Posted on 11/21/2011 8:50:41 AM PST by quesney
The court-appointed trustee overseeing the liquidation of MF Global’s brokerage now estimates that the shortfall in the firm’s customer funds could be more than $1.2 billion, double previous estimates.
(Excerpt) Read more at dealbook.nytimes.com ...
I'm guessing Wall Street has also lost the average retail investor's trust for at least a generation.
Good grief. How do you “lose” $1.2 BILLION?
Off shore bank accounts.
That’ll leave a mark!.
You “trust” your hard earned money to Jon Corzine, our next Treasury Secretary!
If segregated funds aren’t segregated, major jail time is called for. Even following orders on this should be severely punished.
There is an investors protector insurance group, but as far as I know, that’s for securities. I don’t know if there’s any protection for commodity accounts once the rules of conduct and the exchange oversight have been breached.
Time to invest in Orange Jumpsuit, handcuff and leg chain manufacturers.
You “trust” your hard earned money to Jon Corzine, our next Treasury Secretary!
I started to laugh at this before I remembered that in our today’s USA — Upside-Down States of America — something like this could really happen. We are in the Twilight Zone, where even cash in a brokerage account isn’t safe.
Off the top of my head the CME’s version of SIPC needs to make this good; hope they didn’t let their insurance lapse . . .
What I'm intrigued by is the NY Times covering this. Think of it, the NY Times covering something like this of MF Global, a company which Jon Corzine headed until recently?
Pinch me, I must be dreaming.
by stealing money from customer's segregated accounts to make super high risk investments. They bet wrong and lost the money they converted from their customers in the market.
“Good grief. How do you “lose” $1.2 BILLION?”
You don’t lose it, of course. You steal it. In essence, this appears to be plain old theft. You simply take funds from customer accounts and use them (and lose them) in your business. As of now, Corzine appears to be a common thief who wormed his way into the big leagues.
All of that said, it is still early; so maybe there is some other explanation. For the sake of the account owners, I hope so.
“There is an investors protector insurance group, but as far as I know, that’s for securities. I don’t know if there’s any protection for commodity accounts once the rules of conduct and the exchange oversight have been breached.”
I’ve heard that commodites/options/futures accounts *are not* protected. MF’s clients are F’d.
Culture of Corruption
Incredible no one goes to jail over this stuff.
Read Ann Barnhardt’s Farewell to the Markets message
(Also check out her Youtube vids- she rocks!)
Put Corzinne in a cell next to Bernie Madoff
-——How do you “lose” $1.2 BILLION-——
The article says is was lost in trading.
The loss is the gambler’s equivalent of trying to make up losses at the roulette table with the kid’s college money
It's similar to fire insurance..if you take our coverage, then burn your house down, it's not in effect..
This was a major fraud..all the cash balances were removed and transferred. It takes several clerks..back office personnel..to do this..Corzine ordered it to be done, but the ones who actually did the transfers knew they were breaking the law..and should have refused to comply, AND reported it to the authorities..They probably went along, because they were told by Corzine, and he convinced them, that it would all be put back in a few days, no one would know, and it would save the firm, and their jobs..
They're now talking to the feds,a nd attemptig to work out plea bargains for themselves. The Feds wan direct testimony linking Corzine to the criminal acts..
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