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.
so when she says get out, what exactly does she mean? Pull it out in cash and bury it in the backyard? Liquidate your 401 k and pay the tax she says, and then what? Buy a farm? Buy a herd of cattle? What? Keep it in pennies in the garage? Buy cars? What?
Bigger mattress means deeper sheets you know....gotta camo the cash
First of all—buy what you want and need now because you cannot count on money you saved and invested being available when you want or need it.
If you live in the city buy that second house in the country.
If you have an expensive hobby indulge yourself—you only live once.
If you want to give money to your heirs or loved ones do it now.
Do not trust any investment advisor—if you lose they are not liable for your losses so f^%& them!
There’s a handful of us Freepers who have been saying this for years now; that the ‘bankster’ and there brought and paid for lackeys in government have completely rigged the system and we have been called names worse than those used on Obama.
These Financial entities are allowed to run multi-million dollar scams and yet when caught NO ONE goes to jail and at worse they pay pennies on the dollars they stole.
I’ve caught flak before and as I said I’ve have been call a communist and worse for saying this, but the corner three card Monte dealer is more honest than most of the Too Big to Fail banks and investment houses. And face it the Monte dealer who scams a few hundred is a thousand times more likely to go to jail that the banksters that are stealing millions.
Here’s a good read:
Liquidate your 401K, buy Gold and Silver and stand over them with an automatic weapon.
Whatever other forms of wealth you have - bring them onto your property, under your direct oversight.
For instance: if you are a farmer, build on-farm storage for your crop. Don’t entrust it to a 3rd party. Grain elevator companies can be as honest as the day, but they can be wiped out by these acts of legalised theft Miss Barnhardt is talking about. In such a situation JPM would get your assets.
I don’t believe this woman is characterizing the result of this matter properly. What the court said is this - Mellon has a right to the collateral Sentinel put for the loan. Sentinel’s crime is all the greater because they put up collateral that wasn’t really theirs. It’s Sentinel’s problem not Mellon’s. And Corzine is as culpable as Sentinel.
Think of it this way. You steal an auto and the title to an auto that’s not really yours and there are no liens. You sell the car and give the title to a third party. Is the third party purchaser going to lose when all comes out? Not if it was a commercial sale, of course he loses if its a sham sale. You remain liable for your crime against the original owner. Mellon sits in the same seat as the person who bought the car. Commerce can figure this one out just as they once figured out how to keep land swindlers form selling the same property two and three times.
I had always thought that if I received stolen property unknowingly that it reverted to the rightful owner when and if the truth came out and that it was tough luck for me. I suppose I could sue the thief for my loss, but the original property owner had first claim.
OK I know I am in need of some coffee but can you explain what this means and how it effects regular people like me........Sorry, my mind is just not taking this in today
That does not work. Whoever bought the hot car gets nothing. Money is gone and car goes back to original owner.
It was the bankers responsbility to due their due diligence and make sure the money is not stolen or improperly obtained. Otherwise money laungering would be simpler then it is.
How am I supposed to sleep tonight?
isn’t there a record of gold and silver purchases?
Eventually the government MUST come for our savings. Once our debt bomb explodes, the only REAL money left in this country is in private savings (banks, 401k’s, pensions). They will take this money and replace it IOUs.
Why am I so sure - because the ONLY other option that can resolve this problem is to turn Social Security into a welfare program, and the geezers won’t allow that for a second.
There really is no other ending.
Not necessarily true. You could reach the status of a bonafide purchaser, subject to a few conditions.
Her histrionic, choppy, profane style of writing is just awful...worse than nails on a blackboard. Give me a well-reasoned and coherently structured article and I’ll trust it a lot more.
What about the FDIC insurance? One would still be protected by that.
Ugh! Puppy sitting two reactive maltese dogs for a client...I didn’t get to sleep last night.
I heard something last night though that sort of rattled around in the old sleepy noggin’ of mine.
It was a newscast about the top 5 banks were/are required to provide the government with a collapse plan...and how the government can’t insure or doesn’t have the ability to back the top 5 banks. It didn’t surprise me, but it sort of rollsover with this blurb you posted...that it is not our money if it is not in our hands.
Ah...here it is:
Exclusive: U.S. banks told to make plans for preventing collapse
U.S. regulators directed five of the country’s biggest banks, including Bank of America Corp and Goldman Sachs Group Inc, to develop plans for staving off collapse if they faced serious problems, emphasizing that the banks could not count on government help.
The two-year-old program, which has been largely secret until now, is in addition to the “living wills” the banks crafted to help regulators dismantle them if they actually do fail. It shows how hard regulators are working to ensure that banks have plans for worst-case scenarios and can act rationally in times of distress.
Ping to post #40.
Article at Reuters is related and basically sounds like FDIC is defunct in that scenario.
Point One: I'm one of your "geezers", so I'm at the sharp end of your argument.
Point Two: (and really the salient one) SS hasn't been anything BUT a welfare program practically since its inception, but particularly over the past thirty years.
(I didn't expect to ever be able to recover more than a fraction of the money I was paying into the system when I first started work, and it's almost a surprise every month when I get That Check, not to mention that it actually continues to clear the bank.)
Sorry to wreck your argument, but if you're depending on any delay in the Feds looting your 401K while they're occupied with the dustbunnies left in the Social Security "Lockbox", you're strictly SOL.
Revolution is coming folks to take America back.
"F" stands for "Federal." Fedgov is severely in the red. In a major collapse, where would they get the money to back up deposits?
“Sorry to wreck your argument, but if you’re depending on any delay in the Feds looting your 401K while they’re occupied with the dustbunnies left in the Social Security “Lockbox”, you’re strictly SOL. “
You’re in the other 50% of the older people on this site - the one’s that put the country first. And I agree, the raid will take place - unless the country shifts radically, and quickly.
So what’s the price of Tungsten gold-buggered up to now?
She closed her operation after Jon Corzine demonstrated that client funds can be looted with impunity.