It is unclear where the money went, and some money is expected to trickle in over the coming days as the firm sorts through the bankruptcy process, the people said.I want to see Jon Corzine ARRESTED TODAY! I won't hold my breath though, after all it is hundreds of millions of dollars, compared to some regular person committing fraud for a few dollars, who would be arrested immediately!
But regulators are examining whether MF Global diverted some customer money to support its own trades as the firm teetered on the brink of collapse. If that was the case, it could violate a fundamental tenet of Wall Street regulation: Customers’ money must be kept separate from company money.
ANYONE WHO HAS MONEY IN A WALL STREET FIRM... LOOK AND LEARN AND DON'T LET THIS HAPPEN TO YOU! TAKE STEPS TO PROTECT YOURSELF AND YOUR MONEY! SEE WHAT WALL STREET IS DOING - STEALING OUT RIGHT FROM EVERYONE TO PROTECT THEMSELVES!
Here is MF Global's website
Everything below is from MF Global's website:
This is what is on their home page, website page right now:
Notice regarding CME, NYMEX and ICE Action
Due to MF Global Holdings Ltd. and its finance subsidiary, MF Global Finance USA Inc., filing for Chapter 11 Bankruptcy Petition, the CME Group, NYMEX and ICE are accepting "liquidation only" orders from MF Global clients, and have restricted electronic access to their markets.
This means that you may place offsetting orders for current open positions at MF Global, but may not place any new orders. Performance of your trades is guaranteed by exchange clearinghouses
This is who they say they are too.... How they HELP their clients:
MF Global is a broker-dealer dedicated to helping
clients discover and capitalize on market opportunities.
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.Market information and analysis play a critical role in the G-20’s assessments. Fred Demler, MF Global’s head of commodities, was recently invited by the G-20’s Commodities Markets Intelligence Committee to brief them on the state of the commodities markets and the role of these markets in the ongoing recovery from the global recession of 2008-2009.
WOW - MF Global executive was invited to the G20 meetings and briefed the G20 on the markets!
For example, Jane Ding-Fincham, MF Global’s head of Far East Metals and Commodities helps companies formulate strategies for everything from complex pre-trade analytics to executions in a diverse assortment of commodities markets. Jane has travelled extensively to the Asia Pacific region, particularly Hong Kong and China, where she has visited remote smelters and hosted hedge workshops with top producers, tube processors and merchants. Covering topics such as trading strategies and hedge risk controls, her workshops are attended by traders, portfolio managers, corporate executives and government officials representing China’s major commodities users.
MF Global Australia Limited
225 George Street
Sydney NSW 2000
Fax: +61 2 9247 3765
MF Global Canada Co.800 Place Victoria
Suite 4110, PO Box 313
Montréal QC H4Z 1G8
Tel: +1 514-866-1000
Fax: +1 514-866-4146
MF Global Canada Co.123 Front Street West
Toronto ON M5J 2M2
Tel: +1 416 862 7000
Fax: +1 416 862 0576
MF Global Singapore Pte. Limited, 17/F, Shanghai World Financial Centre
|Jon S. Corzine|
Chairman and Chief Executive Officer
Jon S. Corzine is chairman and chief executive officer of MF Global Holdings Ltd. Mr. Corzine, who joined the firm in March 2010, brings over three decades of leadership and expertise to MF Global. He most recently served as governor of the State of New Jersey from 2006 to 2010, and, in the United ... More >>
|David P. Bolger|
David Bolger is an independent member of MF Global’s board of directors. Mr. Bolger was chief operating officer of Chicago 2016, a not-for-profit entity that sought to bring the 2016 Olympic and Paralympic Games to Chicago. From 2003 to 2008, he served as executive vice president and chief financial... More >>
|Eileen S. Fusco|
Eileen Fusco is an attorney and CPA with twenty five plus years of experience in financial services, both as an executive in private industry and as a professional services advisor. She was most recently a senior partner of Financial Services for Deloitte & Touche and she is a financial expert for ... More >>
David Gelber is an independent member of MF Global’s board of directors and Chairman of the Compensation Committee. Mr. Gelber was director and chief operating officer of ICAP plc, the world’s largest inter-dealer money broker, from 1994 until retirement in 2005. Prior to ICAP, he held a variety of ... More >>
|Martin J.G. Glynn|
Martin Glynn is an independent member MF Global’s board of directors. Mr. Glynn was chief executive officer of HSBC Bank USA from 2003 to 2006 and chairman of HSBC Bank Canada from 2004 to 2006. From 1999 to 2003, Mr. Glynn served as chief executive officer of HSBC Bank Canada in Vancouver, and he w... More >>
|Edward L. Goldberg|
Mr. Goldberg is a member of our board of directors. Mr. Goldberg is the Managing Member and founder of Longview Investments, LLC, a family-office based investment company. Mr. Goldberg retired from Merrill Lynch after over 40 years of dedicated service to the firm. Prior to retiring, from 2000 to 20... More >>
|David I. Schamis|
David Schamis is a managing director at J.C. Flowers & Co. LLC, a private equity firm which invests in financial services companies. Mr. Schamis has been employed by J.C. Flowers & Co. and its affiliates since May 2000. Prior to joining the firm Mr. Schamis was in the financial institutions inves... More >>
|Robert S. Sloan|
Robert Sloan is the managing partner of S3, a company which he founded that provides treasury and liability management services to hedge funds. He was previously managing director at Credit Suisse First Boston, chairman of the CSFB/Tremont Hedge Fund Index Co, co-head of OTC derivatives marketing f... More >>
Rankings on Select Exchanges by Trade Volume(1)
Fiscal Year 2011
|COMEX #1||Liffe #4||SFE #1|
|NYMEX #1||ICE Futures #3||SGX #4|
|CME #2||Eurex #14|
The protection of its customers’ funds is MF Global’s paramount concern. In this regard, the key components of the futures and securities regulatory regimes with which MF Global must comply are risk-based margining, capital and the segregation of customer funds.
To reduce the risk of loss or default, exchanges and clearing firms set customer margin high enough to assure that the will be sufficient net equity available in a customer’s account for most anticipated price movements. Margin requirements for customers at most exchanges are computed in accordance with the so-called Standard Portfolio Analysis of Risk (SPAN) algorithm. This takes into account historical and implied price volatilities as well as current and anticipated market conditions, including worst case scenarios. Although margin is not the only means for assuring contract performance, it represents a primary safeguard. MF Global maintains an aggressive risk management program and, if it deems necessary, will require a customer to post margin in excess of the minimum customer margin required by an exchange.
As an FCM and broker-dealer, MF Global is subject to the greater of the CFTC or SEC capital requirements. Specifically, SEC’s Uniform Net Capital Rule ("Rule 15c3-1"), requires a broker-dealer that is also registered as futures commission merchant to maintain adjusted net capital equal to or above the greater of its requirement under paragraph (a)(1)(ii) of Rule 15c3-1, or the aggregate of 8% of customer and non customer maintenance margin requirements. Rule 15c3-1 protects clients by requiring MF Global to maintain a positive balance sheet and to meet certain Risk-Based Margining
capital-to-equity ratios in order to continue operating. Under this rule, the SEC and self-regulatory organizations (SRO) must be kept informed of MF Global’s net worth and could take actions to protect clients if the firm faced a substantial drop in its net worth. The rule also prevents MF Global from paying dividends to its shareholders or making payments to affiliates in any way that would rapidly and negatively affect the firm’s net worth.
(a) Capital Charge. Capital charges at broker-dealers are determined in a conservative manner. As a general matter, they are determined using (i) U.S. generally accepted accounting principles, with some variations specific to broker-dealers; and (ii) then imposing further reductions to net equity pursuant to a "haircut" method, pursuant to which the market value of assets owned by a broker-dealer is discounted for purposes of determining regulatory capital. Non-financial and illiquid assets are treated as worthless for purposes of regulatory capital compliance.
(b) Capital Withdrawals. The Net Capital Rule imposes substantial limitations on MF Global’s ability to withdraw its capital to pay dividends or otherwise in ways that might benefit its shareholders or affiliates at the expense of its customers or other creditors. MF Global would be required to notify the SEC if any such withdrawal (either alone or aggregated with all withdrawals over the previous 30 days) exceeds certain specified percentages of the firm’s excess net capital (20% to 30%, depending on the circumstances). MF Global would be required to obtain the SEC’s approval before any withdrawal that would leave MF Global with net capital of less than 25% of its total haircuts taken on its proprietary positions.
Probably the cardinal safeguard of both futures and securities customers’ funds required by the relevant provisions of the Commodity Exchange Act, the Securities Exchange Act of 1934 and the rules and regulations of the CFTC and the SEC is that they be segregated from the funds of the FCM/broker-dealer and may not be used to meet any obligations of the FCM/broker-dealer. A brief description of these provisions is set forth below.
For All Futures Customers of a U.S. FCM Trading U.S. Futures or Options:
Section 4d(a)2 of the Commodity Exchange Act provides that a U.S. FCM must keep all money, securities and property of its customers used to margin their futures or options trades on U.S. exchanges and all monies accruing to its customers as a result of such trades segregated from the funds of the FCM. CFTC Regulations 1.20 to 1.30 provide specific requirements for the handling of customer funds.
For U.S. Futures Customers of a U.S. FCM Trading Non-U.S. (Foreign) Futures or Options:
CFTC Rule 30.7(a) provides that a U.S. FCM must maintain in a separate account or accounts money, securities or property in an amount at least sufficient to cover or satisfy all of its current obligations to U.S. customers trading foreign futures or options. This formulation allows an FCM to employ a risk-based analysis in determining the secured amount required to be set aside. For this purpose, MF Global employs a method that is permitted by the CFTC. The account(s) must be denominated as the foreign futures or foreign options secured amount and may not be commingled with the money, securities or property of the FCM nor be used to secure or guarantee the obligations of the FCM.
Segregation of Customer Funds
Futures For Non-U.S. Futures Customers of a U.S. FCM Trading Non-U.S. (Foreign) Futures or Options:
Although CFTC Rule 30.7(a) does not require that money, securities or property of non-U.S. customers trading non-U.S. futures or options be held in separate secured amount account(s), CFTC Rule 30.7(b) permits a U.S. FCM to do so. At this time, MF Global Inc. does maintain funds of its foreign customers trading foreign futures or options in a separate secured amount account in the same manner and employing the same risk-based analysis used for U.S. customers. Such funds are segregated from the funds of the FCM and may not be used to secure or guarantee the obligations of the FCM.
For All Securities Customers of a U.S. broker-dealer
The SEC’s Customer Protection Rule. Rule 15c3-3 (the "Customer Protection Rule") of the Securities Exchange Act of 1934 Act ("1934 Act") is the SEC’s customer protection rule which details the procedures that a broker-dealer must observe to protect any of its customers’ assets that the broker-dealer holds. In general, the Rule prohibits broker-dealers from using customer assets as working capital by ensuring that the funds that the broker-dealer holds as a result of its customer business are used only to finance customer liabilities and not to finance its proprietary positions. There are two main principles of customer asset protection: (1) possession and control of customer securities by the broker-dealer, and (2) the maintenance of a required deposit in a special reserve bank account.
(a) Possession and Control of SecuritiesUnder the Rule, a broker-dealer must promptly obtain and thereafter maintain physical possession or control of all customer fully-paid and "excess margin securities." The determination of the specific securities that are required to be in a broker-dealer’s possession or control must be made daily as of the preceding day.
(b) Special Reserve Bank AccountUnder Rule 15c3-3, broker-dealers are required to deposit cash or "qualified securities" (e.g., a security issued by the United States, or a security in which the principal and interest are guaranteed by the United States) with a bank (or banks) in a "Special Reserve Bank Account for the Exclusive Benefit of Customers" (the "reserve account"). The reserve account is required to be separate from any other bank account of the broker-dealer. Under the Rule, the broker-dealer must perform a weekly calculation in accordance with the formula set out by the Rule (the "reserve formula") and deposit cash or qualified securities equal to the amount required under the reserve formula.
MF Global must meet extensive reporting requirements that allow clients and regulators to monitor its financial position. MF Global must provide clients with audited financial information annually and with unaudited information semi-annually. Regulators receive these reports as well, plus monthly FOCUS (Financial and Operational Combined Uniform Single) reports that provide a capsule view of MF Global’s financial position. These reports include an overview of the firm’s net capital, monthly net profit and loss, various financial statements, a net capital computation and a computation of the firm’s special reserve bank accounts. Since the firm is required to maintain adequate net capital at all times, regulators must be able to obtain information on MF Global’s capital position on a daily basis.
Reporting Requirements The Securities Investor Protection Corporation ("SIPC") is a non-profit membership corporation created pursuant to the Securities Investor Protection Act of 1970. SIPC has two primary purposes: (i) establish and administer procedures for the liquidation of failed broker-dealers that are SIPC members; and (ii) to provide limited financial protection, to be paid out of SIPC’s funds, to securities customers of such failed broker-dealers.
In the event of a liquidation of a broker-dealer, all customer property held by the broker-dealer for securities transactions is returned to the customers of the broker-dealer on a pro rata basis to the extent of each customer’s net equity claim against the broker-dealer. To the extent that this distribution does not satisfy a customer’s claim, the Securities Investor Protection Corporation ("SIPC") will provide insurance coverage for customers with unsatisfied claims in an amount up to $500,000, subject to a limit of $250,000 for a claim for cash.
MF Global Inc. holds customer segregated funds not required to be deposited with a U.S. or foreign clearing organization to margin open positions in one or more banks whose accounts are insured by the Federal Deposit Insurance Corporation (FDIC). Each account is properly designated as a "customer omnibus account." In the event a bank in which MF Global maintains a customer omnibus account fails, FDIC rules provide that each customer whose funds are held in such an account is entitled to insurance in an amount up to $250,000 (less any other deposits the customer may have at that bank). 12 CFR § 330.5.
Please be aware that this description of various legal requirements is for general informational purposes only and is not intended as legal advice from MF Global. The rules governing futures and securities trading and the treatment of customer funds are complex and customers should always consult their own legal counsel in such matters. SIPC
The people of MF Global need to be ARRESTED TODAY! When someone (regular person) steals or commits fraud (even $10) from a bank they are arrested and put in jail immediately! This is a Wall Street bank and former Goldman Sachs CEO - Jon Corzine who has stolen regular people's money!
BTW- The Today show came on 11 minutes ago and they are not mentioning a single word about MF Global, it is all about smut stuff and who is getting a divorce etc. I have checked all the MSM channels, event the all news cables channels, none of them are discussing this bankruptcy, it is all about Cain and sexual harassment charges. They are keeping people blind to what is a huge crime! How dare them keep what is actually important news from the people! Those people who only watch morning shows and MSM cable channels will not be informed or know that their money was/is being stolen by Wall Street! Even CNBC is not discussing this directly!
EDIT to ADD
Nutshelling the MF Global Collapse
Posted by Ann Barnhardt - October 31, AD 2011 11:14 AM MST
Yes, I called it late last week and strongly urged MF customers to make a hasty exit stage right, but I absolutely did not see what happened this morning coming. This is utterly unprecedented. The Chicago Mercantile Exchange issued an email circular this morning (I received mine at 8:39 am MDT) stating that all MF Global positions were limited to LIQUIDATION ONLY and all MF employees and brokers and traders were banned from the floor of the exchange.
- As I mentioned last week, MF Global came to its present form back in 2005 when the then-biggest clearing firm, Refco, imploded and was bought by EDF Man. The new, huge firm was then renamed MF Global. When Refco imploded in 2005, NOTHING like this happened. It was a relatively smooth transition, trading was not interrupted, and most of the Refco employees were absorbed into the new company. There was absolutely NO interruption of customer access to positions.
- Shutting off access of customers to their floor brokers and limiting them to liquidation-only is UNPRECEDENTED. If a big account did not have multiple clearing relationships, the risk exposure this morning for those firms is terrifying to ponder. I did not see this coming. The whole industry is pretty much in shock.
- Let's not forget that a whole lot of people have just lost their jobs. All of the MF clerks, back office staff, everyone who worked for MF on Friday is now unemployed this morning. Those people matter. John Corzine views them as meaningless economic units who exist only to serve him and advance his power and increase his personal wealth, but John Corzine is an evil sociopath who should be permanently removed from society and imprisoned for the rest of his life so that he can do no more damage. Fricking jackal.
- Speaking of Corzine, more info is coming out in the bankruptcy filings. First, Corzine stands to reap a $12.1 million severance package / golden parachute per the bankruptcy filing. But that isn't the worst. Corzine was hired by MF less than two years ago. He promptly went about loading the company up on European bonds. That in and of itself is damning enough. Remember, Corzine is Goldman Sachs. He knew EXACTLY what was going on in Europe and he knew that European paper was junk. But guess which European countries he loaded up on? Greece, Portugal, Italy and Ireland. The four little PIIGs. Corzine intentionally drove MF into the ground so that someone, and my money is on Goldman Sachs, could come in and buy the remains for 30 cents on the dollar or less. Watch the news. Watch and see who ends up buying the remnants of MF. If it isn't Goldman outright, I'll bet it is a "holding company" that is tied to Goldman. As an astute commenter over at ZeroHedge.com said last night, it looks like Corzine never really stopped working for Goldman. He just moved his office into MF Global's suite.
- And now, ONE MORE TIME regarding the financial industry regulators in this country. Guys, they are evil, corrupt and incompetent. The regulatory bodies are run by evil, evil people at the top who are complicit in these goings-on. There is NO POSSIBLE WAY that MF Global could have passed any honest audit with the amount of exposure it was carrying in the European bond market. By the way, MF Global's audit would have fallen under the jurisdiction and oversight of the Chicago Mercantile Exchange itself AND the Commodity Futures Trading Commission on the Federal level. It is just impossible that the CME and the CFTC didn't know MF's position and risk exposure all along. The second tier in these regulatory agencies are a combination of evil, greedy and incompetent bureaucrats who could very well be classified as "useful idiots" who will do anything, say anything, or overlook anything just so long as their salary check clears the bank every month. The third tier are full-blown useful idiots - and by that I mean totally, completely and astoundingly unqualified and incompetent "foot soldiers", many of whom are affirmative action hires. When things like this happen (and there are other examples of massive ponzi schemes being ignored in recent history, like the Sentinel Management Group fiasco) what these regulatory bodies do is lay the blame for "missing" the red flags at the foot of the affirmative action hires who are the on-site auditors and who are made to sign off on the audits. Do you see this? Do you see the evil we are dealing with here?
- And now here is a paragraph that everyone in the financial industry, but most particularly the futures industry, should send viral. Every Introducing Broker and Futures Commission Merchant in the world is being targeted for extinction by the megabanks. They want you GONE. Goldman, Citi, JP Morgan, etc. They are working with and through the financial regulatory bodies and with the Federal Government via such legislation as Dodd-Frank to force out of business every FCM and fold all of that business into the megabanks. IBs like me are also a target, but we IBs are meaningless guppies compared to whale-sized FCMs.
How long will an FCM like ADM last before looking at Dodd-Frank and saying, "Screw this. We're selling our clearing operations and we'll just go back to straight-up product merchandizing." Why shouldn't they? If the FCM profit center is made impossible by the government and the corrupt regulatory bodies, why would they continue to operate an FCM? Why not sell to Goldman or one of the other megabank entites and then do their exchange-traded hedge business through them as a customer? When will the old Chicago boutique firms be similarly forced out, either through regulation that makes their business impossible, or through outright sabotage as with Corzine and MF? None of you FCMs are safe.
THEY WILL COME AFTER YOU AT SOME POINT. You have been targeted for extermination. Either you wake up to this fact and expose these regulatory bodies, megabanks and the Federal Government and fight them, or you are going to end up like MF, being bought by Goldman or one of the other fascist government-connected megabanks for pennies on the dollar. You have been warned.
7. This MF Global collapse is a small-scale (yes, that's right, SMALL-SCALE) foretaste of what is going to happen to the entire system. When I say get your money out of the market, out of paper instruments, and turn it into something real that is physically located on your property, that you can then stand in front of with an assault rifle and physically defend, I'M NOT KIDDING.