Did any body see this?
http://www.reuters.com/article/2012/08/ ... 0T20120810
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http://www.zerohedge.com/contributed/20 ... arning-fed
comment #1 not in order on posting site
Your money isn't yours anyway. Once it leaves your possession it belongs to the brokerage house!
More from Ann Barnhardt who has been warning about this for months.
Do you remember how I told you about the Ponzi scheme that imploded in 2007 called "Sentinel Management Group" that stole over $500 million in customer funds? The NFA was the auditing regulator of Sentinel, and the NFA admitted after the Sentinel Ponzi imploded that they signed off on their audits even though the NFA claimed not fully understanding Sentinel's books or accounting methods. In other words, the NFA didn't really audit Sentinel at all - they just PRETENDED to audit them, drew up some forms, had some robosigners sign off, and then just hoped that when the shit hit the fan, everyone in the industry would be so terrified of the NFA that no one would hold the NFA accountable for their criminal malfeasance - or even talk about it.
Sentinel took customer segregated money and fraudulently used it as the collateral on a loan from Bank of New York Mellon for $312 million to fund their own in-house proprietary trading operations. When the Sentinel Ponzi collapsed, BNYM sued to go to the front of the line of creditors - ahead of the customers of Sentinel whose money was fraudulently used as collateral, which has now been "linguistically sanitized" into the word "hypothecated".
The federal appeals court ruled yesterday that not only does BNYM stay at the front of the line, but that using customer segregated funds as collateral is NOT a crime, and that co-mingling customer segregated funds with proprietary funds is NOT fraud.
Here is the Reuters piece.
Read this quote from the ruling, which is, in essence, the entire financial market paradigm being guillotined:
That Sentinel failed to keep client funds properly segregated is not, on its own, sufficient to rule as a matter of law that Sentinel acted ‘with actual intent to hinder, delay, or defraud' its customers.
U.S. Circuit Judge John D. Tinder
What this means is that even if Jon Corzine is somehow dragged into court by private citizens, because you know damn good and well that the Justice Department will never, ever touch him, Corzine now has a legal precedent, likely from a bribed or otherwise coerced Federal Appeals Court, explicitly stating that an FCM can use customer deposits to pay its debts, and that the customers themselves are subjugated and have basically no legal right to their own monies, no matter what the law says, or what legal assurances, claims or guarantees are made to that customer about their funds held with an FCM or any other brokerage or depository institution. The "secured" party at the front of the line will always be the mega-bank who made the fraudulent loan using the stolen customer funds as collateral.
In other words, all customer funds in the United States are now the legal property of JP Morgan, Goldman Sachs, BNYM, or whichever megabank is the counterparty on the loans the FCM or depository institution takes out in order to fund its mega-levered proprietary in-house trading desks.
For the love of God, I don't know what more there could possibly be to say to snap you people out of your normalcy bias trance. You have GOT to get ALL MONIES out of the financial system NOW. This ruling sets precedence for every depository institution, not just futures brokerages. It is now legal in the United States for any financial institution to steal customer funds, borrow money against those funds for the uber-levered proprietary trading use of the financial institution, and the customers have ZERO CLAIM TO THEIR OWN FUNDS once they are in the custody of the financial institution.
The court has ruled that once your money passes out of your PHYSICAL POSSESSION, and I mean PHYSICAL possession, it is no longer yours, and you have no legal claim or legal recourse to it when it is stolen. This includes BANK ACCOUNTS. Money in a bank is in the possession of the BANK, not you. Do you comprehend this? The entire system is utterly devoid of any integrity or genuine security and is breaking down catastophically before our very eyes. You HAVE to comprehend that your money sitting in an account is no longer legally yours. You have to force your brain to process and comprehend this, no matter how incomprehensible it may seem. IT IS OVER. This is Marxist hell. We have arrived.
This ruling and precedent will be used by every brokerage, every bank, every insurance company and every pension fund to deny you your money when the financial system finally collapses, be it on Monday, or be it two years from now.
DO YOU UNDERSTAND?
You have GOT to GET OUT.
#2 posted after the above comment
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Sat, 08/11/2012 - 16:52 | 2697796OldE_Ant
I want to add to the above comment. Having traded KCG (KNIGHT) for some profit I received an e-mail pointing me to the following:
https://materials.proxyvote.com/Approve ... 138173.PDF
This document basically tells KCG longs that due to the emergency nature of the situation that KCG bypassed existing law, got the SEC to go along with a rules change and voila - longs are completely screwed out of any rights to vote down the 'deal' managment made. The SEC is even complicit in helping KNIGHT out in the whole thing. You want to screw your shareholders - sure - as long as you cover that $400M in trading costs.
Consider if KNIGHT didn't have squat for capital and went BK. What do you think would have happened to all of the trades it did? (i.e. the real stock, and money they supposively paid). The money and stock associated with all of the trades would have be locked up in court for a few years while everyone tried to figure out what happened. I think this was the sole reason NYSE backed out a certian number of trades (simply because KNIGHT could not have come up with ALL the money and would have went BK).
If KNIGHT went BK and a whole slew of transactions went into court land this would have caused major market havoc as people would then realize a simple fact. There are certian players in the market who can not just create 'virtual shares - naked shorting' but can also create 'naked cash'. KNIGHT did just that. They had 3 days to fill this gaping hole or face a serious threat to the system, hence players came out of the woodwork to 'save KNIGHT'. Actually they saved their own asses - probably because a lot of the trades KNIGHT executed were with those same players algos.
In short while you may think when you execute a trade that someone actually has stock or cash, (like buying a car) they don't. They have NOTHING, zero, ZIP, NADA and for 3 days you have zip, ZERO, NADA but HOPE. What is worse is when push comes to shove according to the above court ruling anyone with money in these things will find they have nothing left, or it will be tied up in court until worthless.
This means not that are markets are broken, they are fricking DANGEROUS and HAZARDOUS to your wealth. I feel more confidant sitting down at a poker table in a casino than putting my money in a brokerage account, 401-K etc. these days.
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