AuthorTopic: Another MFing Global Cockroach  (Read 6700 times)

Offline JoeP

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Another MFing Global Cockroach
« on: July 09, 2012, 02:17:34 PM »
I suppose there will be many more roaches to come...

NFA shuts PFG down, puts it in liquidation only status, founder attempted a suicide
Jul 9 2012
Posted by Michael Greenberg in Brokers

Another MF Global incident may be looming in the horizon. PFG Best just released this dramatic statement to its clients:

“Due to a recent emergency involving Russell R. Wasendorf, Sr., a suicide attempt, some accounting irregularities are being investigated regarding company accounts. PFGBEST is wholly owned by Mr. Wasendorf. Therefore, the NFA and other officials have put all funds on hold, and PFGBEST is in liquidation-only status with our clearing FCM. What this means is no customers are able to trade except to liquidate positions. Until further notice, PFGBEST is not authorized to release any funds. We will update you as any new procedures are stipulated and with any further information as it becomes available.”

Apparently NFA and CFTC just walked into PFG’s offices and shut the broker down. According to our sources its Founder Russell Wasendorf attempted a suicide last night and some money may be missing from PFG’s accounts.

We’ll continue updating once new information flows in.

http://forexmagnates.com/nfa-shuts-pfg-down-puts-it-in-liquidation-only-status-founder-attempted-a-suicide/

just my straight shooting honest opinion

Offline RE

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Re: Another MFing Global Cockroach
« Reply #1 on: July 10, 2012, 02:37:57 AM »
Latest on the PFG Heist from TD on ZH, apparently at the moment chump change compared to MFG. But then there are those Counterparties of course....

RE

PFG Is Now MFG(lobal) Part 2 As $220 Million In Segregated Client Money Has Just Vaporized
Submitted by Tyler Durden on 07/09/2012 19:17 -0400

Commodity Futures Trading CommissionfixedMF GlobalNone

UPDATE 2: Have no fear though since as recently as January 2012, the CFTC did not find any "material breaches of customer funds protection requirements" at FCMs (firms like PFGBest)

UPDATE 1: Account-holders may not be so surprised to find who is the custodian for the PFGBest FX accounts: none other than huge MFGlobal fans, JPMorgan!

Remember when the entire segregated account fiasco was supposedly fixed in the aftermath of the November 2011 MF Global bankruptcy, and where regulators: the CFTC, the SEC, the CME, and anyone you asked, swore up and down this would never happen again? Turns out that 7 months later, the spirit of MFG has struck again, only this time with one letter switched: it is now known as PFG, as we suggested first 3 hours ago when we broke the story. From the just filed affidavit by Lauren Brinati who is working with the National Futures Association, which in turn has just filed notice prohibiting PFGBest from operating further, and freezing all of its accounts:

•On or about June 29, 2012 PFG reported to NFA that it had approximately $400 million in segregated funds, of which more than $225 million were purportedly on deposit at U.S. Bank
•On or about July 9, 2012, NFA received information indicating that PFG's Chairman may have falsified bank records
•On July 9, 2012, NFA made inquiry with US Bank and learned that rather than the $225 million that PFG had reported as being on deposit at US Bank just days earlier, PFG had only approximately $5 million on deposit at U.S. Bank.
Translation: another $220 million segregated account pillage has just taken place, in the vein of none other than Jon Corzine and MF Global.

The money has now officially vaporized.

It is truly wonderful of the NFA to finally get involved, after PFG's clients have lost about 98% of their cash held with the firm.

In other potential news, a rather prominent New York bank, recently closely associated with marine wildlife, may have just cut its Q2 losses by up to $220 million.

And now for a moment of sarcasm, courtesy of Jack Pearson.

 PFGBEST @PFGBEST PFGBEST’s goal during MF Global’s demise was to get MF Global customers their money back. fb.me/1tPLObJyL
6 Feb 12 ReplyRetweetFavorite

Save As Many As You Can

Offline Surly1

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Re: Another MFing Global Cockroach
« Reply #2 on: July 10, 2012, 03:23:10 AM »
Just amazing. Now the 1% commence their circular firing squad?

Kunstler seems on point this week:

The Drowning Pool


By James Howard Kunstler
on July 9, 2012 8:56 AM

     News that that a swarm of termites deep inside the British banking system have been fiddling the interbank interest rates (LIBOR) for years in order to systematically vacuum a few billion pence off the exchange floors for themselves is the latest blow to the credibility of the global money system - and probably a fine overture to a looming climactic implosion of the gigantic, creaking, smoldering, reeking, duck-taped edifice of broken promises, booby-trapped hedge obligations, counterparty follies, central bank euchres, sovereign flim-flams, and countless chicanes too various, dark, and deep to smoke out. Next, we'll probably hear that Lloyd Blankfein over at Goldman Sachs has been tinkering with the rotation of the earth in order to gain a few micro-milliseconds of advantage in his firm's high frequency trading rackets. After all, back in 2008 Lloyd himself claimed to be "doing God's work."
     In short, world banking is now hopelessly pranged, and I am not at all sure the project of civilization (modern edition) can continue by other means. The impairments of capital formation are now so profound that no one and nothing can be trusted. Not only are all bets off, but nobody will want to make any new bets - and by that I mean venture to invest accumulated wealth (capital) in some useful project designed to sustain human well-being. What remains is just the desperate hoarding of whatever remains in assets uncontaminated by the pledges of others to pony up.
     All this points to a dangerous new period of political history, a deadly Hobbesian scramble to evade the falling timber in a burning house as the rudiments of a worldwide social contract go up in flames. Such is the importance of legitimacy: the basic condition for governance, especially among supposedly free people. You can meddle in a lot of distributory issues - who gets what - but when you mess with the most basic operations of money to the extent that no one is sure what it's really worth, or what it represents, then you are deeply undermining society. This is now the condition that is set to blow up republics.
     Reality dislikes fraud and accounting tricks. Reality is serious about settling scores. Reality eventually intervenes and puts an end to monkey business. What will it be this time?
     Europe and America have been buying a month here, a month there (of a fragile, continuing status quo) on the installment plan. That's what QE, TARPs, LTRO, EFSF, Operation Twist, et cetera, are all about. Think of them as multi-billion dollar (euro) fire extinguishers bought on credit cards. Europe is now completely out of credit to buy more fire fighting equipment. For months now it has been down to whether Germany intends to keep supporting Spain, Italy, Greece, Portugal, Ireland, the French banks (and a few stray forgotten places between the backwaters of the Danube and the Gulf of Finland) without any say in how they manage their allowance. Much as Germany enjoyed the Ponzi heyday of the Euro zone, a big "tilt" sign now flashes ominously over the continent, signaling game over. All fall down. Everybody gets real poor real fast. M. Hollandaise over in Paris has already sealed his fate with his stupid plan to return to "go" on the Ponzi game-board. Merkel's tattered scarecrow of a coalition will blow away in the next national election. The Club Med countries will soon boil up in street-fighting, Holland and Finland will drink themselves to death, and across the channel outsider Britain will fizzle away to a burnt bowl of mulligatawny. That's what the end of the summer looks like to me.
      Over here, in this sorry-ass edition of America, the election will look more and more like a World Wrestling Federation staged dumb-show between two catamite hostages of a foul corporate oligarchy. Imagine that horse's ass Mitt Romney spending the next four months denouncing Obama-care, modeled on his own health care reform in Massachusetts, while Obama pretends he has a grip on an economy where the rule of law is absent due to Obama's own omissions and negligence.
     And if you can't stand that spectacle, just look around at America itself: a wasteland of futile motoring and discount shopping populated by depressed, overfed clowns bedizened with sinister tattoos, pretending to be Star Warriors. No nation ever seen in human history ever laid such a disappointing egg. Only to have it fry on the sidewalk.
"It is difficult to write a paradiso when all the superficial indications are that you ought to write an apocalypse." -Ezra Pound

Offline JoeP

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Re: Another MFing Global Cockroach
« Reply #3 on: July 10, 2012, 05:43:03 AM »
RE,

Yes – vaporization of $220 million of clients’ money is chump change.

I think this part from the update you posted is kinda interesting:

Quote
It is truly wonderful of the NFA to finally get involved, after PFG's clients have lost about 98% of their cash held with the firm.

If this is what futures/forex/alternative brokerage clients can expect going forward, then they must be “feeling lucky” to keep their money in these fine institutions.  I mean really really lucky…super duper lucky.
just my straight shooting honest opinion

Offline JoeP

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Re: Another MFing Global Cockroach
« Reply #4 on: July 10, 2012, 10:28:41 AM »
Surly,

I like the “circular firing squad” idea for the elites.  I’ve always thought Kunstler has a cool writing style and does appear to be on point this week.
 
just my straight shooting honest opinion

Offline Surly1

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Re: Another MFing Global Cockroach
« Reply #5 on: July 10, 2012, 10:34:23 AM »
I like the “circular firing squad” idea for the elites.  I’ve always thought Kunstler has a cool writing style and does appear to be on point this week.

I REALLY like JHK, although I don't always agree with him. He is a trenchant observer, with a keep wit and a nose for the jugular-- which I admire.
"It is difficult to write a paradiso when all the superficial indications are that you ought to write an apocalypse." -Ezra Pound

Offline Surly1

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Re: Another MFing Global Cockroach
« Reply #6 on: July 10, 2012, 10:59:59 AM »
Nothing to see here, citizens, move along...

"It is difficult to write a paradiso when all the superficial indications are that you ought to write an apocalypse." -Ezra Pound

Offline WHD

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Re: Another MFing Global Cockroach
« Reply #7 on: July 10, 2012, 11:26:49 AM »
Turns out, Timmy "Lightning Boy" Geithner knew about the Libor in 2007-2008 when he was the the New York Fed. The headline on the Huffpost now THE ROT SPREADS

http://www.huffingtonpost.com/2012/07/10/federal-reserve-of-new-york-libor-scandal_n_1661268.html

Offline Jaded Prole

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Re: Another MFing Global Cockroach
« Reply #8 on: July 11, 2012, 06:56:50 AM »
This has got to be one of the best threads here. Took me a while to dig it back up.   :emthup: :emthup: :emthup:

Offline Surly1

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Re: Another MFing Global Cockroach
« Reply #9 on: July 11, 2012, 09:03:47 AM »
Hey JP,
that's what you get for not making DD part of your Gooooooooooooooooood breakfast!

Glad you caught up. Time to stick your foot up someone's ass. If you can take time off from re-educating the mouth-breathers in the local paper!

WHD-- it will be interesting to see if any of this catches the attention of anyone remotely connected with law enforcement. Not holding my breath.



"It is difficult to write a paradiso when all the superficial indications are that you ought to write an apocalypse." -Ezra Pound

Offline WHD

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Re: Another MFing Global Cockroach
« Reply #10 on: July 11, 2012, 11:19:02 AM »
Surly,

What law? I feel like going and smoking a fat joint in front of the Minneapolis Fed.

Offline Surly1

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Re: Another MFing Global Cockroach
« Reply #11 on: July 11, 2012, 11:36:29 AM »
That is indeed the question. I remain convinced that none of this would be occurring if Eric Holder were still alive.

Or if the guy who hired him weren't so entrenched in bankster money, although most of it seems to be going to Willard these days.

Firing up a fattie in front of the Fed will only get you hassled or arrested, but it remains an excellent idea.
"It is difficult to write a paradiso when all the superficial indications are that you ought to write an apocalypse." -Ezra Pound

Offline Surly1

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Re: Another MFing Global Cockroach
« Reply #12 on: July 11, 2012, 11:54:18 AM »
From Washington's Blog via ZH:

U.S. Gave Tens of Billions to Libor-Manipulating Banks ... Even AFTER Learning about the Manipulation
George Washington's picture

Submitted by George Washington on 07/11/2012 12:51 -0400
http://www.zerohedge.com/contributed/2012-07-11/us-gave-tens-billions-libor-manipulating-banks-even-after-knowing-about-manip

You know that Libor is the largest economic scam in world history and the largest insider trading scandal ever.

You know that the Federal Reserve knew about the manipulation by August 2007. And see this.

But did you realize that the Fed and Treasury threw billions of dollars of taxpayer money at Barclays and the other Libor-manipulating banks after they knew about the manipulation … and did nothing to stop it?

As Richard Eskow notes:

    Thanks to the GAO audit of the Fed — an audit which it vigorously resisted — we know that Barclays was the fifth largest recipient of emergency loans. Bailout loans for Barclays came to $868 billion. That means that Barclays probably made billions off the reduced interest rate alone, courtesy of the American people.

    Those loans were granted between December 2007 and July 2010. That means the Fed was doling out billions to Barclays after it learned that the bank was lying about its LIBOR rates.

Indeed, all of the probable Libor manipulators – including Citi, JP Morgan Chase, Bank of America, UBS, RBS and Deutsche – were huge recipients of bailout money courtesy of the American taxpayer:


Table 8: Institutions with Largest Total Transaction Amounts (Not Term-Adjusted) across Broad-Based Emergency Programs (Borrowing Aggregated by Parent Company and Includes Sponsored ABCP Conduits), December 1, 2007 through July 21, 2010
Bailout U.S. Gave Tens of Billions to Libor Manipulating Banks ... Even AFTER Learining about the Manipulation


Source: GAO analysis of Federal Reserve System data.


No, the criminals haven’t paid back the bailout money, American taxpayers are still bailing them out and helping them grow bigger, and the banks are committing more fraud every day.

The government isn’t doing anything to rein in the big banks … no wonder people are starting to call for bankers’ heads.

"It is difficult to write a paradiso when all the superficial indications are that you ought to write an apocalypse." -Ezra Pound

Offline JoeP

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Re: Another MFing Global Cockroach
« Reply #13 on: July 11, 2012, 02:37:34 PM »
Quote from: WHD
I feel like going and smoking a fat joint in front of the Minneapolis Fed.


Count me in!
 
just my straight shooting honest opinion

Offline Surly1

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Re: Another MFing Global Cockroach / Libor explained
« Reply #14 on: July 12, 2012, 08:41:03 AM »
In a picture.
Source:http://www.accountingdegree.net/numbers/libor.php

"It is difficult to write a paradiso when all the superficial indications are that you ought to write an apocalypse." -Ezra Pound

 

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