Yes I have seen this news. Thanks. Had a few chats with different broker houses, include PFG, but they are all not able to bring out any money from MFG at this time. Account transfers are blocked.
In the best case, this takes a few days to sort out and other brokers will be able to get this accounts and in the worst case, it will be like it was with REFCO. 17'000 customers never got any money or compensation for there losses.
Out of absolutely sheer luck I dodged the refco bankruptcy years ago as I had moved account out only a week before it seized up. This time not so lucky as I am in monetary bardo with MFG Canada. Client funds are still tied up but in Canada they are insured - unlike the US which does not insure futures accounts. Your protection is supposed to be the sacrosanct rule of segregation. Once again regulators not doing their job. What the hell they actually do - surfing porn sites I guess - is a sad joke on all of us. Most traders have no idea on unsafe their cash is.
That MFG is a"rogue" outfit will no doubt be the meme put out in the financial mainstream media. But I doubt that is the reality of it. Corzine was being considered for Geithners job and MFG was a primary dealer for UST. Yet they were leveraged 40:1 . I find it hard to believe that this is a one off situation and counter parties to many of these bad trades are also feeling the pinch. To quote Karl Denninger " Stop the Looting and Start the Prosecuting" And give us our damn money back as well.
Refco became Man and Man became MFG. So, all the guys on top are related to Refco. They now even have the same layers like there was in the Refco case and it shows more and more, that they all where exately knowing, what they do. MFG was watched by regulators since June
Now the questions come up: Who made them pulling the trigger to transfer money from A to B. Was it may one of the bigger Banks which forced the money or how much are the regulators involved in the final conclusion to sing chapter 11.
In Europe, the word "Gläubigerschutz" means protection for the creditors. In the states, it protects the bad management and supports there doing. Many times they can go and open a new company and then we are again at the begin of this post. Good bless the American laws.
CHICAGO, Nov. 4, 2011 /PRNewswire/ -- As part of the bulk transfer process for MF Global customer accounts and collateral held at U.S. derivatives clearinghouses, CME Clearing, ICE Clear US, The Clearing Corporation, KCBOT Clearing Corp., MGEX, NYSE Liffe US and The Options Clearing Corporation have coordinated to provide clients with further information on the status of their account transfers.
Customers with accounts transferring will receive communications from their receiving firm following the transfers. In addition, beginning this evening, Friday, November 4, 2011, clients are encouraged to send an e-mail message firstname.lastname@example.org, indicating their name, MF Global account number, office code and contact details. The clearing houses will respond to the e-mails by phone or in writing as soon as possible in order to confirm a client's receiving firm. Clearing house representatives will also provide contact information for the receiving firm so that clients can confirm the amount of any transferred customer collateral and positions with the receiving firm.
CME - G
SOURCE CME Group
SAN FRANCISCO (MarketWatch) -- Missing customer funds from MF Global Holdings Ltd. have been found in a custodial account at J.P. Morgan Chase & Co, Bloomberg News reported Friday, citing two people close to the matter. The account contained $658.8 million as of Oct. 31, compared with the $633 million in missing funds from client accounts, according to Bloomberg. J.P. Morgan Chase was listed as MF Global's largest creditor in the firm's recent Chapter 11 bankruptcy filing.
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If this finally shows up to be the true, than I only can say: Shame on any body which is involved in it and hope fully the arm of the law is enough long and resistance against anything to bring any body to jail which deserves it in this case.
If this show up to be true, I think this is very sad. Still I hope people get what they are entitled to though. On the other hand I am so glad that I did not open an account with them.
If true, it reminds me of a illustration Echart Tolle (I think it was him) gave for the ego. He said that the ego is like a cancer tumor which want to become bigger, but it does not understand that eventually it will cause its own destruction. If the MF case in the Forbes article are true I think this illustration fits pretty well on those people.
“If you wish to see the truth, then hold no opinions for or against anything.” - Hsin Hsin Ming
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