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How JP Morgan And George Soros Ended Up With MF Global Customer Money
Clearing & Settlement ^ | January 8, 2012 | none stated

Posted on 01/10/2012 4:47:07 AM PST by Texas Fossil

In recent testimony before a Congressional committee, MF Global’s former chief Jon Corzine as well as other MF Global executives said repeatedly the didn’t know where the failed brokerage firm’s $1.2 billion of missing client money was. In fact, MF Global executives knew exactly what happened to the money, as do the regulators who oversaw the firm’s bankruptcy. The so-called segregated customer funds were repeatedly, and legally (through re-hypothication), used as collateral for MF Global loans for 100:1 leveraged bets on European sovereign debt.

Rehypothication is the 800lb gorilla (Editor’s note: make that the 2,000 lb gorilla). In 2007 I was with another fund that was the first 2.5bln casualty

A substantial portion of MF Global’s commodity clients cleared their transactions through the Chicago Mercantile Exchange and Comex, owned by CME Group (ticker: CME). The question now looming over CME’s stock is whether the company will be liable for customer losses, as the Commodity Customer Coalition, a group that says it represents some 8,000 investors—including many hedge funds–with exposure to MF Global are not going down without a fight.

(Excerpt) Read more at clearingandsettlement.com ...


TOPICS: Crime/Corruption; Extended News; Front Page News; Government; News/Current Events
KEYWORDS: corruption; corzine; democratcorruption; democrats; fraud; mfglobal; rehypothication; soros; wallstreet
Who would have thought? George Soros stealing money? hee hee hee Well actually it was Corzine (the Dem Finance Guru that actually stole it, George just wound up with it.)
1 posted on 01/10/2012 4:47:20 AM PST by Texas Fossil
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To: Texas Fossil

No alternative, really. We certainly can’t have draconian regulation that would adversely affect capital markets. In the long run, people do the right thing on their own, as evidenced by absolutley nothing at all.


2 posted on 01/10/2012 4:56:13 AM PST by Wolfie
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To: Wolfie

MF “Global”

Global scams are harder to nail down than local ones.

Regulations are not the real issue, absence of integrity and honesty is the “real issue”.

But this is how it is.


3 posted on 01/10/2012 5:01:07 AM PST by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one)
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To: Texas Fossil

So, in other words, the money is now Obamas defacto
“billion dollar” election fund courtesy of the unknowing taxpayers via Corsine/Soros. Corsine gets a pardon in the end.....after all, his actions have been too big to go unforgiven.


4 posted on 01/10/2012 5:11:31 AM PST by Michigan Bowhunter
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To: Wolfie

Every investor knew this was high risk money. Dealing with a corrupt Dem makes it higher risk.

PRay for America


5 posted on 01/10/2012 5:13:03 AM PST by bray (Ride Santorum back to Sanity)
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To: bray

PRay for America

I do but sadly, I think we’re doomed.


6 posted on 01/10/2012 5:23:31 AM PST by FES0844
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To: Michigan Bowhunter

Not that Soros need it, but Yep.


7 posted on 01/10/2012 5:23:31 AM PST by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one)
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To: bray
Every investor knew this was high risk money.

Investors are one thing, customers are quite another.

Many defrauded were Ag commodities producers who had place money with them to backup some of their trade position. They never "invested" in MF Global. Some actually purchased "glold bullion" and it was held at MF Global's facility. They owned it, it is a tangible asset, but from what I have read they are treated just like the other "customers" in the Bankruptcy. They no longer "own" the gold they paid for.

8 posted on 01/10/2012 5:28:09 AM PST by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one)
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To: Texas Fossil

MF Global Theft Leads to CME Breakup?

Fox Business video

http://video.foxbusiness.com/v/1377288026001/gasparino-break-up-of-cme-on-the-table/


9 posted on 01/10/2012 5:32:57 AM PST by Whenifhow
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To: Whenifhow

Yes, it could lead to that.

Think of the total damage due to the Commie Quisling who resides at 1600 Penn. Ave.


10 posted on 01/10/2012 5:43:01 AM PST by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one)
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To: Texas Fossil

Ann has been warning people of ALL paper assetts.

Be very cautious in your investments!!!


11 posted on 01/10/2012 5:55:57 AM PST by phockthis
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To: bray
“Every investor knew this was high risk money. “

There were many farmers who hedge their crop and livestock production through local brokers. MF was the clearing house for that local broker. Most people would check out the local broker extensively; but wouldn't think about who was clearing the trades behind the scenes.

These farmers were not speculating either. They are required by their lenders for example; to have some price protection in place for the crops and livestock they produce.

12 posted on 01/10/2012 6:02:03 AM PST by HereInTheHeartland (I love how the FR spellchecker doesn't recognize the word "Obama")
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To: Texas Fossil

What does this have to do with George Soros stealing money...I think you just made that part up. The article says he *bought* the assets from Goldman...how is that stealing?

If I buy a house at a bank foreclosure, did I steal it? Seems by your defintion I did.

There are lots of reasons to not like Soros, but is FR all of a sudden against capitalism?

I am fairly certain that a crime has been committed at MF Global, and hope Corizne goes to jail for it...but lets not just make things up...good grief.


13 posted on 01/10/2012 6:03:07 AM PST by qwerty1234
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To: Whenifhow

The problem is, in England the rules were different than the US. MF Global’s English bank was where the funds went. It may have been legal under the rules to use customer’s funds.

Makes not difference. This is Fraud. Corzine should do time, but that will not repay the huge losses.


14 posted on 01/10/2012 6:07:34 AM PST by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one)
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To: qwerty1234

Soros is NOT a capitalist.


15 posted on 01/10/2012 6:09:25 AM PST by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one)
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To: ken5050; Liz

FYI


16 posted on 01/10/2012 6:15:31 AM PST by maggief
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To: Texas Fossil
Quisling

You must have seen the History Channel show on Collaberators

Mike

17 posted on 01/10/2012 6:18:06 AM PST by MichaelP (The ultimate result of shielding men from the effects of folly is to fill the world with fools ~HS)
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To: Texas Fossil

Thanks for posting.

For more information on re-hypothecation:
http://newsandinsight.thomsonreuters.com/Securities/Insight/2011/12_-_December/MF_Global_and_the_great_Wall_St_re-hypothecation_scandal/


18 posted on 01/10/2012 6:28:03 AM PST by aldabra
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To: Texas Fossil
Soros is NOT a capitalist.

Agreed. Soros is a 'crony capitalist' aka corporatist aka fascist, which fits right in with his background.
19 posted on 01/10/2012 6:32:00 AM PST by aldabra
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To: qwerty1234
If I buy a house at a bank foreclosure, did I steal it? Seems by your defintion I did.

But what if you buy a car with no title and its VIN scratched out from someone who hides whenever the cops come by. How liable are you for buying obviously stolen property?

20 posted on 01/10/2012 6:50:03 AM PST by KarlInOhio (Herman Cain: possibly the escapee most dangerous to the Democrats since Frederick Douglass.)
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To: KarlInOhio

>>But what if you buy a car with no title and its VIN scratched out from someone who hides whenever the cops come by. How liable are you for buying obviously stolen property?

But that’s not what happened in this case is it? MF Global made a bad bet, the valued plummeted, and Goldman (and then Soros) stepped in and *bought* the assets.

No different then you buying a stock that crashes, then you are forced to sell because you got a margin call, and I stepped in to buy it at a discount.

Lets put the blame where it belongs - MF Global and Corizine. They made the bad bet - not Soros.


21 posted on 01/10/2012 7:05:43 AM PST by qwerty1234
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Expose The Clowns In DC


Click Obamas Cabinet

Support Free Republic

22 posted on 01/10/2012 7:16:03 AM PST by DJ MacWoW (America! The wolves are here! What will you do?)
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To: MichaelP

No, I did not see “Collaberators”, but know that Soros and his father both were.

I like the History channel (some things on it), but watch almost no TV.

I used the word “quisling” because I think Obozo typifies that.

http://www.mnc.net/norway/quisling.htm

“AS IN ALL the other occupied countries, the Nazi power profited from the support of local sympathisers. During a visit to Hitler in Berlin in the winter of 1939-40, the leader of the national socialist Nasjonal Samling Party, Vidkun Quisling, had pointed out how valuable it would be for Germany to occupy Norway. Immediately after the invasion, on the morning of April 9, 1940, he proclaimed himself the new head of the government and ordered the Norwegian armed forces to stop battling the Germans.”


23 posted on 01/10/2012 9:19:54 AM PST by Texas Fossil (Government, even in its best state is but a necessary evil; in its worst state an intolerable one)
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To: Texas Fossil

Not a surprise.

I have seen a few sources claim that JP Morgan Chase contributes to Planned Parenthood, also. Actually, quite a few financial corporations do.


24 posted on 01/10/2012 9:19:59 AM PST by WPaCon
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To: Michigan Bowhunter

Yep.


25 posted on 01/10/2012 10:12:57 AM PST by Dubya-M-DeesWent2SyriaStupid!
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To: Texas Fossil
He was the star of the show, so to speak...

Obama is a Quisling!

Mike

26 posted on 01/10/2012 11:13:16 AM PST by MichaelP (The ultimate result of shielding men from the effects of folly is to fill the world with fools ~HS)
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