Posted on 08/11/2012 3:00:45 PM PDT by SCalGal
A ruling in the case of failed futures brokerage Sentinel Management Group could make it more difficult for customers to recoup money lost in the much larger collapse of MF Global, according to Sentinel's bankruptcy trustee.
A federal appeals court on Thursday upheld a ruling that puts Bank of New York Mellon ahead of former customers of Sentinel in the line of those seeking the return of money lost in the 2007 failure of the suburban Chicago-based futures broker.
The appeals court affirmed an earlier district court ruling that the bank had a "secured position" on a $312 million loan it gave to Sentinel, which turned out to have been secured by customer money.
Futures brokers are required to keep customers' funds in dedicated accounts to protect them from being used for anything other than client business.
However, Thursday's ruling suggests that brokerages can use customer funds to pay off other creditors, Sentinel trustee Fred Grede told Reuters.
(Excerpt) Read more at reuters.com ...
This is enough to make a person deposit money only in their mattress.
If it's in your mattress, you can pull it out when you want it.
Or in the Cayman Islands
This is the _ _ they’re trying to pull with Extortion-Care. None of the MBS trash was in reality secured by 1-1 true matching collateral. All filled with sugar water.
Now they’re going to try to secure the Fed. shakedown with Extortion-Care 2014. Satanically, using every American citizen’s body as working, forced working, collateral.
Yep.
"All your base belong to us."
Feudal system, here we come!
“All your investment capital are belong to us.”
“...and, your earnings too.”
Thank you. Always good to have multiple sources.
Jon Corzine should be up on charges but instead he’s still one of Obama’s biggest bundlers. Though I hear he’s being shunned in the Hamptons.
You might be interested in this article also.
You can cheat your customers, but you can’t eat your customers.
"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.
MF Global? What idiot named their company that? It doesn’t say what “MF” stands for, but we can all guess. How’d you like to work for them, and be called an “MF’er”?
If an accountant moved Aunt Martha’s money to a different account controlled by him, and used it as collateral for a loan, and then defaulted, and the bank took the money ... that wouldn’t constitute theft? And the bank could keep the money?
If I steal your money and give it to Tom, and I am discovered, Tom is not allowed to keep the money. I think it is called the crime of “receiving stolen property”.
Why is the bank any different?
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