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)
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.
Nope. Sorry, Duncan.
Anne’s cattle marketing instruction business is doing just fine. She teaches about the cattle business and how to market cattle.
She shut down her brokerage service because of IMF Global, and has been warning everyone to get out of the markets and banks immediately.
Go see for yourself about her cattle marketing seminars:
Cornerstone Cattle Marketing
One of the traders on Varney & Co. said to buy “things”... gold, a house in a nice neighborhood, oil and gas stuff (not sure what he meant by that, stocks in oil companies?).
The problem always comes down to how does one protect the stuff? A nice neighborhood today could be an abandoned one tomorrow. Gold can be stolen and stocks manipulated.
If I had the money, I would move to some quiet little country and hope the parasites don’t invade when they kill their own hosts.
“Sentinel allegedly pledged hundreds of millions of dollars in customer assets to secure an overnight loan at Bank of New York Mellon, leaving the bank in a secured position but Sentinel's customers out millions.
Customer funds were allegedly moved from the protected accounts to other accounts so they could be used as collateral for loans to Sentinel's own trading operations.
The appeals court said that “perhaps the bank should have known that Sentinel violated segregation requirements” but agreed with the district court's earlier ruling that “such a lack of care does not rise to the level of the egregious misconduct” needed to reprioritize a claim.
“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 wrote in the ruling.”
So henceforward, stealing your clients money is neither “fraud” nor “egregious misconduct.”
I never thought we'd become a banana republic. We are one now.
Looks like I got the two operations confused... ;-P
What about the FDIC insurance? One would still be protected by that.
Hey, no one’s perfect!
Ann Barnhardt and Rick Santelli are exactly the type of experts to be put in charge of regulating these crony capitalism markets after dumping the Dodd-Frank monstrosity in the trash.
If one decides to go all cash/precious metals and stuff it in the matress, make darn sure you keep documentation. The IRS and law enforcement agencies would be more than happy to confiscate it if you don't have proof of ownership. If one wants to go that route, I would seek legal advice...