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Post by Dave-ECIA on Nov 11, 2011 15:08:27 GMT -5
Haven't talked a lot about it on here but it's about time.....
I've got some skin in the game here and those MF'ers have a considerable amount of my $$$ tied up and won't release them. Could be MF, sounds like a circuit court judge needs his balls adjusted, whatever.
Just got off the phone with the broker and an update. One of his largest clients has spent the week preparing a filing in federal court to force the release of all client money. Should be filed on Monday unless those MF'ers and the judge play ball over the weekend. The suit will ask for the release of their money, and with that, all client equity currently frozen.
Watch for fireworks. Broker said the client is large enough that it should make the national news.
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Post by linsal on Nov 11, 2011 17:34:41 GMT -5
Please keep us posted. As a dairy guy, I've had my suspicions about the markets in Chicago...I feel for anyone caught up in this MF Global mess...now the employees have been fired with a trustee being appointed.
I predict that there are going to be lawyers who get paid before clients do...
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Post by jrtheoriginal on Nov 11, 2011 19:02:35 GMT -5
Haven't talked a lot about it on here but it's about time..... I've got some skin in the game here and those MF'ers have a considerable amount of my $$$ tied up and won't release them. Could be MF, sounds like a circuit court judge needs his balls adjusted, whatever. Just got off the phone with the broker and an update. One of his largest clients has spent the week preparing a filing in federal court to force the release of all client money. Should be filed on Monday unless those MF'ers and the judge play ball over the weekend. The suit will ask for the release of their money, and with that, all client equity currently frozen. Watch for fireworks. Broker said the client is large enough that it should make the national news. Dave don't hold your breath Those guys are backing into evry nook and cranny they can. and now CME group is gonna kick in some money to grease the skids. This is so systemic the whole deal is going down! |
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Post by Dave-ECIA on Nov 11, 2011 19:52:00 GMT -5
CME kicked in 300M this afternoon. The added liquidity should help, but somebodies balls still need to be adjusted. The fricking judge assigned to this obviously doesn't understand the concept of segregated client funds. ....and I agree the MF'ing rats are scurrying to find cover once the lights are turned on.  |
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Post by Dave-ECIA on Nov 16, 2011 18:40:36 GMT -5
www.reuters.com/article/2011/11/10/us-mfglobal-clawback-idUSTRE7A91DE20111110This is just one of the reasons I think we may be screwed. Even though I had funds still with those MF'ers, I pulled money out for other reasons in August. Well, me and 1.5 billion other dollars. With Corzine cozy with the current administration, they'll protect his ass even if it costs people like me some coin. Fortunately, I was playing with "house money" and had pulled out my original funding. The CME is still scrambling, but it sounds like they are close to allowing us to "leverage" the same number of dollars in an "emergency" account if we need to hedge or close trades. The tentacles are showing more and more as the water level lowers. CFTC is coming out and saying something nefarious and likely illegal led to the situation.
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Post by wheatfarmer on Nov 16, 2011 20:42:20 GMT -5
No sh!$ Sherlock!! Now that takes one hell of a lot of less than normal brain cells to come up with that conclusion. Glad I wasn't in that group as that would be a loss I wouldn't have expected to have to cover. |
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BKN
Hired Hand
Posts: 209
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Post by BKN on Nov 17, 2011 15:52:47 GMT -5
This was just posted on the NAT market site.
Dear Rush Limbaugh . . .
Posted by Ann Barnhardt - November 17, AD 2011 12:59 PM MST
Apparently Rush just read my "Going Galt" shutting-down-the-brokerage letter. I am humbled. Wow. And he thinks I'm a dude. :-)
Thanks to ZeroHedge.com for posting it.
BCM Has Ceased Operations
Posted by Ann Barnhardt - November 17, AD 2011 10:27 AM MST
Dear Clients, Industry Colleagues and Friends of Barnhardt Capital Management,
It is with regret and unflinching moral certainty that I announce that Barnhardt Capital Management has ceased operations. After six years of operating as an independent introducing brokerage, and eight years of employment as a broker before that, I found myself, this morning, for the first time since I was 20 years old, watching the futures and options markets open not as a participant, but as a mere spectator.
The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy.
The futures markets are very highly-leveraged and thus require an exceptionally firm base upon which to function. That base was the sacrosanct segregation of customer funds from clearing firm capital, with additional emergency financial backing provided by the exchanges themselves. Up until a few weeks ago, that base existed, and had worked flawlessly. Firms came and went, with some imploding in spectacular fashion. Whenever a firm failure happened, the customer funds were intact and the exchanges would step in to backstop everything and keep customers 100% liquid – even as their clearing firm collapsed and was quickly replaced by another firm within the system.
Everything changed just a few short weeks ago. A firm, led by a crony of the Obama regime, stole all of the non-margined cash held by customers of his firm. Let’s not sugar-coat this or make this crime seem “complex” and “abstract” by drowning ourselves in six-dollar words and uber-technical jargon. Jon Corzine STOLE the customer cash at MF Global. Knowing Jon Corzine, and knowing the abject lawlessness and contempt for humanity of the Marxist Obama regime and its cronies, this is not really a surprise. What was a surprise was the reaction of the exchanges and regulators. Their reaction has been to take a bad situation and make it orders of magnitude worse. Specifically, they froze customers out of their accounts WHILE THE MARKETS CONTINUED TO TRADE, refusing to even allow them to liquidate. This is unfathomable. The risk exposure precedent that has been set is completely intolerable and has destroyed the entire industry paradigm. No informed person can continue to engage these markets, and no moral person can continue to broker or facilitate customer engagement in what is now a massive game of Russian Roulette.
I have learned over the last week that MF Global is almost certainly the mere tip of the iceberg. There is massive industry-wide exposure to European sovereign junk debt. While other firms may not be as heavily leveraged as Corzine had MFG leveraged, and it is now thought that MFG’s leverage may have been in excess of 100:1, they are still suicidally leveraged and will likely stand massive, unmeetable collateral calls in the coming days and weeks as Europe inevitably collapses. I now suspect that the reason the Chicago Mercantile Exchange did not immediately step in to backstop the MFG implosion was because they knew and know that if they backstopped MFG, they would then be expected to backstop all of the other firms in the system when the failures began to cascade – and there simply isn’t that much money in the entire system. In short, the problem is a SYSTEMIC problem, not merely isolated to one firm.
Perhaps the most ominous dynamic that I have yet heard of in regards to this mess is that of the risk of potential CLAWBACK actions. For those who do not know, “clawback” is the process by which a bankruptcy trustee is legally permitted to re-seize assets that left a bankrupt entity in the time period immediately preceding the entity’s collapse. So, using the MF Global customers as an example, any funds that were withdrawn from MFG accounts in the run-up to the collapse, either because of suspicions the customer may have had about MFG from, say, watching the company’s bond yields rise sharply, or from purely organic day-to-day withdrawls, the bankruptcy trustee COULD initiate action to “clawback” those funds. As a hedge broker, this makes my blood run cold. Generally, as the markets move in favor of a hedge position and equity builds in a client’s account, that excess equity is sent back to the customer who then uses that equity to offset cash market transactions OR to pay down a revolving line of credit. Even the possibility that a customer could be penalized and additionally raped AGAIN via a clawback action after already having their customer funds stolen is simply villainous. While there has been no open indication of clawback actions being initiated by the MF Global trustee, I have been told that it is a possibility.
And so, to the very unpleasant crux of the matter. The futures and options markets are no longer viable. It is my recommendation that ALL customers withdraw from all of the markets as soon as possible so that they have the best chance of protecting themselves and their equity. The system is no longer functioning with integrity and is suicidally risk-laden. The rule of law is non-existent, instead replaced with godless, criminal political cronyism.
Remember, derivatives contracts are NOT NECESSARY in the commodities markets. The cash commodity itself is the underlying reality and is not dependent on the futures or options markets. Many people seem to have gotten that backwards over the past decades. From Abel the animal husbandman up until the year 1964, there were no cattle futures contracts at all, and no options contracts until 1984, and yet the cash cattle markets got along just fine.
Finally, I will not, under any circumstance, consider reforming and re-opening Barnhardt Capital Management, or any other iteration of a brokerage business, until Barack Obama has been removed from office AND the government of the United States has been sufficiently reformed and repopulated so as to engender my total and complete confidence in the government, its adherence to and enforcement of the rule of law, and in its competent and just regulatory oversight of any commodities markets that may reform. So long as the government remains criminal, it would serve no purpose whatsoever to attempt to rebuild the futures industry or my firm, because in a lawless environment, the same thievery and fraud would simply happen again, and the criminals would go unpunished, sheltered by the criminal oligarchy.
To my clients, who literally TO THE MAN agreed with my assessment of the situation, and were relieved to be exiting the markets, and many whom I now suspect stayed in the markets as long as they did only out of personal loyalty to me, I can only say thank you for the honor and pleasure of serving you over these last years, with some of my clients having been with me for over twelve years. I will continue to blog at Barnhardt.biz, which will be subtly re-skinned soon, and will continue my cattle marketing consultation business. I will still be here in the office, answering my phones, with the same phone numbers. Alas, my retirement came a few years earlier than I had anticipated, but there was no possible way to continue given the inevitability of the collapse of the global financial markets, the overthrow of our government, and the resulting collapse in the rule of law.
As for me, I can only echo the words of David:
“This is the Lord’s doing; and it is wonderful in our eyes.”
With Best Regards-
Ann Barnhardt
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Post by linsal on Nov 17, 2011 17:45:21 GMT -5
BKN---Thanks for sharing...freakin' scary read...we are so screwed....
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Post by iowa55 on Nov 17, 2011 19:44:31 GMT -5
I'm Considering Relocating to Sodom . . .
Posted by Ann Barnhardt - November 10, AD 2011 11:35 AM MST
. . . because I'm absolutely convinced that this culture, right now, today, is WORSE than Sodom or Gomorrah ever were. Sodom would be a step up.
It is now all over the internet that Sandusky was running a high-dollar pedophile ring, and that "Second Mile" was merely a front and means of recruiting and enslaving young boys who were then pimped to wealthy Penn State donors for sex.
Penn State should be shut down. Not just the football program - the entire university. Shut it down immediately. Any student of Penn State with any sense should be making arrangements to transfer to another university, because graduating from Penn State would necessitate that said person list Penn State on their resume, which will now be a major, major strike against that person. Why? Because they knowingly entered and subsidized a cult that worshiped an old man who "coached" a football team. And, as it turns out, that old man facilitated and enabled a massive pedophile ring. Further, said students, even after learning of this and seeing that "old man" fired, RIOTED last night IN SUPPORT OF THE CULT LEADER / PEDOPHILE RING ENABLER.
TIMELINE:
1998: Sandusky is investigated for an incident involving himself sexually assaulting a young boy in the Penn State showers. Child Protective Services investigate. The university is fully notified.
1999: Sandusky, age 55, is suddenly forced into retirement at his prime, when all previous indications were that he was the heir-apparent to Paterno, who was 72 years old at the time. The retirement package is now thought to have been in exchange for Penn State covering up Sandusky's pedophilia. Sandusky's pedophilia is being called a "poorly kept secret" in the world of Division I football, which explains why one of the top coaches in the nation was not even offered any other position after Penn State.
2000: Despite being retired from Penn State and no longer being in the employment of Penn State or Paterno, Sandusky has unfettered access to the Penn State facilities and travels with the team. In the fall of 2000 a janitor catches Sandusky orally raping a young boy in the football team's showers after hours. Sandusky OBVIOUSLY had keys and passcards which gave him full access despite being no longer "employed" by PSU or Paterno.
2002: Sandusky is caught AGAIN in the showers, this time anally raping a young boy, and is caught by Mike McQueary, who is now an assistant coach. Sandusky STILL has keys and passcards to PSU facilities.
2009: Grand jury investigation begins after a 15 year old boy reported Sandusky to police. Penn State top brass, including Paterno, are called to testify. Sandusky is still seen using PSU football facilities.
Week of 10/30-11/5, 2011: Sandusky is seen working out in a PSU football weight room.
They all knew. Not only that, but Sandusky felt "safe" using the PSU football facilities and showers as his rape room, and was indeed caught repeatedly with zero consequences. Think about that. Sandusky was CAUGHT red handed in the showers sexually assaulting boys in 1998 and 2000, and there was even an investigation as a result of the 1998 incident, and yet Sandusky still felt so "safe" at PSU that he continued to bring boys there to be raped. He continued to hang around the team and be seen in the near-constant company of young boys. Sandusky's confidence is extremely telling.
Penn State should be shut down, and anyone who knew about this should be facing down multi-decade prison sentences. Paterno should die in prison.
Pedophiles should be executed. Justice, in charity, demands it. Find every single participant in the "Second Mile" pedophile ring and let justice be done swiftly upon him.
UPDATE: POSSIBLE MURDER LINKAGE?
The Centre County District Attorney who sparred with Penn State over Sandusky, but never prosecuted, was murdered in 2005. Ray Gricar's empty car was found in a parking lot on April 16, 2005, and his laptop, missing its hard drive, was found nearby in the Susquehanna River. Gricar's body has never been found, and he was declared dead earlier this year.
Pedophile and sex slavery rings are some of the most dangerous, powerful and wealthy criminal organizations in the world.
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Post by glowplug on Nov 17, 2011 19:53:56 GMT -5
Don't forget the homosexual's have a lot of political clout and man-boy sex creeps are a subgroup of the queers.
Just as Oswald didn't act alone, neither did Sandusky. There are other guilty parties at Penn State.
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Post by iowa55 on Nov 17, 2011 20:22:43 GMT -5
Once Hailed For Financial Prowess, Corzine Takes Steep Fall After MF Global Bankruptcy
By Doug McKelway
Published November 17, 2011
| FoxNews.com
Reuters
Former U.S. Senator and New Jersey Gov. Jon Corzine is a man known for taking risks. In 2007, he wasn't wearing a seatbelt when his chauffeur-driven SUV crashed on the New Jersey Turnpike doing 90 miles per hour. Corzine was severely injured.
Now, critics, are saying Corzine brought that same level of risk to his management of MF Global -- a company that crashed in spectacular fashion last month after it disclosed a $6 billion exposure to Eurozone nations like Italy and Portugal.
The former Goldman Sachs CEO’s penchant for juggling finances was once considered an asset. During the tumultuous early months of the Obama administration -- as it faced the immensity of recession -- Vice President Joe Biden hailed Corzine as a wise financial sage. At a campaign stop in October 2009 in support of Corzine's gubernatorial re-election bid, Biden recalled that time and Corzine's counsel.
"I literally picked up the phone and called Jon Corzine and said, 'Jon, what do you think we should do?'"
Just two years later, as the country struggles with recovery, Corzine sits atop the wreckage of MF Global. Its demise is the subject of at least six investigations, including by the FBI and Commodities Futures Trading Commission.
In addition to its bankruptcy filing and lay-offs of more than 1,000 employees, MF Global has told investigative authorities that $600 million of customer money is missing. The shortfall was withheld from investigating authorities for five days -- an apparent violation of the law, according to the head of the Commodities Futures Trading Commission.
"The statute is quite clear that customer money has to be segregated at all times of the day, at every moment of the day," CFTC Chairman Gary Gensler testified recently before a congressional committee. "They're in deficiency in their own words of their own email."
Not long after those remarks, Gensler recused himself from the investigation, admitting to a long relationship with Corzine. The two worked together at Goldman Sachs. Corzine helped arrange a speaking engagement for Gensler at Princeton University last year. Gensler also contributed $10,000 to the New Jersey Democratic Party in 2005.
On Thursday, as the bankruptcy court tried to sort through the debris of MF Global, Judge Martin Glenn ordered 23,000 of 38,000 personal accounts to be reassigned to other brokerage dealers. The move is worth about $520 million. The trustee in charge of the MF Global's liquidation had been cautious about moving too much too fast since so much money is still missing, but Glenn ruled the customers need access to their cash.
"It will take unfortunately some period of time for all of these accounting issues and other issues to be sorted out, and it would be inappropriate in the court's view to delay any distributions to customers," Glenn told the court, The Wall Street Journal reported.
Meanwhile, Corzine has been keeping a low profile since he resigned as CEO of MF Global earlier this month. Repeated attempts by Fox News to reach him at his New Jersey home and his New York City apartment have been unsuccessful. He has hired a prominent defense attorney.
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Post by looter on Nov 17, 2011 20:49:01 GMT -5
. The relatively low-cost commodity producer will never enjoy such joy. Everybody else will live in squalor. This is the Malthusian story for the rest of all mankind. In the US we will likely remove the incentive for the low-cost domestic commodity producer to see this windfall of success. The majority will vote to tax all of this relatively small groups profit incentive away from them and otherwise productive resources will lay idle due to our incredibly clumsy political system. I hear ya bud. So what's your take on regulation of finance/banking industry? My belief is that regs blocks dudes like you and I from starting an honest exchange. Govt cannot police financial sector, and attempts create a false sense of security. Regulators are like a cocker spaniel watching an orgy... They don't know what's goin on, they just know they somehow want in on the action. A collapse of shady firms followed by customers rewarding the competing honest firms is the Austrian School way. What's your thoughts? BTW, let me know when you decide you need a partner on a Doomstead/Trophy Ranch. I'm your Huckleberry.... |
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Post by Dave-ECIA on Nov 18, 2011 11:25:39 GMT -5
Well that was interesting. Covered everything from commodities to molestation, to banking regulation reform. I particularly enjoyed the Cocker Spaniel analogy.
You guys have a thought process as convoluted as mine.
Carry on Gentlemen, carry on.
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BKN
Hired Hand
Posts: 209
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Post by BKN on Nov 18, 2011 20:45:48 GMT -5
www.freerepublic.com/focus/f-news/2809558/posts An intelligent comment from someone most of us know. What is abundantly clear to those of us who know our way around the markets is that the regulators are not doing their jobs. For example, let’s start with Corzine’s lack of a license. To be a C-level exec of a futures brokerage, you MUST have a Series 7 and Series 24 license. You also need these licenses to be a broker at a brokerage, but to be CEO of a brokerage firm like MF, you need to have these licenses as well. Corzine doesn’t. FINRA turned a blind eye to his lack of a current license when he took the top slot at MF in 2010. Corzine last held a valid 7 & 24 when he was at Goldman, prior to his getting into politics. Right there is where the political investigation needs to start. Why did the regulators turn a blind eye to the lack of Corzine’s licenses? Then we get to the CFTC and CME - why didn’t they notice this lack of seg’d funds earlier? There’s no way that the investigators could be taking this long to find the money if it had been moved only in the last month the firm was alive. The firm that did MF’s audits was fined BIG money for failing to notice the lack of segregation errors at JP Morgan only a couple months earlier. This is another case of an accounting firm enabling fraud, just as in Enron’s days. No need to wait for the FASB or others to go into the details of the accounting malfeasances at Pricewaterhouse Cooper - they’re a rich target, just waiting for someone to haul them into the spotlight and say “You’re enabling fraud. We’re going to fine you until you collapse.” I don’t care if the snotting Brits get their overly large noses out of Joint that we’re attacking another Brit corporation. PWC is a well known enabler of fraud. They deserve to be broken in court and shown for what they are. Then we get to the failure of the Fed to investigate the balance sheet of their primary dealers. This failure was a big embarrassment for the Fed, because it makes their PD network look shady. What is the Fed doing about it? They’re raising margin requirements for MBS purchases at their PD’s... instead of looking at their books and asking “Are you going to blow up too?” There are charges that can be brought against Corzine NOW. Right NOW. As of right now, we know that he falsified the SEC financials he submitted for several quarters. He and his CFO can be brought up on charges stemming from violation of financial disclosure requirements for CEO’s and CFO’s from the SarbOx legislation. Now, for those who don’t remember, SarbOx was a piece of Democrat-inspired legislation. It would be delicious irony to use it to hang a Democratic big wheel like Corzine. Then we could start hearings to ask “Why didn’t he have the required licenses? Who inside FINRA gave him an exemption from this requirement?” Then move onto the actual fraud/theft. But, as I said, the GOP is simply too stupid. I could draw a roadmap of how to take on this issue, and I would see my two senators and one Congresswoman’s eyes glaze over because they don’t know jack about the financial markets. 30 posted on Friday, November 18, 2011 2:29:59 PM by NVDave
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Post by iowa55 on Nov 21, 2011 13:32:07 GMT -5
Nov. 21, 2011, 11:36 a.m. EST
MF Global trustee: $1.2 billion missing
By Ronald D. Orol WASHINGTON (MarketWatch) - A trustee seeking to distribute customer securities overseen by bankrupt MF Global Inc. estimated Monday that $1.2 billion in client money may be missing, twice as much as previously expected. "At present, the Trustee believes that even if he recovers everything that is at US depositories, the apparent shortfall in what MF Global management should have segregated at US depositories may be as much as $1.2 billion or more," the trustee said in a statement.
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