Skip to comments.RED ALERT: It's Open Season on All Customer Funds
Posted on 08/10/2012 11:13:07 PM PDT by STARWISE
The NFA is collusion with the Banksters, government and judiciary have achieved their goal. The entire concept of "customer segregated funds" is officially, completely, legally dead.
Guys, it is OVER. I know that many of you are still cowering in normalcy bias, unable to deal with reality, unable to face the world as it is, but you have GOT to snap out of it. The marketplace is DESTROYED. You CANNOT be in these markets. All legal protections are now officially gone.
Do you remember how I told you about the Ponzi scheme that imploded in 2007 called "Sentinel Management Group" that stole over $500 million in customer funds?
The NFA was the auditing regulator of Sentinel, and the NFA admitted after the Sentinel Ponzi imploded that they signed off on their audits even though the NFA claimed not fully understanding Sentinel's books or accounting methods.
In other words, the NFA didn't really audit Sentinel at all - they just PRETENDED to audit them, drew up some forms, had some robosigners sign off, and then just hoped that when the shit hit the fan, everyone in the industry would be so terrified of the NFA that no one would hold the NFA accountable for their criminal malfeasance - or even talk about it.
Sentinel took customer segregated money and fraudulently used it as the collateral on a loan from Bank of New York Mellon for $312 million to fund their own in-house proprietary trading operations.
When the Sentinel Ponzi collapsed, BNYM sued to go to the front of the line of creditors - ahead of the customers of Sentinel whose money was fraudulently used as collateral, which has now been "linguistically sanitized" into the word "hypothecated".
The federal appeals court ruled yesterday that not only does BNYM stay at the front of the line, but that using customer segregated funds as collateral is NOT a crime, and that co-mingling customer segregated funds with proprietary funds is NOT fraud.
Here is the Reuters piece.
Read this quote from the ruling, which is, in essence, the entire financial market paradigm being guillotined:
That Sentinel failed to keep client funds properly segregated is not, on its own, sufficient to rule as a matter of law that Sentinel acted with actual intent to hinder, delay, or defraud' its customers.
U.S. Circuit Judge John D. Tinder
What this means is that even if Jon Corzine is somehow dragged into court by private citizens, because you know damn good and well that the Justice Department will never, ever touch him, Corzine now has a legal precedent, likely from a bribed or otherwise coerced Federal Appeals Court, explicitly stating that an FCM can use customer deposits to pay its debts, and that the customers themselves are subjugated and have basically no legal right to their own monies, no matter what the law says, or what legal assurances, claims or guarantees are made to that customer about their funds held with an FCM or any other brokerage or depository institution.
The "secured" party at the front of the line will always be the mega-bank who made the fraudulent loan using the stolen customer funds as collateral.
In other words, all customer funds in the United States are now the legal property of JP Morgan, Goldman Sachs, BNYM, or whichever megabank is the counterparty on the loans the FCM or depository institution takes out in order to fund its mega-levered proprietary in-house trading desks.
For the love of God, I don't know what more there could possibly be to say to snap you people out of your normalcy bias trance.
You have GOT to get ALL MONIES out of the financial system NOW. This ruling sets precedence for every depository institution, not just futures brokerages.
It is now legal in the United States for any financial institution to steal customer funds, borrow money against those funds for the uber-levered proprietary trading use of the financial institution, and the customers have ZERO CLAIM TO THEIR OWN FUNDS once they are in the custody of the financial institution.
The court has ruled that once your money passes out of your PHYSICAL POSSESSION, and I mean PHYSICAL possession, it is no longer yours, and you have no legal claim or legal recourse to it when it is stolen. This includes BANK ACCOUNTS.
Money in a bank is in the possession of the BANK, not you. Do you comprehend this? The entire system is utterly devoid of any integrity or genuine security and is breaking down catastophically before our very eyes.
You HAVE to comprehend that your money sitting in an account is no longer legally yours. You have to force your brain to process and comprehend this, no matter how incomprehensible it may seem. IT IS OVER. This is Marxist hell. We have arrived.
This ruling and precedent will be used by every brokerage, every bank, every insurance company and every pension fund to deny you your money when the financial system finally collapses, be it on Monday, or be it two years from now.
DO YOU UNDERSTAND?
You have GOT to GET OUT.
And all of this goes straight back to the criminal mafia that is the National Futures Association, and the fact that they have not actually been auditing those firms who were in the "cosa nostra", and allowing Ponzi schemes to operate with full bureaucratic protection for decades. Sentinel. PFG Best.
The legal precedent enabling this protection racket and blatant fraud and thievery is fully in force, and what Corzine did at MF Global is now legally PROTECTED.
This is ecomonic treason.
Treason is a capital offense, meaning that the death penalty is fully justified, warranted and on the table, should the day ever come when a Second American Republic is established, and with it the re-establishment of the rule of law and justice in this land.
UPDATE: Yes, the South Park "And . . . It's Gone" clip is now 100% factual. Here it is. It is clean. No dirty language, just the cold, hard reality of our dead civilization.
(video at link)
WTH! OMG! I need to get a bigger mattress.
Glad I’ve been rolling over into gold and other assets.
Frankly, I thought this lesson was learned long, long ago. My dear old Dad got robbed out of his pension when the bank he worked at for decades was bought, stripped, and resold. That was in the ‘80s.
Will try to Bump it tomorrow.
Is that physical gold or paper gold? Gold in a financial instrument is no better than the funds in the article.
...the means by which ALL the money in pensions funds/IRA’s/401K’s will be subsumed into the monster derivative sinkhole the major banks have tied the Federal Treasury to...
No, dude. I buy the gold I can roll around in my hands, just like G. Gordon Liddy.
This is one of the most important posts in quite some time. Thanks so much for finding it. I was watching CNBC and Fox Biz most of the morning, listened to Limbaugh 12 to 3 and heard not a word about this.
Thanks .. the world is collapsing around us, truly.
God help us ..the barbarians are inside the gate,
and there are no stops or sheriffs in town, it
and no one at Goldman Sachs gets jailed for their
travesties, they just have to pay $500M in fines, etc.
~ ~ ~
CME Considers Clearinghouses as Investor Confidence Wanes
By Matt Egan
Published July 23, 2012
Alarmed by recent transgressions in the futures industry, the CME Group (CME: 53.59, +0.08, +0.15%) told customers on Monday its exploring the idea of deploying clearinghouses to hold all customer segregated funds.
Such a move would be aimed at restoring some of the trust in the industry, which has been roiled by the collapse of MF Global last year and the July 10 bankruptcy filing by Peregine Financial Group, or PFG.
CME Group is appalled by the recent misuse of segregated funds by two firms, MF Global Inc. and PFG, particularly since there has never been anything like it in the history of the futures industry, Executive Chairman Terry Duffy and CEO Phupinder Gill wrote in a letter released on Monday.
Under the current system in place, futures brokerages hold onto customer funds but are supposed to keep this money segregated to protect it.
CME said not protecting customer funds is such a fundamental breach of trust that the current system certainly needs to be reevaluated.
~ ~ ~
Who is protecting the citizens???
Is this author credible? I’ve just recently stumbled upon some of her posts and videos and don’t know anything about her.
I don’t personally care for her style of writing but the factual information is correct.
I’m not in the investing or financial field, and I’ve been reading her for months. In addition to being a fervent Catholic warrior, she definitely doesn’t mince words and throws out the raw and painful truth as she, a former commodities trading firm owner, sees it.
This is her letter to her clients explaining why she was closing up shop:
You can go to her site and scroll down for all her posts.
I’m sure you’ve seen Michael Voris’ latest .. it is appalling, is it not?
Yes, Dr. Kopp, she is not only credible, she is a Roman Catholic who could easily be St.Joan of Arc. This woman has all the fine attributes of a Crusader!
She operates Cornerstone Cattle Marketing, and advises cattlemen on how to market cattle.
I’ve met her. She walks the walk.
It sure is, BG ... holymoly.
“This ruling and precedent will be used by every brokerage, every bank, every insurance company and every pension fund to deny you your money when the financial system finally collapses, be it on Monday, or be it two years from now.”
Where have you been Ann? that’s the essence of the 08 bailout and follow-up Extortion-Care 2014 Plan. Moral Hazzard breached. And the backing behind HillaryRomneyExtortionCare.