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The Neverending MF Global Story: Regulators Block The Truth
Forbes ^ | Jan. 9, 2012 | Francine McKenna

Posted on 01/10/2012 7:38:00 PM PST by JustTheTruth

Instead of looking out for MF Global investors – and customers who are still waiting for their money – it looks like regulators and the bankruptcy trustees are busy suppressing information. Instead of full transparency, regulators and the trustees are holding onto crucial details that might tell us all who was asleep at the wheel when the broker/dealer and futures commission merchant (FCM) headed over the cliff.

Bob English, an independent trader and contributing editor to the blog, Economic Policy Journal, published a post this morning that raises serious questions about the Securities and Exchange Commission’s program of regulation for broker/dealers and, in particular, the agency’s role in keeping the truth from the public about what went wrong at MF Global. We’re also being kept from the truth about other broker/dealers who may be putting risky trades on their books or whose controls over segregation of customer assets may be weak or non-existent.

It seems that sloppy scanning and filing standards combined with preferential treatment for certain large brokers has substantially reduced the value of this part of the SEC’s public filing system. Since this is often the sole repository for disclosures about private companies, including broker dealers that do not have public holding companies, investors are being deprived of timely and critical information. Even for those broker dealers that do have public holding companies, such as MF Global Inc., the financial notes of the broker audits disclose different, and oftentimes, more substantial information.

Since it is now apparent that Louis Freeh, the former FBI Director cum MF Global Holdings trustee, is running cover for MF’s largest creditors, not the least of which is JP Morgan Chase, it is all the more critical that the integrity of the SEC’s public filing system be scrutinized. {snipped}

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


TOPICS: Business/Economy
KEYWORDS: corzine; mfglobal
We're living in a fascist state with the merger of federal and private interests.
1 posted on 01/10/2012 7:38:02 PM PST by JustTheTruth
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To: JustTheTruth

That’s for sure. Regulators have been useless for some time now.


2 posted on 01/10/2012 7:59:45 PM PST by MichaelCorleone
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To: JustTheTruth

This is not a Govt of the people. Hasn’t been in a while. This political class has granted themselves privileges that we only receive pieces of information about.

It’s going to take action to change this.


3 posted on 01/10/2012 8:15:48 PM PST by reefdiver ("Let His day's be few And another takes His office")
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To: JustTheTruth

barnhardt.biz. Anne is all over it.


4 posted on 01/10/2012 8:18:03 PM PST by Hoosier-Daddy ( "It does no good to be a super power if you have to worry what the neighbors think." BuffaloJack)
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To: JustTheTruth

Why do you think so many estalishment regulars are in the tank for Romney?

He’ll go along with anything those folks demand!


5 posted on 01/10/2012 8:25:46 PM PST by SatinDoll (NO FOREIGN NATIONALS AS OUR PRESIDENT!)
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To: Hoosier-Daddy

Because MF Global was a commodity futures brokerage it should have a BK filed specifically as a commodity exchange BK, which would have placed all the customers in first position to get paid back, instead, the trustee filed as a Securities Brokerage BK, which gave the creditors first position, i.e. wholesale theft. The trustee then raided the customers accounts in preparation to reimburse the creditors. Very, very bad precedent.


6 posted on 01/10/2012 8:27:47 PM PST by Hoosier-Daddy ( "It does no good to be a super power if you have to worry what the neighbors think." BuffaloJack)
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To: Hoosier-Daddy
Your description could lead someone to believe this was a planned con-job from the start. The fact that dem operatives are still walking free lends credence to that assumption on my part. Is this structure even legal? I don't want more laws but there seem to be few violated here. If only we had a prosecutor...
7 posted on 01/10/2012 10:55:18 PM PST by allmost
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