MF Global Emptied Out Customers’ Accounts Via Internal Bank Run

MF Global Looted Customers’ Accounts Via Internal Bank Run [infowars.com]

Days before the doomed financial broker filed for bankruptcy, MF Global conducted “unexplained wire transfers” that led to a $900 million shortfall in client funds, leading customers like Gerald Celente to learn that their accounts had been looted and setting the precedent for internal bank runs as more big firms go bust.

The money in these accounts were in funky hedged/leveraged/derivative type equities, right? It was the drop in value of the equities that caused customers to lose all of their money?

I'm just curious to know if something like this could happen to money in major banks (Chase, BoA) that are just sitting in cash or a money market account.

Quote from Lilian : The money in these accounts were in funky hedged/leveraged/derivative type equities, right? It was the drop in value of the equities that caused customers to lose all of their money? I'm just curious to know if something like this could happen to money in major banks (Chase, BoA) that are just sitting in cash or a money market account.

I was wondering the same thing...

Quote from Lilian : The money in these accounts were in funky hedged/leveraged/derivative type equities, right? It was the drop in value of the equities that caused customers to lose all of their money? I'm just curious to know if something like this could happen to money in major banks (Chase, BoA) that are just sitting in cash or a money market account.

While MF Global was largely a derivitives dealer, it's collapse is attributed to it's CEO trying to convert it into an investment bank often likened to a mini-Goldman.

MF Global got in heavy with Euro debt, which obviously went south. When the interest rates of the Euro debt they held increased (significantly in some cases) the current market value of the existing debt quickly went down.

From what I've read, they are accused of using alot of the money from these accounts to cover the banks investments (which is illegal). People are likely going to go to jail over this, hopefully starting with that CEO (if guilty).

Gerald Celente: MF Global Looted Customers' Accounts Via Internal Bank Run 1/4 [youtube.com]

The website seems to be down but here are the youtube videos

Interview with RT:
http://www.youtube.com/watch?v=8Bl6oaEMzoE

Infowars interview 1:
http://www.youtube.com/watch?v=J5OxXGjJBnM

Infowars interview 2:
http://www.youtube.com/watch?v=zsUWcPIlvNQ

Quote from 124nic8 : These were not FDIC insured accounts.

They might be SIPC insured, but that is unclear to me at this time.

Quote from Danman114 : From what I've read, they are accused of using alot of the money from these accounts to cover the banks investments (which is illegal). People are likely going to go to jail over this, hopefully starting with that CEO (if guilty).

Yep, the not keeping accounts separate thing will hopefully be a big enough "hey, they can't do that" that even the U.S. government can't ignore it and will have to hold somebody acountable for a change.

This gets plenty of coverage on CNBC. I believe commodity accounts aren't insured or are only insured very little. I know someone who has 200k tied up.

Quote from Lilian : The money in these accounts were in funky hedged/leveraged/derivative type equities, right? It was the drop in value of the equities that caused customers to lose all of their money?

Even the cash accounts were looted. So if you had say 100,000 in cash in your account, all of a sudden you only had 89,000. Overall, people lost 11% from their accounts.

Why would anyone trust their money with a business that reefers to themselves with the initials MF?

Quote from travfar : Even the cash accounts were looted. So if you had say 100,000 in cash in your account, all of a sudden you only had 89,000. Overall, people lost 11% from their accounts.

Wait... wtf....? Are you sure? Because that's just straight out robbery.

Technically, is our money safe with any financial institution? Can they just empty out even CASH accounts willy nilly?

Quote from Lilian : Wait... wtf....? Are you sure? Because that's just straight out robbery. Technically, is our money safe with any financial institution? Can they just empty out even CASH accounts willy nilly?

Well.... that's the problem. Those accounts were insured by SPIC, the brokeage version of the FDIC. So people thought that there cash at least was safe. But the SPIC has bawked on insuring the cash. They say they will cover the stocks and bonds but not so fast on the cash. So the safest asset is the least safe? It's bizarro world.

And yes, I'm sure. They tapped into the accounts holders cash accounts and transferred that out. In fact, the people that liquidated into all cash are frozen solid. The people that keep their positions opened got transferred to other brokerages. So the most screwed people are the people who had cash.

I used to think the cash I have in any institution that was FDIC/SPIC was safe. Turns out not. I'm thinking about buying gold bars and burying them in the backyard now and getting a couple of dogs.

Quote from travfar : Well.... that's the problem. Those accounts were insured by SPIC, the brokeage version of the FDIC. So people thought that there cash at least was safe. But the SPIC has bawked on insuring the cash. They say they will cover the stocks and bonds but not so fast on the cash. So the safest asset is the least safe? It's bizarro world. And yes, I'm sure. They tapped into the accounts holders cash accounts and transferred that out. In fact, the people that liquidated into all cash are frozen solid. The people that keep their positions opened got transferred to other brokerages. So the most screwed people are the people who had cash. I used to think the cash I have in any institution that was FDIC/SPIC was safe. Turns out not. I'm thinking about buying gold bars and burying them in the backyard now and getting a couple of dogs.

I'm buying an extra mattress...

MF Global Money Now “Missing” After Reports It Was Sent To JP Morgan [infowars.com]