MF Global Looted Accounts Via Internal Bank Run

[anonymous]

Days before the doomed financial broker filed for bankruptcy, MF Global conducted “unexplained wire transfers” that led to a $900 million shortfall in client funds, leading customers like Gerald Celente to learn that their accounts had been looted and setting the precedent for internal bank runs as more big firms go bust.​

According to Bloomberg, “Examiners from CME Group Inc., the world’s largest futures exchange, found unexplained wire transfers at MF Global Inc. and a $900 million shortfall in client funds during the weekend the failing broker was talking with possible buyers, a person briefed on the matter said.”​

CME noticed the missing funds on October 30, but MF Global didn’t inform the Commodity Futures Trading Commission until the day after, suggesting that the transfers were made, “in a manner that may have been designed to avoid detection,” according to CME.​

The suspicious cash movements are now being probed by the U.S. Justice Department.​

MF Global trustee James Giddens said in a court filing yesterday that customers would get back 60 per cent of their account funds, prompting fury amongst clients, many of whom used their accounts for business collateral and living expenses.​

Although individuals were burned by the broker’s downfall, larger clients were protected from the fallout because they had the miraculous fortune of withdrawing all their funds just weeks before the collapse.​

“Both the Commodity Futures Trading Commission and the Chicago Mercantile Exchange were charged with overseeing MF Global, their clearing member. If we are to believe them, they had no idea of any difficulties within the firm before customer accounts went missing just a few days before the collapse. But someone clearly knew of the cratering positions and imminent collapse of MF Global, as billions of dollars of accounts were “coincidentally” withdrawn,” writes Huffington Post’s Daniel Dicker, noting how funds in accounts owned by the billionaire Koch brothers were withdrawn just in time, clearly suggesting that big players got a “heads up” that MF Global was going down.​

Although the collapse of MF Global was assured when it came to light that the broker was heavily exposed to the European debt crisis, causing the broker’s stock price to plummet, Fox Business reports that numerous circumstances indicate the downfall was in the works weeks before, drawing attention to the fact that employees didn’t receive commissions for the third quarter and were fired two weeks before the firm filed for bankruptcy.


One of the victims of the scandal, popular trends forecaster Gerald Celente, joined Alex Jones on Infowars Nightly News to detail how a six figure sum was looted from his gold futures account, which, unbeknownst to Celente, was being held under the auspices of an MF Global subsidiary.​

As the Financial Times reported, the hundreds of millions in looted funds from customers’ accounts later “turned up at JPMorgan Chase, the failed broker-dealer’s custody bank.”​

Despite his account being fully funded, Celente was hit by a margin call as Chapter 11 trustees stepped in to take control of his funds, leaving his account empty thereby closing his positions and preventing him from taking physical delivery of his gold which was due in December. When Celente rejected demands to transfer more money into the account it was hastily closed.​

Speaking with Alex Jones, Celente expressed his fury at the move, labeling it an example of “economic martial law,” and speculating that the real reason for the looting was because the broker never had the gold and silver to deliver in the first place.​

Celente encouraged Americans to cash out of all gold ETFs and withdraw their funds from the bank because “they are going to steal all our money”.​

The trends forecaster savaged MF Global CEO Jon Corzine, labeling him a “cheap SOB” who was responsible for the collapse because of his using customer funds to bet on losing European bonds.​

“How come he’s not in jail, because he’s one of the white shoe boys from the Goldman Sachs crowd,” Celente fumed, going so far as to say Corzine “should have died” in his recent car accident.​

Celente said that he had sufficient funds stored in a safe place that could not be looted and that if anyone did try to steal them and threaten his life he wouldn’t hesitate to ‘blow their brains out’.​

Celente reiterated his plea to Americans to withdraw all their money from the banks and leave only operating capital in their accounts, warning that “the merger of state and corporate powers” has brought “fascism” to America.


All links within article are active.
I hope you guys are finally seeing this.

Update: MF Global trustee moves to return $520 million in client cash

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[tekk]

bump!!!!....

 

[anonymous]

Even though no one reads this, I'll add to this anyway cuz of the severity of it. All blue text are clickable links.

Celente: CME Did Not Guarantee Oversight in MF Global Scandal/

Bloomberg reports today that CME, the world’s largest futures exchange, may face liability in the MF Global scam that has bilked customers out of nearly a billion dollars. Back on October 30, it was reported that CME noticed a shortfall in MF Global’s segregated client funds, but did not immediately report it to the Commodity Futures Trading Commission, the CME Group’s regulator.
CME oversees its futures-broker members such as MF Global under its authority as a self-regulatory organization and is required to report irregularities immediately.
CME’s behavior is especially suspect after $600 million fell in a back hole when it was placed in an account with Wall Street giant JP Morgan following the collapse of MF Global.
As we noted today, it is very suspicious that weeks prior to MF Global’s fall billionaire investors like the Koch brothers had the miraculous foresight to withdraw all their money, prompting accusations that big players got a ‘heads up’ in advance of the firm’s collapse.
CME is now in the process of damage control. Earlier today, the organization issued a press release stating “that it followed CFTC requirements and CME Rules and procedures in reviewing MF Global’s segregated funds statements and coordinating that review with the CFTC” and characterized reports that it was negligent as “inaccuracies.”
Trends forecaster Gerald Celente, who lost gold futures at MF Global in the six figure range, has discovered a video of CME Executive Chairman, Terrence Duffy, holding a press conference last year in which he unequivocally states that no “customer has ever lost a penny as a result of a clearing member default that CME Group.”

Duffy admits that CME is the “guarantor of every transaction that happens in our markets [and] we have to guarantee the performance of each and every one of these contracts.” Obviously, this was not the case with MF Global and its clients.
The CME boss claims in the video that the futures and options markets provide “a place of shelter for the most damaging parts of the economic crisis” and “function flawlessly, providing liquidity, transparency and central counterparty clearing services that continue to work throughout the crisis,” a claim that turns out to be entirely fallacious, as Celente and others discovered after MF Global went belly up.
Duffy proudly admits that CME is “the guarantor of every transaction that happens in our markets” and guarantees “the performance of each and every one of these contracts which means facilitating the transfer of $800 trillion of risk. To do this, we hold more than $100 billion of collateral to support the transactions that are being done on our markets.”
However, as Gerald Celente notes in an email sent to Infowars.com, not “only have customers lost money, they’ve lost their futures positions. Secondly, and more important, CME did not honor its ‘guarantee’” to MF Global’s clients.
“This is big news that nobody has uncovered, and I’d like to break it with Alex,” Celente writes.
It is not certain at this point if CME’s role in the scandal will be highlighted. Authorities are attempting to track down MF Global client money lost in JP Morgan’s black hole and two “aggressive and high-profile federal prosecutors,” according to the Wall Street Journal, are using subpoenas to gather MF Global records.

 

[anonymous]

Eyes are opening and the bubble is seeping.

Please read the whole article that is linked.

“The Entire System Has Been Utterly Destroyed By The MF Global Collapse”

BCM Has Ceased Operations (source)

Posted by Ann Barnhardt – November 17

Dear Clients, Industry Colleagues and Friends of Barnhardt Capital Management,
It is with regret and unflinching moral certainty that I announce that Barnhardt Capital Management has ceased operations. After six years of operating as an independent introducing brokerage, and eight years of employment as a broker before that, I found myself, this morning, for the first time since I was 20 years old, watching the futures and options markets open not as a participant, but as a mere spectator.
The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.

There is no market. There is a perception market. - commenter on website