Cyprus - It has already been allowed here in U.S. MF Global and a Fed Reserve New Policy - Freezes everyone's accounts if need be. Now desperation is starting, open stealing in full view

I have been astounded about what is happening in Cyprus.   I have been reading everything I can and have gone to Cyprus online news websites and translating them.

What Cyprus proves is.. the Governments and Banks of the world don't give a Sh** about the people.   They are all above the law and lie, steal and cheat everyone out of their money.  They want to make the people poor and dependent upon them.   They will live their high life and spend money as they want and give themselves huge bonuses, because they know if they have to.. they can just simply steal everyone's money out of the bank.

The people of Cyprus are locked out of their accounts and there is no guarantee they will be able to get any money out tomorrow, when the banks are suppose to reopen.   (update - the parliament is now delaying meeting yet another day to vote on the stealing of the money, so the banks will not open tomorrow after all.)

The situation around the world has been bad since 2008 and they have put bandages on it to cover the wounds up.  But those bandages are loosing up and about to fall off and reality of how large the wounds have gotten over the years will be in full view.   The desperation of the banks from their loose monetary policies is becoming so apparent that they are now willing to openly steal from the people.

We had MF Global and PF Global, besides Lehman and Bear Stearns here in the U.S.  The people were blindsided with each one.

People don't realize it, but we have had our Cyprus events here in the U.S. already.   The government and courts were involved with the not so obvious stealing of people's money and metals.

JP Morgan was allowed to steal people's money directly from their accounts at MF Global.  After that the courts sanctioned the stealing by making the bankruptcy as an equities one instead of a commodities one, which would have put the people first in getting their money back instead of banks.

The courts have already ruled that deposits in the banks are not guaranteed to the people.  
Besides that the Federal Reserve has implemented a policy that all money in banks and other investments can be frozen if the need arises.

the Federal Reserve also implemented a new policy for money market funds held by financial institutions. Per the new policy, money market funds, which account for some $2.7 trillion in deposits across the United States, can be frozen in the event of an emergency or financial panic. This means that if and when the system does go into a tailspin, at exactly the time people will want to pull their money out of their bank account, they will be restricted from doing so.

This event in Cyprus may wake some of those who are slumbering up, I am sure in Cyprus it is doing that.

They had promised the people over the last month, they would never take money from people's accounts in the bank.  I have read that over and over again in comments on Cyprus news sites.

 The Eurozone controllers demanded Cyprus steal the people's money directly out of their accounts for the debts of the bank.  The people have worked hard and they already pay outrageous taxes and they have the highest utility charges in the world.  I have been reading how they are charged 500+ Euros per month for very little electricity used.   The IMF and Euro managers have even mentioned possibly doing something like the Cyprus stealing in Italy if necessary.

Are they so seriously deranged, sociopaths and psychopaths  now... they aren't even considering that people will fight back?  Are they so stupid that they don't realize people may get ahead of their legal stealing and take their money out of their accounts?   They want to save banks?  Well if people are smart and waking up they are going to rush to their bank and get all their money out.   I would imagine there will be bank runs in Europe, especially in Greece and Italy.   I can only hope they are smart and bank runs start.  The banks and governments may have just put their nail into their coffins.  They are being shown they can not be trusted for one second.  They will tell you one thing and then turn around and do another.

If anyone of us, stole even a dollar out of someone else's account, we would be charged with a Federal crime.  Yet the privately owned banks can literally steal billions out of people's individual accounts and it is all sanctioned by the governments.

They are Private banks that gambled away money and loss!  It is just as if we had gone to a casino and gambled money ourselves and loss.  We can't expect the government to come and steal from the person sitting next to us to cover our losses.  We have to suffer.   Yet, banks can gamble in derivatives and everything else and the governments will always make sure they recover their losses either by printing or by just saying to the people... "Give the bank your money."

Needless to say Zerohedge is all over the Cyprus stealing and I highly advice people to read what the articles they are putting out about it all.

People need to remember if they believe their money is safe in stocks, that is not true.  I posted a year ago about how stocks are actually owned by the Federal Reserve through a broker.  All stocks are put in one name and it is not the person who purchased them.

Literally the only place money is safe now is, in your own hands or in gold and silver as an investment and insurance against inflation.

I hope people in the U.S. are paying attention.  There has been discussions about using people's retirement money for government bonds here.  So that will be a sanctioned stealing of people's money by saying it is for 'the people's protection.'

If people believe the U.S. will never do as Cyprus is doing, then they have not paid attention.  Cyprus is following the U.S.'s lead in reality.  When the U.S. allowed/sanctioned JP Morgan to steal billions directly out of the people's accounts at MF Global they set the precedent of banks around the world to see it can be done.  In the U.S. the people are so asleep and due to the MSM never saying a word about the stealing most do not even know it occurred.  Corzine is best buddies with Obama, he was never charged and is even allowed to now trade other people's money again.

If you notice the big MSM sites don't even have the Cyprus situation as big news, it is only small blurbs on their pages of distraction news.

Here is my message to all the Banks.

It is time for people to wake up and if they don't do it now, will they do it when all their money is stolen by the government and banks out of their own accounts?   When their retirement money is gone and literally any money saved is stolen for the "good of the country and banking system?"

Is it any wonder DHS is buying 2700 armored vehicles for the U.S and have purchased 2 billion rounds of ammo.  Is this for the day the government allows the banks to keep all deposits, retirement, stocks, safety deposit boxes contents and every other investment the people have for the 'good of the banking system?'

May the bank runs begin and the Fiat money system is crashed around the world!

Update 3/19/13 - New Zealand is putting the plans in place to be able to do as Cyprus, Steal people's money overnight. 

FBI investigating JP Morgan's 2 Billion Loss. But MF Global stealing of people's money - No investigation.

Let's see FBI is opening an investigation into JPM loss of 2 billion. BUT they let MF Global get away scot free with STEALING almost 2 billion from their customers and gave it to JPM.

Please explain this rationale to me, especially since the CFTC has sat on their Asses and know all the B.S. bets that JPM does already and all the manipulation of the markets.

So What is REALLY going on here?

I seriously don't understand this, because of MF Global being allowed to steal and they have said not one charge will be made against Corzine etc. 

So.... Who is now actually pissed off and trying to screw who? 

Am I going too far down the hole with these thoughts, Also - the media was and still is SILENT about MF Global and most people still don't even know about it - but they are ALL OVER JPM.  

Also the JPM info was released on a Thursday, instead of the normal of bad financial news being released on a Friday after markets close. 

Just something ODD about all of this to me..... 

someone needs to explain this to me .....

From above link:

The FBI in New York has opened an inquiry into JP Morgan Chase's $2 billion loss, NBC 4 New York has learned.

People familiar with the matter tell NBC 4 New York that the inquiry is not a criminal investigation. The FBI is taking a preliminary look at the incident.

JPMorgan Chase CEO Jamie Dimon disclosed last week that the bank had lost the $2 billion by making a bad bet with so-called credit derivatives.

FYI - I am not a fan of JP Morgan and I don't think those losses could have happened to a better bank (except for Goldman Sachs) and their manipulation of Silver is beyond ridiculous and obvious! 

But as I said, there is just something about all of this that is just not right.  Someone has suggested to me that this may actually have something to do with MF Global and somehow it is all linked.   I don't know about that, but I do know MF Global clients lost their money and JP Morgan took all the gold and silver that was being stored by MF Global clients.  They were allowed to steal it all.  The government, CFTC and FBI looked the other way and no one is being charged for wrong doing.   So, where do all the pieces of the puzzle fit here?  Because to me, it is a puzzle right now.  What is this whole thing distracting us from?

Edit to add:  I just found that Zerohedge did a short article about the FBI investigating JPM losses and they mention MF Global too and how the FBI should investigate that.

Update: 5/17/12 - JPM a distraction for the damning Wall Street Illegal Activities released last week. 

Court Says MF Global Executives Still GET Bonuses for 2011! WTF? They Stole people's money and they are getting Bonuses?!

WOW the news is not stopping this morning 3/9/12 that is just mind boggling at how the people are getting raped by the banks!

Besides what I posted earlier that Goldman Sachs has demanded (when push comes to shove) that the banks are to be paid debt before Social Security and Medicare benefits for U.S. citizens. 

It has been revealed that MF Global executives are still going to get bonuses of millions of dollars for 2011!

I am at a loss of words of what is happening and how those who have defrauded the world and have out right stolen money from the people and they are not just not being prosecuted for the stealing and out right fraud but they are being given money for it!

You just can't make this stuff up!  How is this even possible?  How is it a court is giving bonuses to those who stole billions directly from people's personal accounts?

Part of some of the executives bonuses will be on what amount of money they can get for the  clients owed from the bankruptcy.  But don't think those are the clients that had their money stolen from them.  Remember the Judge put it as an Equity Bankruptcy so that means Wall Street banks are in line ahead of the people.  So sounds like the bonuses will be based on how much more money they can give Wall Street.

Portion from link:

The payments could vary in size depending on progress with the estate and likely would be paid in batches throughout 2012, a person familiar with the matter said. The total payouts are expected to be smaller than bonuses received by the same executives before MF Global sank amid panic over the big bets made on European sovereign debt under Jon Corzine, the company's former chairman and chief executive. He resigned in November.

For example, Bradley Abelow, president and chief operating officer at MF Global, got a salary of $829,545 and a bonus of $1.25m for the fiscal year ended March 31, 2011, according to a securities filing. His total compensation was $7.6m. After the Chapter 11 filing, Abelow agreed to cut his annual salary to $60,000, another securities filing shows.

The other high-ranking MF Global executives who could collect bonuses under Freeh's plan are Henri Steenkamp, the company's chief financial officer, and Laurie Ferber, general counsel, people familiar with the matter said.

All I can ask is.... What Will be the  trigger for the people to wake up?  The way it is going, I can't imagine it will take too much more.  We the people need to get the real news to those who have refused to see it up to this point, somehow.


This morning all I can keep saying is WTF! when I have read how the banks are moving in for the final kill of everyone's money.  

Yesterday I posted about all stocks and bonds are actually owned by the Federal Reserve and how I then understood how MF Global got away with stealing the billions.  

FOR THE COURT- TO NOW REWARD THEM FOR STEALING BILLIONS!?  OUT F ING RAGEOUS!

Keiser Report - Bankers getting highest pay and bonuses ever for 2011 and Interviews David Morgan about Silver and MF Global

Max Keiser Report.

He reveals the bankers are getting the highest pay and bonuses for 2011 than ever before. Yet the stocks are down for the banks, but they are making more money than ever. Max also interviews David Morgan of Silver-Investor.com.  

It is an Excellent interview and any one interested in Silver and Metals should listen.  They discuss how the CME is screwing the people and only paying them 3/4 of their money for the metals they literally stole out of the warehouse from those who had physical metals.   

Explosive Interview Jim Willie "JP Morgan Crashed MF Global to Avert COMEX Failure, they stole all the accounts that were going to take delivery"

This is an absolutely Explosive Interview Silver Doctors has that Jim Willie of the Golden Jackass 
did with Bull Market Thinking.

Silver Doctor has allowed me to reproduce the transcript of what they have on the page in regards to what Jim Willie said about MF Global.

If this is true then this is completely Explosive and the Comex and JP Morgan stole everyone's money to avoid a default!  But don't expect the government to hold them accountable, especially since the Judge assigned the trustee for MF Global that is a counsel for JP Morgan. 

Portions of Jim Willie's interview with Bull Market Thinking:

The Youtube videos of the interview are at the bottom.

We had a COMEX system failure in November.  COMEX was ready to default on gold and silver in November.  Rather than honor delivery demands in gold and silver- JP Morgan simply stole the money in the accounts that were going to stand for delivery.  They had their pockets picked while they were standing in line at the delivery window.  Notices of delivery were replaced at stolen accounts! 

 
JP Morgan averted both a COMEX default and a European sovereign debt implosion, and notice that JP Morgan increased the amount of silver in their registered vaults by precisely the amount that was supposed to be delivered!  

This is just another financial 9/11, and THERE WILL BE MORE.  
If JP Morgan can steal 140,000 futures accounts, what's to stop 250,000 MUTUAL FUND ACCOUNTS FROM BEING STOLEN!?!
 
The Fed was staring at 20 Lehmans in Europe!!  20 Lehmans almost happened, and the fed rushed in, lowered interest rates for banks.  If there is another big implosion and there is another string of contagion and big banks are dead in the morning, don't expect there to be any money in the accounts in the morning. 

I think we're going to see SEVERAL MILLION PRIVATE ACCOUNTS VANISH!
Pension funds, mutual funds- they're all at risk , and people I talk to HAVE NO CLUE.  Put your money in GOLD AND SILVER!

We are at the verge of a very widespread, colossal theft of private accounts. It's getting really, really dangerous.

Quantitative Easing never ended. It just increased in deception.  It increased while the deception got worse.  TAKE A LOOK AT THE DATA! IT NEVER STOPPED! Hyper-monetary inflation is the new normal.

We have big European banks selling boatloads of sovereign bonds.  The foreign creditors of the US are big sellers of Treasury Bonds. Operation Twist is QE3! Quantitative Easing is now the policy, its gone global! What they're trying to do is not talk about it, because talking about it hurts the dollar. They're just not talking about it!  There's been a huge spurt in the past few months of derivatives- $9 Trillion in the past quarter alone from Morgan Stanley! Can you say $9 Trillion in interest rate swaps in order to create the impression that money is flowing into treasury bonds!?!  This is getting incredibly dangerous! This just continues to make it worse!
No policy is working towards a solution.  We don't have any insolvent banks being liquidated.  We don't have any policy towards bringing back jobs from China. The deception and bad economic policy is hiding perpetual RUIN!

The two pillars of US economic policy are 1. Give money to the banks in the hopes they increase lending (but they only give more bonuses) 2. and panhandle consumers.
I think we need to give jobs to people so they can earn the money- increase industry!
Unless the housing market recovers, the banks face systemic failure!

I believe we saw two major failures with MF Global. I think it will end up being up to $5-$10 Billion dollars in stolen client accounts.  I have one contact who they confiscated his entire account- I think he had over $100,000- it's missing. He made a complaint a few days ago that the receipts that prove his account- they were just seized by the receivership committee! They confiscated the evidence of his account!  We have JP Morgan trying to sit on the board making decisions on stolen money, when they did the stealing!

We had a COMEX system failure in November.  COMEX was ready to default on gold and silver in November.  Rather than honor delivery demands in gold and silver- JP Morgan simply stole the money in the accounts that were going to stand for delivery.  They had their pockets picked while they were standing in line at the delivery window.  Notices of delivery were replaced at stolen accounts!

JP Morgan underwrites a lot of credit default swaps.  JP Morgan makes a lot of money in this unregulated insurance.  How are the sovereign bonds doing? They're doing lousy.  In order to stay neutral, its always a good idea to buy the underlying asset.  I think MF Global was set up to fail a long time ago to go down in flames- to steal clients' accounts when the inevitable finally happens.  We were on the verge of the sovereign debt in Europe imploding. We saw a near event of an implosion in some of these sovereign bonds markets.

JP Morgan covered their butts by letting MF Global fail, and in the process stealing 140,000 accounts.  Its not just MF Global accounts, its stealing many accounts that used MF Global for their clearing!

The FBI is investigating this, but they havent talked to Corzine yet.  WHY!?!  Because this is a cover-up, JUST LIKE MADOFF!

JP Morgan averted both a COMEX default and a European sovereign debt implosion, and notice that JP Morgan increased the amount of silver in their registered vaults by precisely the amount that was supposed to be delivered. 

This is just another financial 9/11, and THERE WILL BE MORE.  
If JP Morgan can steal 140,000 futures accounts, what's to stop 250,000 MUTUAL FUND ACCOUNTS FROM BEING STOLEN!?!

The Fed was staring at 20 Lehmans in Europe!!  20 Lehmans almost happened, and the fed rushed in, lowered interest rates.  If there is another big implosion and there is another string of contagion and big banks are dead in the morning, don't expect there to be any money in the accounts in the morning.

I think we're going to see SEVERAL MILLION PRIVATE ACCOUNTS VANISH!
Pension funds, mutual funds- they're all at risk, and people I talk to HAVE NO CLUE. 
Put your money in GOLD AND SILVER!

Here is the Youtube audio of the interview:




MF Global starts towards the end of this portion of the interview



This portion has the part of JP Morgan stealing people's money to stop a default of the Comex.

MF Global - 1.2 BILLION Missing from Clients accounts - yet NO One has been arrested or accused of Stealing!?

This is what the Occupy Movement is about!  There is one set of laws for us normal folks compared to banks and corporations!

Did you have doubts about Wall Street being allowed to steal before?  Did you have doubts about MSM being controlled before?  Did you have doubts about the government being controlled by the banks before? Have no more Doubts now!  Here is the Proof! 

This  is so unbelievable and it is hard to understand how it is possible.  How is it the most blatant stealing of money by a Wall Street Broker out of it's clients accounts and there have been no arrest or charges filed against anyone?

It is being found 1.2 Billion has been stolen from people's accounts at MF Global, not 600 Million!

portions from above:

The amount of customer money missing from the collapsed trading firm MF Global may be more than $1.2 billion — double previous estimates — the trustee dismantling the firm’s brokerage unit said on Monday.
Regulators currently suspect that MF Global — at the time run by Jon S. Corzine, the former Democratic governor of New Jersey — improperly used customer money for its own purposes in the days before filing for Chapter 11 protection on Oct. 31.

Investigators are considering two possible situations. One is that MF Global used the money to meet trading partners’ demands for extra cash, which could come back. The other is that it was used to cover trading losses, which would mean that the money cannot be recovered.

No one at MF Global, including its former chief executive, Mr. Corzine, has been accused of wrongdoing.

Representatives for MF Global, the CME and the Commodity Futures Trading Commission declined to comment.

_______________________________________________________________________

I wrote about MF Global - in detailing who they are and who the board of directors are.  It is everything about MF Global

I also wrote about the Bankruptcy judge giving them 8 million to keep them going.

If anyone questions Main Stream Media and them being controlled by the banks and corporations, you need not question it anymore.  There has been no mention of MF Global and their stealing of clients money since Oct. 31st and the filing of bankruptcy.  CNBC has mentioned it as they have to,  they are a financial network.
Most people do not even know about MF Global as the networks have not said a single word about it.

From the fact MSM is ignoring MF Global, proves it is big news and the media is completely controlled, they are not actual news networks but propaganda networks.  Otherwise they would be giving people the real news that affects them.

It seems they are afraid people would get smart and realize Wall Street has been given the green light to blatantly steal money out of people's accounts and are not held accountable for it.

If I went to the bank and stole One Dollar out of someone's account, I would be charged with a Felony and thrown in jail!  BUT a Wall Street broker can literally STEAL 1.2 Billion and NO One is arrested or charged with theft?!

This is WHY I support the Occupy Movement!

Ted Butler - "Unmitigated Disaster" - About MF Global and CME not making the customers whole as they are suppose to! Also Video of Ted Butler's interview on 11/10/11 about Criminal Silver Manipulation

Ted Butler is someone I follow. He released his take and information about MF Global and the CME. The CME is suppose to make the clients of MF Global Whole, but they have not yet. The CFTC is suppose to be calling on CME to make MF Global's clients whole, but they have not. The Fraud of CME saying one thing but doing another.

Here is Ted Butler's latest:

Oftentimes, the significance of truly historic events is not fully appreciated at the time they occur. I think we are at one of those times with the bankruptcy of MF Global. There’s no question that the news and overall circumstances of the demise of the large commodities brokerage is widely known, but the significance of the event is not yet fully understood. While I would classify the event as an unmitigated disaster on many levels, I have hope that it might result in some long-overdue and necessary changes in the commodities regulatory structure.


The disaster is that for the first time in modern financial history, the main guarantee of the clearinghouse system has completely failed its most important constituent – the customer base. The underlying promise to every participant in the futures market is that your money and open positions are safe from theft and default. This is the very glue that holds the future market together, namely, that all market participants can depend upon strict regulation and oversight to safeguard against fraud and theft. That’s what has made the US organized futures exchange system the envy of the world. Until now. For more than a week, almost all of the 50,000 commodity customers of MF Global are in limbo as to the access and status of their funds on deposit and open positions. This is unprecedented and beyond bad. For these 50,000 customers, it’s the equivalent of discovering your bank just went out of business and there is no assurance all your funds will be returned. (In the interest of full disclosure, my background is in futures, having started as a commodity broker at Merrill Lynch some 40 years ago. But I have not traded futures for years and am no way personally involved in the MF Global mess; I’m strictly an outside observer and independent analyst).


Let me cut to the chase here and pinpoint the real problem – the CME Group. I know I have continuously criticized the CME, even calling it a criminal enterprise on many occasions, but in truth I may have understated the case. Yes, I would agree that the immediate cause of the MF Global bankruptcy was MF Global itself; but what turned it into a disaster of unprecedented proportions was the CME Group. The CME Group was the front line regulator for MFG, responsible for auditing and insuring the safety of customer funds and for guaranteeing those funds in a worst case scenario. The CME failed at every turn. Not only did its auditing fail miserably, the CME failed to step up to the plate to safeguard customer funds after it was discovered that $600 million was missing. This is like a case of paying premiums for years on an insurance policy only to be denied coverage when presenting a claim for the first time. I know that the federal commodity regulator, the CFTC, has been negligent in the case of MF Global as well, but that does not mitigate the CME’s failures.


Of the twin failures by the CME in the MF Global bankruptcy, clearly of more significance is its failure to stand up and guarantee that all MFG customers would be immediately made whole by the clearinghouse system run by the CME. The clearinghouse system, a consortium of financial firms whose collective finances stand behind every trade, has been the main backstop to all futures trading for many decades. It was widely understood by all market participants that if a clearing member failed, all the other clearing members and the exchange itself would step in to guarantee customer funds and prevent contract default. TheCME boasts on its web site that anywhere from $8 billion to $100 billion in protection is available in the event of a clearing member failure. If it was telling the truth, it would seem $600 million should be no problem.


Instead, we all have a very big problem, thanks to the CME Group. Our financial and credit systems are based upon trust and belief. The word credit itself comes from the Latin word “credere” or to believe. What the CME Group has done by not immediately guaranteeing all MF Global customers and positions is to undermine belief in the futures market clearing system. So important is this issue that I am at a loss to explain how the CFTC hasn’t yet mandated that the CME do the right thing. And I have been somewhat dumbfounded that the analytical community and media haven’t been all over this, but there was an article in today’s NY Times that discusses the CME’s failures for the first time. In addition, there was a well-written article on the Internet that did describe the problem and the CME’s role. Please pay particular attention to the comments submitted on both articles.
Worst of all, even MF Global customers who held no open futures positions and only cash and unencumbered assets, like registered warehouse receipts for silver, gold and other commodities, have found those assets under the control of the bankruptcy trustee. If you do own warehouse receipts on silver or other commodities that are tied up in the MF Global bankruptcy, you must run, not walk, to a securities attorney to secure your legal rights to your property. This is not a matter of what is right or wrong, as the unauthorized appropriation of private property is never correct. This is a matter of law, which sometimes is not the same as what seems right or wrong. Please don’t delay. The CME is to blame for all of this, but blame must be saved for later.


If there is any good that might come from this whole sordid affair it is that it may shine the light on what needs to be done. What needs to be done is that the CME Group must be stripped of any regulatory powers it has. As I have long contended, there is a clear conflict of interest in having a for-profit entity set its own rules and regulations, especially an entity that shows nothing but contempt for its own members at large and its customers. The CME Group spends all of its energies encouraging artificial trading schemes, like High Frequency Trading, designed to increase trading fee revenue and not on market integrity and customer protection. The CME Group has just demonstrated to the world its contempt with its failure to stand behind MF Global customers even though it promised to do so beforehand. Next time you watch the CME Group commercial that runs incessantly on financial TV that proclaims how farmers and airlines come to the exchange to hedge their price risks, please keep in mind that the CME just abandoned those farmers and airline customers who were MF Global clients.


One other small bonus that has emerged from this disaster is that the event has revealed as a lie all the nonsense that CME leaders have publicly proclaimed about the integrity of their markets. For the past few years, the smug and arrogant leaders of the CME have testified publicly before congress and the media about how the exchange’s clearinghouse system withstood and avoided the failures of the non-clearinghouse financial system as typified by AIG. CME officials trumpeted the advantages of it being a Self-Regulatory Organization (SRO), quite capable of handling regulatory matters without the need for further government regulation. Unfortunately, even high officials of the CFTC were apparently sucked in by the appearance of financial strength and integrity portrayed by the CME’s clearinghouse system of guarantees and the wisdom of letting it continue to regulate itself. That has now all been shown to be a lie. What good are guarantees if they are not honored when need be? What good is self-regulation if it leads to the wholesale abandonment of the customers’ financial interest?


Fortunately, there is a simple remedy to the calamity of distrust growing in our market system as a result of the CME’s failures. The CFTC must immediately force or persuade the CME Group to do what it has promised and should have done on its own, namely, immediately guarantee that all customers of MF Global are made whole. Let the lawyers battle it out as to who is ultimately liable after all the customers have been made whole. That the CFTC hasn’t done this yet is bizarre. If the Commission delays longer what is now clearly a primary failure at the CME will soon become primarily a CFTC problem. We need adult supervision right now. Clearly the CME Group is not up to the task. If the CFTC doesn’t take over responsibility and force the CME to do the right thing, God help us all.


Another thought in closing. The CFTC’s recent official affirmation that it is continuing its three year old silver investigation shines another spotlight on the CME. The investigation of silver by the CFTC clearly involves the CME, as the world’s leading marketplace for silver is the COMEX, owned by the CME for the past three years. Yet the CME has never said one word about the ongoing silver investigation as it has been content to hide behind the CFTC and pretend there are no allegations of a silver manipulation. I guess that is to be expected from an entity that regulates itself.


I’m purposely confining my comments to the emergency at hand. There is no change in the silver outlook. It is still a crooked market destined to go much higher in the long run. The sooner the CFTC cracks down on the CME and then addresses the silver manipulation, the sooner those higher prices will come.


Ted Butler
November 10, 2011
For subscription info, please go to www.butlerresearch.com


Ted Butler's interview on 11/10/11 about Criminal Silver Manipulation:

Part 1



part 2

Bizzaro & Uncomprehendable - Bankruptcy Judge Gives MF Global 8 Million to keep going until Nov. 14th! Whose money did he give them?

This is so outrageous!  A bankruptcy bought and sold ,Judge Glenn Martin, has given MF Global 8 Million dollars for them to keep going in business that will last them until Nov. 14th, to see if they can survive!

Now, lets think about this for a moment........ Would any customer be stupid enough to stay with MF Global at this point and even give them more money to invest for them?  DUH........  Unless they are complete idiots, I can't imagine any customer would hand over money to MF Global for more investments, when their other money has already been stolen by the Wall Street broker!

The only thing I can even comprehend about this.. is the Judge has given MF Global 2 weeks to shred all evidence of files and stealing people's money!

This does not make the least bit of sense, unless the Judge is corrupt.  Whose money did the Judge give to MF Global, taxpayers?  Why would a Judge give a company 8 million dollars when that company is 2.2 Billion in debt?!  Even someone who is asleep has to wonder about this. 

Here is a post I did today with about research on MF Global,  

In the post linked above, it shows MF Global was the number one trader on the Comex for futures.

A friend of mine talked to his futures broker today.  That broker said MF Global was not that big in futures of  metals on the Comex.   As I read the article to my friend linked at the top from CNN about the Judge giving MF Global 8 million dollars, I read a sentence when it all came clear to me (in my opinion) of who is really behind the shorts on the Comex.

Here is a sentence from the CNN article, where I believe it is the circle of shorts on the Comex.

JP Morgan holds the bulk of MF Global's debt, about $1.2 billion, while Deutsche Bank has another $1 billion.

 Right there, says JP Morgan has loaned MF Global 1.2 billion.  MF Global is a futures broker and the number one futures trader on the Comex.... so..... was JP Morgan the one financing MF Globals shorts of metals?  Everyone has always thought JP Morgan was the shorts broker, but could MF Global actually have been the shorts of metals and JP Morgan the money backer?

So, this bankruptcy Judge for some reason found it in his heart to give 8 million to MF Global so they can stay in business 2 more weeks!

Is this so regulators and the FBI can't just go in and take all the files immediately.... so MF Global can destroy them?  Is this so CME and JP Morgan can figure out what to do with all the short positions on the Comex, before metals go wild?   Is this so all the well connected politicians can get their money out?

Funny how Jon Corzine is/was a huge Obama bundler of political campaign money.

With this obviously corrupt Judge allowing MF Global/Corzine to stay in business for 2 more weeks, it seems no one is going to go to jail.  As soon as Corzine and the other executives walked into that court today, they should have been taken away in handcuffs and arrested.  Instead Judge Glenn Martin found they should get money to stay in business.    This just does not make sense in any way shape or form, unless there has been a pay off or helping to cover up crimes!
Gosh, I wonder if a Judge would do that for me, if I ever stole hundreds of millions of dollars from people?

From CNN article:

NEW YORK (CNNMoney) -- MF Global executives pled in bankruptcy court Tuesday for access to enough money to keep the company afloat.

Judge Glenn Martin awarded the bankrupt brokerage firm $8 million, which should last MF Global until Nov. 14, according to a bankruptcy court representative.

An attorney for the brokerage firm had asked "to have a little bit of a lifeline to do some work, to see if we can survive."

Will some wake up from this event?  I won't hold my breath but can only hope a few will say WTF! when they read Judge Glenn Martin gave a corrupt Wall Street broker money, who had stolen hundreds of millions of dollars to stay in business.  

UPDATE 11/2/11 

Zerohedge has an article "Inside Story of what brought down MF Global"

In the filing embedded on the page is some interesting information, especially this:  to me this goes with what I wrote above... are they the ones behind all the shorts of metals with JP Morgan being the money backer?  This matches the fact they are listed as the number one futures broker on the Comex.   Paragraphs from the document embedded below:

  . Commodities.  

11. MF Global provides clients execution services for transactions relating to derivative contracts, including futures, options, forward sale agreements and other types of instruments based on the price of metals and industrial materials. Metal derivatives are traded on exchanges and in the OTC markets. MF Global is one of 12 designated ring-dealing members of the world’s larges metals exchange, the London Metal Exchange. 

12. MF Global also executes trades in the energy derivatives market,including futures, options, swaps, and forwards on a range of energy products, including crude oil, natural gas, heating oil, gasoline, propane, electricity and other energy commodities. MFGlobal is an active market participant in both exchange-listed and OTC-traded energy derivatives,and has been consistently ranked as one of the leading providers by volume of clearing and execution services on both the New York Mercantile Exchange and ICE Futures Europe. 

13. MF Global also delivers its clients targeted hedging and risk managementsolutions and helps clients locate trading opportunities in a broad array of agricultural commodities markets. MF Global provides trade execution services for a wide range of OTC and listed agricultural commodities markets, including the grain and oilseed futures and optionsmarkets and for soft commodities, such as coffee, cocoa, and sugar, on exchanges in NorthAmerica, Europe and Asia Pacific

9



Amazing - 11/2/11 - Not one morning show has mentioned MF Global, nor a News Cable network. It is all about Cain, Kim Kardashian, and ridiculous stories that have no meaning in the whole scheme of things. One of the biggest news stories and actually impacts people they are completely SILENT on!

MF Global STOLE Hundreds of Millions from their Clients to pay for their bad trades! MF Global advised the G20 on Commodities and Chinese Government! Everything you want to know about MF Global! ARREST them all immediately including Jon Corzine!

 Jon Corzine - Former Goldman Sach's CEO and Former Governor of New Jersey (2006 to 2010)

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"!

Corzine to get 12.1 million golden parachute - per bankruptcy filing!! (from information by Anne Barnhardt - article at bottom)

**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.

From Zerohedge article:

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.

As for the details:

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.

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.

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!  


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.

WOW - MF Global executive was invited to the G20 meetings and briefed the G20 on the markets!  


http://www.mfglobal.com/relentless-pursuit/home/sharing-market-expertise-with-the-g-20

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.

These are the people advising the G20?   How many pensions and sovereign funds have been lost now if they were invested through MF Global?

They have been an adviser for China's government and Chinese corporations!  They were big into metals!  

MF Global works closely with Chinese companies and government agencies in ways that extend well beyond simply generating orders and executing transactions. 

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.

This kind of partnership with clients has enabled MF Global to become a top-ranked metals and commodities broker in Asia.

 Here are their 2011 Awards and Recognitions for what they did!

2011

Ranking: #2 Overall Macro-Washington Research Category

Rated best in: Accessibility and Responsiveness

Rated best in: Useful and Timely Calls and Visits

Institutional Investor All-American Research Team Poll 2011

Ranking: #1 Exchange Traded Crude Oil and Refined Products Broker

Ranking: #1 Copper Broker

Ranking: #2 OTC Crude Oil and Refined Products Broker

Ranking: #3 Base Metal Options Broker

Ranking: #3 Nickel Broker

Asia Risk Commodity Rankings 2011

(rankings based on online survey)

Winner: Best Futures Broker 2011

Finalist: Best Forex Provider 2011

Finalist: Best CFD Provider 2011

TheBull.com.au

Here are their offices around the world:

Australia MF Global Australia Limited                            India MF Global Sify Securities India Pvt. Ltd. Asha Towers Tirupati Balaji Towers Unit No.3 Langford Cross Road Bangalore 560025 Tel: +91 80 4045 8500 Fax: +91 80 4045 8585 www.mfglobal.in MF Global Sify Securities India Pvt. Ltd. 2nd Floor, 'C' Block Modern Centre 101, K.K. Marg, Jacob Circle Mahalaxmi, Mumbai 400 011 Tel: +91 22 2302 1800 Tel: +91 22 2300 2999 Fax: +91 22 2300 2969 www.mfglobal.in MF Global Sify Securities India Pvt. Ltd. S9, Green Park Market Extention New Delhi 110016 Tel: +91 11 46070929 Fax: +91 11 26530131 www.mfglobal.in Japan MF Global FXA Securities Ltd. 24F, NBF Hibiya Building, 1-1-7 Uchisaiwai-cho, Chiyoda-ku, Tokyo 100-0011 Tel: + 813 3592 3400 www.fxasec.com Singapore MF Global Singapore Pte. Limited One George Street #17-03 Singapore 049145 Tel: +65 6347 8300 Fax: +65 6438 9730 mfglobal.com.sg United States MF Global Inc. 440 South LaSalle Street 20th Floor Chicago, IL 60605 Tel: + 1 312 548 1000 Fax: + 1 312 548 0011 www.mfglobal.com MF Global Inc. 141 West Jackson Suite 1400-A Chicago, IL 60604 Tel: +1 800 621 0265 Tel: +1 312 528 3000 Fax: +1 312 528 3296 www.mfglobal.com MF Global Inc. 717 Fifth Avenue 9th Floor New York, NY 10022 Tel: +1 212 589 6200 Fax: +1 212 589 6215 www.mfglobal.com MF Global Inc. 55 East 52nd Street 40th Floor New York, NY 10055 Tel: +1 212 589 6200 Fax: +1 212 589 6215 www.mfglobal.com Level 21, Grosvenor Place 225 George Street Sydney NSW 2000 Fax: +61 2 9247 3765 www.mfglobal.com.au Canada 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 www.mfglobal.ca MF Global Canada Co. 123 Front Street West Suite 1601 Toronto ON M5J 2M2 Tel: +1 416 862 7000 Fax: +1 416 862 0576 www.mfglobal.ca China MF Global Singapore Pte. Limited, Shanghai Representative Office 17/F, Shanghai World Financial Centre 100 Century Avenue Pudong New Area Shanghai 200120, P.R.China Tel: +86 21 6106 2520 Fax: +86 21 6106 2527 www.mfglobal.com Hong Kong MF Global Hong Kong Level 23 100 Queen's Road Central Hong Kong Tel: +852 3553 1000 Fax: +852 3553 1888 www.mfglobal.com.hk

Taiwan MF Global Singapore Pte. Limited 1 Dunhua S. Road Section 1, 6A Taipei 105, Taiwan Tel: +886 2 2579 8118 Fax: +886 2 2579 6816 www.pmf.com.tw Polaris MF Global Futures Co., Ltd. 10F, No 69, Sec 2 Dunhua S Road Taipei 106, Taiwan Tel: +886 2 2700 8989 Fax: +886 2 2700 9293 www.pmf.com.tw MF Global Futures Trust Co., Ltd. 12F, No. 65, Section 2 Dunhua S. Road Taipei 106, Taiwan Tel: +886 2 27080101 Fax: +886 2 27845959 www.mfte.com.tw United Arab Emirates MF Global Middle East DMCC Unit No. 601, White Crown Building Plot No.58, Sheikh Zayed Road P.O. Box 212291, Dubai Tel: +971 4332 8895 Fax: +971 4332 5052 customercaredubai@mfglobal.com United Kingdom MF Global UK Limited 5 Churchill Place Canary Wharf London E14 5HU Tel: +44 20 3321 4000 Fax: +44 20 3321 6700 www.mfglobal.co.uk

Here are the Board of Directors:

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 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 >>

These are their trade rankings on exchanges - they are number one on the Comex (Metals)!

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 here for underlying detail

This is from a PDF file from their site of "How they protect their Clients money"

MF Global Inc. ("MF GIobal") is registered as futures commission merchant (FCM) with the Commodity Futures Trading Commission and as a broker-dealer (broker-dealer) with the Securities and Exchange Commission. It is also a member of the New York Stock Exchange (NYSE) and other U.S. securities exchanges, and of the Financial Institution Regulatory Authority ("FINRA" and collectively with the NYSE and other exchanges, the self regulatory organizations or "SROs").

 
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

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.


Securities
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
FDIC Disclaimer:

Obviously they LIED - they STOLE the money from their investors around the world! This is Bigger than Lehman and Bear Sterns in my opinion!  I want to hear they are being ARRESTED IMMEDIATELY!

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!  

ARREST THEM TODAY!

I wonder if China and other countries will Immediately Arrest MF Global executives in their countries?  Are the MF Global executives going in hiding and trying to get to the U.S. where they know they will be protected and never arrested, after all it is a Wall Street Crime Syndicate that committed these crimes of stealing! 

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!

The questions are.... do the regulators look the other way with all the Wall Street crime syndicates (Goldman Sachs, Merrill Lynch, JP Morgan,etc.)?  I don't believe people's money is safe in any Wall Street bank/firm!

I am suggesting for everyone to protect their money and and get it out of any Wall Street Crime Syndicate, before they steal it all for themselves!

I am in solidarity with the Occupy Wall Street Demonstrators! The only way to stop the Wall Street Crime, since regulators are paid off and look the other way, is to get your money out of Wall Street and put it in your local Bank and Trust! 

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.

1. 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.
2. 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.
3. 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.
4. 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.
5. 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?
6.  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.

Corzine was SENT into MF Global with the objective of collapsing it and rolling the remains into Goldman (presumably). And he was paid eight figures to do it, AND promised SEC TREAS after Geithner. If you had said six months ago that the largest FCM in the U.S. would be taken down, everyone would have laughed in your face, but here we sit. The only question is, who is next?

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.