Do you think Martin Glenn will now rule in favor of MF Clients, or the NY banksters!?!
MF Global and virtually all of its Wall Street counterparts have been circumventing U.S. securities rules at the expense of their clients for decades, and people like Judge Martin Glenn is by no means about to change the game or expose what has been really taking place. Client funds were by no means just inadvertently misplaced or gobbled up in MF’s dying hours as is being desperately portrayed by the NY media once again covering up the truth. These were losses created by manipulation of brokerage rules that allowed for the wholesale acquisition and sale of client funds through re-hypothecation.
I was aware of this for decades and purposefully purchased Fannie Maes, which were NOT AAA and could not be re-hypothecated by either posting them as collateral at the exchanges or in the REPO market. MF Global, as other NY firms, used clients’ funds to finance an enormous $6.2 billion Eurozone repo bet that was approved personally by Corzine. What this has amounted to is any win was to MF Global’s benefit, while the losses belonged to clients.
That client money should be taken back from the banks it was used for trading. In basic law, if someone steals your car, repaints it, and resells it, once found, you still have the title. In this case, MF Global NEVER had TITLE to those funds and they have to be returned to the clients and the counter-party bankers as a fundamental matter of law cannot keep them.
Giddens and several federal authorities are investigating the cause of the shortfall but they are not likely to reveal the truth of what has become standard practice in trading with other people’s money. The nightmare was customer accounts with open positions that became frozen. While Kobak is being optimistic that total recoveries could be as much as 70 percent of accounts, he will not clawback funds from other brokers or banks letting them keep their illegal gains.
In the instant case of MF Global, there is a legal loophole in international brokerage regulations that is time to explain before you leave a dime in ANY New York operation. You should DEMAND from any broker a signed agreement that they will NOT invest your cash or assets in any market, exchange, or transaction where your property is up for grabs based upon their covert use of your money!
Click the PDF below for the rest of Martin Armstrong's rant on MF Global
MF Global Disaster Trading with other people's money
Collapse of the world's financial system
