Tuesday, March 13, 2012

MBF Clearing Corp Accused by CFTC of Running a 'Corzine' Scheme

Reuters is reporting that the CFTC has just announced a suit against Mark Fisher's MBF Clearing Corp, accusing Fisher's firm of not stealing enough client funds...depositing $30-$90 million of client funds in unsegregated accounts.
This farce is a pathetic joke.  We documented how rehypothecation is an issue at nearly every firm in the US.  Nearly 5 months after MFGlobal sole $1.5 BILLION in segregated client funds, not a single charge has been filed against Jon Corzine.  Yet if Corzine's SOP is followed only on a miniature scale (and the funds aren't transferred into JPM's slush fund, just sitting in a non-segregated account for standard rehypothecation purposes) , the cops come running to the rescue to prove there is justice in the land.  Please.
Let us know when the CFTC files suit against anyone named Corzine or Dimon and we'll give them an an 'atta-boy'.  Until then this is a circus show to convince the public that the CFTC actually enforces fraud.

Mark Fisher's recent appearance on CNBC: