Submitted by rss on December 4, 2011 – 1:25am.
From an MFG account holder
No you cannot win. If you are fortunate enough to win, along will come some bunch of bankster thugs and steal your money, as I have experienced recently with the MF Global fiasco.
Don’t know if you have been following this, but contrary to all laws and rules, Obama’s buddy John Corzine and his thugs raided all of the customer segregated cash at MF Global to cover their asshole super-leveraged 6.3 billion bet on believe it or not European bonds (Greece, Ireland, Portugal, Italy and Spain).
The funds were there one day, and in a flurry of madness they pilfered the accounts of over 100,000 customers to post more collateral on their bets (undoubtedly with JP Morgan) and then filed bankruptcy in less than a week. Now upwards of $1.2 billion (out of 5.4B) of customer “supposedly segregated” funds are missing (fuck you #1).
This has been in limbo for over a month now. I got 11% of my money when the whores transferred mine and others’ open positions to a new account, but allowed for only 60% of the required margin to be transferred, forcing everyone to immediately be under water (while they have a pile of inaccessible cash tied up by the trustee), so they either liquidated a bunch of positions or had to put up more margin. (fuck you #2)
The other 89% has been looked up in bankruptcy court until they can figure things out. Supposedly they will distribute enough so you have recovered 65% in the next couple of weeks and a hearing is scheduled on this expedited motion next week; that is, unless JPM tries to screw us out of that as they hold a large debt of MFG and have been appointed to the creditors committee by the bankruptcy judge (fuck you #3).
The judge appointed them to the creditors committee but denied the request of an organization called the Commodity Customers Coalition, representing over 8000 screwed customers, including me (fuck you #4).
Assuming that JPM cannot block this (they shouldn’t be able too–after all it is the customer’s money), then that will leave 35% unaccounted for. Now the issue becomes do we have a super priority over them or are those sleezebags going to try to get their loans, lent for gambling purposes to MFG, on the same level as ours–they will probably try this and that will be Fuck you #5. I could write a book on this and easily exceed 50 fuck you moments.
This is the problem with the whole system. The concept of customer segregated accounts has been in existence for over 100 years, is mandated by law, and there is supposed to be a wall sequestered around them so that the Broker can gamble all he wants with his own money, but he is not allowed to touch the customer’s funds. The CFTC which is supposed to monitor compliance with the segregation requirement has outsourced this activity to the exchange (CME) and in fact they were in the week before and gave them a clean bill of health.
You cannot operate a futures market unless customers post cash collateral; No one will post cash collateral if they must fear that their funds will be stolen; ergo you cannot operate a futures market.
Look for the continued implosion of this industry because the system cannot straighten this out, and for a run on such institutions to start any day. Many of the people affected are farmers and ranchers and small businessmen.
I have not heard boo from Obama, and quite frankly have given up on him. He is nothing more than a shill for the banksters, and surrounds himself with advisors from Goldman Sachs and JPM. Unbelievable that Eric Holder (another incompetent crony) has not to this day prosecuted one criminal from the 2008 meltdown, so the banksters feel they can rape and pillage with impunity.
At this point I have to hold my nose and rely on Fox and the Republicans to rat this story out, which they are starting to do, and will do so not for the good of the markets, but rather for political purposes–to paint Obama as a buddy of that thief Corzine, who remains in hiding.
Just google MF Global for daily coverage on this soap opera.