MF Global Commodity Customers Must Be Paid First, CFTC Says

[JohnQPublic]

MF Global Commodity Customers Must Be Paid First, CFTC Says (http://www.businessweek.com/news/2012-01-19/mf-global-commodity-customers-must-be-paid-first-cftc-says.html)



January 19, 2012, 10:34 AM EST


"

By Linda Sandler
(Updates with excerpt from filing in third paragraph.)
Jan. 18 (Bloomberg) -- MF Global Inc. commodity customers must be paid before all other claimants, including the bankrupt parent company, according to the Commodity Futures Trading Commission.


Court papers by the trustee for MF Global Holdings Ltd., Louis Freeh, contain “errors and misstatements of law” in arguing that commodity laws, which require that customers be “made whole” first, don’t apply to brokerage liquidations, the regulator said in a court filing today. Freeh, representing the parent company creditors, has said money due to them shouldn’t be “diverted” to customers.
If Freeh was right, “the senseless result would be to render inapplicable the key regulations of the Commodity Futures Trading Commission in the largest commodity broker bankruptcy in U.S. history,” the CFTC said. The result would “strip” customers of a remedy, after they entrusted their assets to the brokerage relying on rules for segregating customer money, it said."

[JohnQPublic]

I don't know if Gerald Celente gets his gold, but he may at least get cash.

[MAGNES]

JPM is involved here in more ways than one.

They are the main creditor that wants the clients money.
WRAPUP 1-CFTC commissioner views MF Global darkly | Reuters (http://www.reuters.com/article/2011/11/15/mfglobal-idUSN1E7AE1PN20111115)
" While it charts its course through bankruptcy, MF Global is surviving on $8 million in cash that had been collateral for JPMorgan Chase & Co , the agent for a $1.2 billion syndicated credit line."


Who Gave Permission To A Bankrupt MF Global To Sell Italian Bonds To JPM At A 5% Discount To Market Value? | ZeroHedge (http://www.zerohedge.com/news/who-gave-permission-bankrupt-mf-global-sell-italian-bonds-jpm-5-discount-market-value)

MF Global Transfer Draws Scrutiny - WSJ.com (http://online.wsj.com/article/SB10001424052970204058404577110761665602648.html)

"Investigators on the hunt for missing customer money from MF Global Holdings Ltd. are scrutinizing about $200 million moved to a company account at J.P. Morgan Chase & Co. three days before the securities firm filed for bankruptcy protection,"

more gems
Claim: Clinton Collected $50K Per Month From MF Global - HUMAN EVENTS (http://www.humanevents.com/article.php?id=47938)
heads up was given to big clients, they buried MFG
Daniel Dicker: The Koch Brothers and MF Global - Friends to the End (http://www.huffingtonpost.com/daniel-dicker/the-koch-brothers-and-mf-_b_1089906.html)

[FreeEnergy]

Not the last time. Let's see... JPM or Bank of England were creditors, Mitty Romney sold them Bain Capital, and he's now a presidential candidate. What do you know...

[osoab]

What the CFTC says and what will end up occurring are two completely different things.


The CFTC was responding to a judge’s instructions to regulators and the trustee to file briefs on the rules governing the brokerage’s distribution of assets. Creditors of the parent company also have been clashing with brokerage customers as each side seeks more money for itself.

[Twisted Titan]

hard currency

hard currency

hard currency

[Neuro]

Not the last time. Let's see... JPM or Bank of England were creditors, Mitty Romney sold them Bain Capital, and he's now a presidential candidate. What do you know...

Nest of vipers! Even when they do it in broad daylight albeit hidden by a thin smokescreen provided by media, they get away with all the account holders cash and securities. The thieves need to be strung up in lamp posts!