Everything You Wanted to Know About JP Morgan and the MF
Global Ponzi Scheme
But Were Afraid to Ask
Breaking News January 13, 2012
http://www.stewwebb.com/breaking_news.htm
http://www.myspace.com/tom_heneghan_intel/blog
By Tom Heneghan, International
Intelligence Expert
Wednesday January 11 2012
UNITED STATES of America-How JP
Morgan And George Soros Ended Up With MF Global Customer Money
In recent testimony before a Congressional committee, MF Global’s former chief Jon Corzine
as well as other MF Global executives said repeatedly the
didn’t know where the failed brokerage firm’s $1.2 billion of missing client money was. In fact, MF Global
executives knew exactly what happened to the money, as do the regulators who
oversaw the firm’s bankruptcy. The so-called segregated customer funds were
repeatedly, and legally (through re-hypothication),
used as collateral for MF Global loans for 100:1 leveraged bets on European
sovereign debt.
Rehypothication is the 800lb gorilla
(Editor’s note: make that the 2,000 lbgorilla).
In 2007 I was with another fund that was the first 2.5bln
casualty of the
A substantial portion of MF Global’s
commodity clients cleared their transactions through the Chicago Mercantile Exchange
and Comex, owned by CME Group (ticker: CME). The
question now looming over CME’s stock is whether the company will be liable for
customer losses, as the Commodity
Customer Coalition, a
group that says it represents some 8,000 investors—including many hedge
funds–with exposure to MF Global are not going down
without a fight.
Rather than being treated as a bankruptcy of a commodities
brokerage
firm under sub-chapter IV of the Chapter 7 bankruptcy law, MF
Global was
treated
as an equities firm (sub-chapter III) for the purposes of its
bankruptcy, and this is why the MF Global customer money in so-called
segregated accounts “disappeared”. In a brokerage firm bankruptcy, the
customers get their money first, while in an equities firm
bankruptcy,
the customers are at the end of the line, meaning MF Global’s creditors,
namely
J.P. Morgan and other trading counterparties, got their money
first, just as AIG’s CDS (credit default swap) counterparties
(mainly
Goldman Sachs) got their money first when the U.S.
government bailed out
AIG.
To add further insult to injury for MF Global clients, the
firm
reportedly unloaded hundreds of millions of dollars’ worth of
securities
to
Goldman Sachs, and others, who then reportedly flipped these
securities within a day to George Soros funds.
What the debacle implies is that nothing has really been
learned from
the 2008 financial crisis, and that there really is no safety
in any
paper investment when push comes to shove. Brokers and investment
banks are effectively running leveraged ponzi
schemes running in the
trillions of USD with your collateral then refuse to offer you
liquidity
on
the collapse of the trade because they won’t face a brokerage This
has
very wealthy individuals as well as non-too-big-to-fail market
participants seriously reconsidering the risks of regulatory malfeasance
during
such systemic “black swan” events. In such cases, be prepared
for commodities and equity brokers, investment and commercial
banks to
“freeze” your funds, enforced by
central banks or other regulatory
authorities–i.e., a de facto banking holiday, while not only will your
purchasing power be reduced by currency devaluations, but you will
also
be asked to again bail out the banksters
with your tax money.
P.S. The alleged
financial regulators aka the Commodities Futures Trading
Commission (CFTC), the Securities Exchange Commission (SEC),
along with the National
Futures Association (NFA) and the U. S. Justice Department,
are still involved in a
massive obstruction of justice aka cover up of this massive money laundry.
These alleged financial regulators are more concerned about
using entrapment calls aka
Nazi Germany tactics and bogus audits based on false ratios
(that ignore volatility
of the markets) to destroy small ma and pa retail brokerage
firms that are not tied
to the big crooked banks and their managed futures operations
that churn their customers and realize at most a one percent profit.
P.P.S. We now bring you a
list of the account numbers, mainly tied to Asian banks,
that were used to launder the MF Global-JP Morgan derivatives
that were written and
disguised and un-collateralized on the corrupt London Life Exchange,
and with the
help of the corrupt Federal Reserve, turned into
un-collateralized Japanese yen
currency derivatives that were used to support this massive money
laundry (aka ponzi
scheme) by artificially increasing the exchange rate of the
Japanese yen versus both
the Euro currency and the U.S. dollar.
In other words, folks, the Japanese yen has been used as a
pimp currency for the
purpose of the Federal Reserve and JP Morgan.
The attached documents were sent by a source linked to
Ferdinand Marcos and
have
been confirmed as genuine secret government documents
http://benjaminfulford.typepad.com/benjaminfulford/2012/01/my-recent-find.html
See additional previous reports on MF Global and J.P.
Morgan