Author Topic: The story of MF Global should be a heads up as to where the US is headed.  (Read 23525 times)

DrasticDad

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http://english.economicpolicyjournal.com/2012/03/mf-global-roundup-louis-freeh-feeling.html

Basically, the link I have posted shows one part of how corruption permeates the US financial system.

If you have not heard of MF Global - it was a brokerage house that went under, that comingled customer funds with their own funds, about 1.6 billion dollars in customer funds initially missing. No indictments. Press releases to the effect the money "vaporized."  (untrue, the money went somewhere, probably most of it went to JP Morgan on margin calls).

At this time - approximately 72 cents on the dollar of average customer payouts, according to the trustee.

Many of these customers were farmers that hedged their production. Some were traders, some did business with other brokerages that cleared their trades thru MF Global. Gerald Celente lost a sizeable position where he was going to take delivery on gold futures.

Jon Corzine - well connected former Governor of NJ. No charges brought. He says he "didn't know about daily activities" yet he traded one of the largest accounts for MF Global actively, and it was his trades that took the company down. So, for stealing 1.6 billion of the customers money - they want permission from the court to pay bonuses!

Video by William K. Black is well worth watching - he knows what is going on.

A lot of people know and make public the laws that have been broken, credentialed people such as William K Black, Janet Tavokoli, RC Whalen - a list of people have made public criticisms that the mainstream media will not follow up on, and that no prosecutor will act on. Instead, they expect to be  given bonuses. And why not, the banks had to be bailed out, and they then gave bonuses!

Sadly, I now believe that the US is basically an oligarchy. Please, no Democrat or Republican slanted comments on this - they both - with a few notable exceptions - line up with the oligarchs. We have got to drop the "two party" slant to our thinking and realize that it is not Republicans or Democrats running the country - it's the oligarchs.

If you are unaware of the MF Global situation , please do a search and some reading. If you do that, you may open your eyes as to what the US has become.

There's an old saying. There never is just one cockroach.

Got money in the markets? So did the customers of MF Global..





dogboy

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My question to you is how long can 'The Morgue' keep the price of PMs down? All the way to November elections? Or could we be seeing the beginning of the end of the Comex Silver/Gold paper market?
« Last Edit: April 07, 2012, 01:29:02 PM by dogboy »

DrasticDad

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could we be seeing the beginning of the end of the Comex Silver/Gold paper market?

Could be, but probably still a way off.

There's an interesting video of Kyle Bass where he talks about face to face discussions with Comex warehouse facilities about, what if you don't have enough metal on hand for people to take delivery? their response was "price resolves everything" so Bass said "as a fiduciary there is no question but for me to take physical delivery ( at the time of purchase and avoid warehouse receipts as proof of his position) - He was acting on behalf of a major university in Texas.

Fwiw, as a believer in PM for decades - I rarely see posts or comments about the fact that years back on the London Metal Exchange, they actually ran out of Nickel, and were unable to meet calls for delivery. They essentially gathered all the numbers, told people what percentage of their position they would get, what the price would be - take it or leave it. It is reasonable to assume that there is equivalent Language in the fine print for everyone dealing with Comex.

As a practical matter, I think Bernanke and crew, and all of their bankster buddies will go to great lengths to keep Comex the place to be for gold and silver. They will have input as to margin that must be posted, position limits, etc., and be able to do all they can to keep gold/silver down

littleman

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Like everybody else I'd like to welcome you DrasticDad.  I just finished Boomerang by Michael Lewis which did a superficial overview of how cheap credit and now the debt crisis has affected various parts of the world.  It got into Greece, Iceland, Germany and (oddly enough) my own back yard here in California.

I've been ranting for a long time about how America (& the UK) has lost most of its industrial base and has instead lived by credit and unsustainably cheap imports.  I know it isn't exactly the same topic, but I feel like it is related.  Common sense would argue that true investment would build up the strength of a nation, but much paper wealth has been made by mathematical manipulation of debts that add no real value to society as a whole.

I might be naive, but I'm somewhat hopeful, I feel like eventually  we'll be better off after the (complete)  credit bust.  We'll be more self-reliant as a people, the weaker dollar will mean less imports and an economy which is based more on real production.  I just hope the pain from here to there isn't too bad.  Restoring Glass-Steagall and breaking up anything too big to fail would help.

DrasticDad

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Thanks for the welcome ;D

Sadly, I do not share your hopefulness.

Our country and our financial system and country are being run by the Robber Barons of today.

You would be right to be hopeful if our country was run under the rule of law and with integrity. Unfortunately, that is not the case.

It has now come out that Corzine directly ordered the transfer of funds to JPM

http://www.bloomberg.com/news/2012-03-24/mf-global-s-corzine-ordered-funds-moved-to-jp-morgan-memo-says.html

from the link

Quote from: the link
“Ms. O’Brien wrote in an e-mail that the transfer was ‘Per JC’s [Jon Corzine’s] direct instructions’

Barry Zubrow, JPMorgan’s chief risk officer, called Corzine to seek assurances that the funds belonged to MF Global and not customers. JPMorgan drafted a letter to be signed by O’Brien to ensure that MF Global was complying with rules requiring customers’ collateral to be segregated. The letter was not returned to JPMorgan, the memo said.

This not only indicates that Corzine should be indicted, but that JP Morgan was aware that the money was most likely from segregated funs and as such should be returned to the account holders (clawed back due to it’s being illegally transferred)

The reason I began this thread with the post about MF Global, is because It clearly shows that the Robber Barons are above the law, and the oligarchs are running the country.

If you see indictments and convictions in the MF Global matter, and money clawed back from JP Morgan,  and returned to account holders I will then agree that there is reason for hope.

Instead, the trustee is being asked that bonuses to be paid to MF Global muckety mucks.




dogboy

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Exactly.

I can't really add much to this.  This is how I see it too.  Ultimately it's all coming down to capitalism devouring itself - the greed for Money - playing itself out right here in front of us, as the US tries to leverage everyone into the US Dollar, and prevent another Reserve Currency, or PMs, from taking over the world economy. 

And right now, it looks like we are winning, but we are actually losing big ground.  And by the time the normal Joe on the street figures this out, he's going to be utterly broke, and all hell will break loose at many levels as things break down. We are in transition right now.  The news is all slanted and about ratings. Everyone will cling to it until their is no way to deny it.

This memo is important because it substantiates that a huge crime took place, in unambiguous terms.  The defense was that the investor's money got 'lost', or 'misplaced'; that no crime was committed, and in fact, they should award themselves very large bonuses for themselves, because all the other guys did... the people think the govt is somehow paying the bill, when in fact they are just printing more money, making the money in the people's hands just worth less, instead of trying to actually take bills away from the masses.  It's so much simpler to steal value over time.  No one seems to notice. It's so gradual. It's so big. It's right there in front of our face and people still can't see it.


I, Brian

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Sadly, I now believe that the US is basically an oligarchy.

I think having George W Bush as "President" was a pretty big clue. :)

dogboy

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I see more and more articles on this every day; they say it's the next Watergate.

Here's a link from Bloomberg:
http://www.bloomberg.com/news/2012-03-23/mf-global-s-corzine-ordered-funds-moved-to-jpmorgan-memo-says.html

Quote
"Jon S. Corzine, MF Global Holding Ltd. (MFGLQ)’s chief executive officer, gave “direct instructions” to transfer $200 million from a customer fund account to meet an overdraft in a brokerage account with JPMorgan Chase & Co. (JPM), according to a memo written by congressional investigators.
Edith O’Brien, a treasurer for the firm, said in an e-mail quoted in the memo that the transfer was “Per JC’s direct instructions,” according to a copy of the memo obtained by Bloomberg News. The e-mail, dated Oct. 28, was sent three days before the company collapsed, the memo says."

[...]

"Barry Zubrow, JPMorgan’s chief risk officer, called Corzine to seek assurances that the funds belonged to MF Global and not customers. JPMorgan drafted a letter to be signed by O’Brien to ensure that MF Global was complying with rules requiring customers’ collateral to be segregated. The letter was not returned to JPMorgan, the memo said."

[...]

"Corzine, 65, in testimony in front of the House panel in December, said he did not order any improper transfer of customer funds. Corzine also testified that he never intended a misuse of customer funds at MF Global, and that he doesn’t know where client funds went."


DrasticDad

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the Mainstream Media doesn't give it justice - Russia Times does a super job.

Janet Tavikoli has a superb grasp and states the truth eloquently here

Financial Oligarchy and the New Robber Barons w/Derivatives Guru Janet Tavakoli

http://www.youtube.com/watch?v=wTWKT3pZgT8&feature=player_embedded#!

DrasticDad

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I think having George W Bush as "President" was a pretty big clue. :)

You are only part right. The parts you missed are Clinton and Obama.

The oligarchs are both Democrat and Repulbican.

To say or imply that someone from one party was indicative of the problem is giving the other party an undeserved free pass.