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The servers are buried right now, but the FT is reporting that the Australian Stock Exchange (ASX) has closed it’s commodity exchanges “until further notice” due to the large number of contracts held by MF Global’s clients.
The firm apparently tapped customer funds to try and save itself. Every open account’s current balance, held by that firm, is now open to question. The collateral call by counterparties, last Thursday, since we now can see that that was what was going on, a massive liquidation of positions to satisfy collateral needs, has frozen every account and position across the globe.
Here’s the link to the FT story, and here’s the customer theft story:What began as nearly $1 billion missing had dropped to less than $700 million by late Monday. It is unclear where the money went, and some money is expected to trickle in over the coming days as the firm sorts through the bankruptcy process, the people said.
But regulators are examining whether MF Global diverted some customer money to support its own trades as the firm teetered on the brink of collapse. If that was the case, it could violate a fundamental tenet of Wall Street regulation: Customers’ money must be kept separate from company money.This is going to get very, very big.
Only real press, not behind a firewall, that I can get to, so far…
More here: Regulators Investigating MF Global for Missing Money. MF Global was run by former New Jersey Governor, Jon Corzine.
Flashback!
A similar benefit was held in April at the home of the wife of Jon Corzine, the ex-governor of New Jersey and former chief executive of Goldman Sachs. Both events are part of a concerted effort to lure deep-pocketed donors back to Mr. Obama’s corner for his 2012 re-election campaign.
And check out all the ways Corzine is connected to Democrats and Obama.
And of course Greece is going to have a referendum on whether to go officially bankrupt. So good news all around.
Anyway I blame Bush.
Bottom line is never invest money with a guy who’s too flippin dumb to fasten his seat belt.
Blame the vagaries of the ‘invisible hand.’ The relevant question here indeed is, “where’d the money go?” Think of it as the ‘bottomless pit.’
New Jersey? I find that surprising. No one on the board is from Chicago?
Sure glad Obama passed the new laws to whip Wall Street into shape.
Once again the vaunted and many regulators/regulations, which the U.S. Congress insists must be instituted to protect investors have succeeded in their mission – fail! Why not just leave the market unfettered by imbiciles and regulators and the market will discipline the guilty.
Kate isn’t kidding that this is going to be very, very big.
MF Global is the leading broker on Nymex and Comex (energy and metals traded) and the 2nd largest on CME and 3rd largest on the CBOT (global grain contracts).
Jon Corzine, Democrat, former CEO of Goldman Sachs. I wonder how much he’s contributed to Obama? And how much he’ll get in a special bailout?
“Why not just leave the market unfettered by imbiciles and regulators and the market will discipline the guilty.”
For the same reason we don’t get rid of all police officers just because they’re unable to deter or prevent every last crime.
And considering it’s regulators who are currently examining whether MF Global diverted some customer money for their own purposes, then ask yourself: if we’d gotten rid of all the regulators, then who exactly would be available to do the investigating now?
You will find the information on Corzine’s rather lenghty list of achievement’s and a list of the biggest losers with the MF Global bankruptcy at:
http://globaleconomicanalysis.blogspot.com/
If you want to find the missing money look in the Obama for President 2012 account.
See how many more stories you get about MF Global from google news if you leave out the search term ‘Democrat’.
Highly leveraged, betting on Eurozone debt??!! The behaviour of these financial “wizards” over the past thirty years from third-world debt crisis to Argentine default to junk bond fiascos to housing bubbles to Eurozone Greek, Portuguese, Italian debt crises has forced me to rethink my opinion of the overweight chain smoker with the eight cards in front of them at the BingoRama. Maybe investors should be putting their money with the latter — proven track record, predictable rate of return or loss over time, and for the cost of a couple of rum and cokes, reasonable brokerage fees.
Ok, Great, I bet MSNBC has got this story all wrapped up.
God I hope MF Global took Bailout money.
Does anyone know the where-a-bouts of one Jon Corzine (D) Ex- Gov of NJ ?
So, WTH were MF Global and Jon Corzine doing exactly ?
I mean, were they buying Eurozone countries debt to profit from their collapse, or, were Corzine/MF gona profit under a European Bailout ? It does seem kindof convenient that MF/Corzine would purchase Eurozone Countries debt and then President Obama goes on a Campaign Tour critizing the European Union for not bailing out their members.
Either way, if MF/Corzine couldn’t profit from the collapse of these Eurozone Countries they at least fiqured out a way to steal their investors money.
Cut off their heads.
MFGlobal was a massive player. There are a lot of people trying to figure out how this effects their positions and hedging.
I don’t think anyone has a real handle yet on how potentially devastating this could be.
Will Soros be found hiding in a spiderhole when this is all said and done?
You all are missing the point here!
The Goldman Sachs mob are collapsing the system, so they can get control of the world-wide system.
When you connect the dots, they all lead back to Goldman Sachs / Obama / Soros / The Fed and The UN.
This is nothing more than money confiscation through the banks, the trading exchanges and through taxes / government bailouts.
How long before it will be illegal to own gold and the confiscation begins, just like it did during the first depression? This is nothing more than The Great Depression II. But this one will be on steroids.
How to lose $39.7 billion of other peoples money in 19 months and still get paid.
By: Jon Corzine
Just another crooked Democrat. Likely Obama will protect him.
Well Davenport, the answer is very simple. If Moral Hazard (look it up) was allowed, by your
“regulators”, they would not be “too big to fail”.
The market would inflict the necessary punishment and with expeditious haste!
Davenport-
The Manhattan DA would investigate, as they have many previous fraud cases.
Looks like Uncle Guido has some work to do in New Joisey. Some customers object to a company using their money for personal problems.
glacierman
Good post. I have only one objection. You left out Fanny may & Freddy mack with the public Union hacks.
You got the “Governor” part right, but the illustrious Mr. Corzine was a United States Senator as well. And was expected to end up in a high position with the Administration in the near future.
SSDD
If this was a Republican, the MSM would be agog for weeks, on the hour eery hour, regarding his connections, liaisons, relationships, etc with every Repub out there.
But it’s a DemocRAT….hmmm, driveby, nothing to see here….move on, look for a ‘real’ issue……
Rev,
Freddy & Fanny were just the vessel to carry the goods.
The Unions are Mafioso, but the situation in Italy will have “da boys” running for cover soon enough.
The populace won’t be putting up with union whining, stomping of feet and holding of breath until they get their way like they have in the past. A punch to the mouth and boot to the butt as they are pushed out the door is the best they can expect.
Better days are ahead in my opinion. Let’s get on with it already, lets get this collapse of the house of cards done.
Corzine is a Deep Capture raider recently sent in to rob venerable MF.
GoldSachs is the modern Dutch East India Company. The financial arm of a statosphere class industry that operates beyond borders, thus beyond laws. Nations like the US are just a place to do business.
Funny, the unions are joining OWS for a ‘general strike’ right on time. Getting ready for a little street action. See Greece, Italy, and the Arab Spring.
Communities getting ‘organized’ for the 2012 re-election of the key man, ya think?