Forum Post: Theft, RICO lawsuit targets MF Global, CME Group, MorganChase /// Customer Protest of CME Group & JPMorgan Has Begun /// CFTC & CME Regulated Futures System is Defaulting on its Obligations /// CME Did -NOT- Guarantee Oversight in MFGlobal Scandal
Posted 8 years ago on Dec. 15, 2011, 12:03 p.m. EST by MonetizingDiscontent
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BREAKING: Theft, RICO lawsuit targets MF Global, CME Group, MorganChase
(((See article here))) http://www.gata.org/node/10875
-January 12, 2012-
Dear Friend of GATA and Gold:
Our friends at the Philadelphia law firm of Berger and Montague this week brought a class-action lawsuit in federal court in New York, charging theft and misappropriation, against people connected with the failed commodity brokerage firm MF Global, including its former CEO, former New Jersey U.S. Sen. and Gov. Jon Corzine; MF Global's enabler and supposed regulator, CME Group; and the investment bank JPMorganChase. The lawsuit is brought under both the Commodity Exchange Act and the Racketeer-Influenced Corrupt Organizations Act -- the famous RICO. (Maybe the lawsuit can determine where MorganChase put Judge Crater.)
The lawsuit's complaint is posted at GATA's Internet site here:
Customer Protest of CME Group And JPMorgan Has Begun
-Jan 04, 2012-
Unlike the stock market, the futures market has all of its contestants directly in competition with one another; every contract is essentially a bet between two parties. In the wake of MF Global (MFGLQ.PK) however, competitors stand unified in collective disgust, but more action must be taken. Here is the latest from the battlefield.
The CFTC is inept, and the CME is haplessly squirming, having punted on covering MF Global customers due to short-term shareholder obligations. After pouring through news articles, I want to encourage everyone to read Erin Arvedlund’s piece in Barron's, "The Silver Rush at MF Global." http://online.barrons.com/article/SB50001424052748703856804577098740322633760.html ....It’s a great take on just how viciously property rights have been stampeded in this process. Much of this sordid tale has come out recently when the Congressional hearings featuring Jon Corzine gave the story a well-deserved boost in the spoon-fed media. We broke this story early in Minyanville.... (see MF Global: Is This the Second Coming of Bernie Madoff? http://www.minyanville.com/businessmarkets/articles/mf-global-mf-global-bankrupt-mf/11/1/2011/id/37705 ) ....and we indicted all the right culprits—senior management at MF Global, the CFTC, the CME Group, and a little bank called JPMorgan (JPM). http://finance.minyanville.com/minyanville/quote?Symbol=JPM
(((Continue Reading this article Here))) http://www.minyanville.com/businessmarkets/articles/mf-global-mf-global-bankruptcy-mf/1/4/2012/id/38681
MF Global debacle triggers calls for CME changes
-27 December 2011-
CFTC and CME Regulated Futures System is Defaulting on its Obligations
The Silver Rush at MF Global
-December 19th, 2011-
Investors are furious that they can't get back the gold and silver they stashed with the failed brokerage.
It's one thing for $1.2 billion to vanish into thin air through a series of complex trades, the well-publicized phenomenon at bankrupt MF Global. It's something else for a bar of silver stashed in a vault to instantly shrink in size by more than 25%.
That, in essence, is what's happening to investors whose bars of silver and gold were held through accounts with MF Global.
IT'S STILL UNCLEAR WHETHER CME will put its commodity-futures customers first—or its shareholders.
The company has set aside a $550 million reserve for MF Global customers, and it has cash balances of more than $1.1 billion that it could tap, if needed.
But CME Group's chief operating officer, Bryan Durkin, said last week that CME wouldn't guarantee the funds that remain missing from customer accounts at MF Global after they are reimbursed by the bankruptcy trustee. Such a move would be "unwise" and the CME has a "fiduciary responsibility" to its shareholders, Reuters quoted him as saying."
In congressional testimony last week, CME Executive Chairman Terrence Duffy pinned the blame squarely on MF Global, asserting that Corzine knew that untouchable, segregated customer funds had been used as collateral for loans. Corzine later denied Duffy's charge.
(((Read the entire article Here))) http://finance.yahoo.com/news/the-silver-rush-at-mf-global-.html
CME Did -NOT- Guarantee Oversight in MF Global Scandal
It is very suspicious that weeks prior to MF Global’s fall billionaire investors like the Koch brothers had the miraculous foresight to withdraw all their money, prompting accusations that big players got a ‘heads up’... http://www.huffingtonpost.com/daniel-dicker/the-koch-brothers-and-mf-_b_1089906.html ...in advance of the firm’s collapse.
CME is now in the process of damage control. Earlier today (Nov 17th) the organization issued a press release... http://www.marketwatch.com/story/cme-group-statement-on-mf-global-segregation-violation-2011-11-17 ...stating “that it followed CFTC requirements and CME Rules and procedures in reviewing MF Global’s segregated funds statements and coordinating that review with the CFTC” and characterized reports that it was negligent as “inaccuracies.”
Terrence Duffy's Introduction at CME Group Press Conferecne with Mayor Daley. Announes $100 Billion in Collateral As They are “the guarantor of every transaction that happens in our markets”
Trends forecaster Gerald Celente, who lost gold futures at MF Global in the six figure range, has discovered a video of CME Executive Chairman, Terrence Duffy, (Above Link) holding a press conference last year in which he unequivocally states that no “customer has ever lost a penny as a result of a clearing member default that CME Group.”
Duffy admits that CME is the “guarantor of every transaction that happens in our markets (and) we have to guarantee the performance of each and every one of these contracts.” Obviously, this was not the case with MF Global and its clients.
The CME boss claims in the video that the futures and options markets provide “a place of shelter for the most damaging parts of the economic crisis” and “function flawlessly, providing liquidity, transparency and central counterparty clearing services that continue to work throughout the crisis,” a claim that turns out to be entirely fallacious, as Celente and others discovered after MF Global went belly up.
Duffy proudly admits that CME is “the guarantor of every transaction that happens in our markets” and guarantees “the performance of each and every one of these contracts which means facilitating the transfer of $800 trillion of risk. To do this, we hold more than $100 billion of collateral to support the transactions that are being done on our markets.”
However, as Gerald Celente notes, not “only have customers lost money, they’ve lost their futures positions. Secondly, and more important, CME did not honor its ‘guarantee’” to MF Global’s clients.
“This is big news that nobody has uncovered, and I’d like to break it, says Celente.
It is not certain at this point if CME’s role in the scandal will be highlighted. Authorities are attempting to track down MF Global client money lost in JP Morgan’s black hole and two “aggressive and high-profile federal prosecutors,” according to the Wall Street Journal... http://blogs.wsj.com/law/2011/11/17/the-am-roundup-mf-global-subpoenas-prop-8-more/ ...are using subpoenas to gather MF Global records.
Trustee to Seize & Liquidate Even the Stored Customer Gold and Silver Bullion From MF Global
-December 17th, 2011-
The bottom line is that apparently some warehouses and bullion dealers are not a safe place to store your gold and silver, even if you hold a specific warehouse receipt. In an oligarchy, private ownership is merely a concept, subject to interpretation and confiscation.
Although the details and the individual perpetrators are yet to be disclosed, what is now painfully clear is that the CFTC and CME regulated futures system is defaulting on its obligations.
This did not even happen in the big failures like Lehman and Bear Sterns in which the customer accounts were kept whole and transferred before the liquidation process...
(((Continue Reading this article Here))) http://jessescrossroadscafe.blogspot.com/2011/12/attempt-to-seize-and-liquidate-customer.html
Max Keiser & Gerald Celente
Discussing the Relationship Between JPMorgan and MFGlobal... and CME's Terrance Duffy who was Bragging a Year Ago, that they are the Guarantor of -ALL- Trades that go on, in the Commodities Market Exchange. (Where's the money Duffy?)
(((WATCH Here))) http://www.youtube.com/watch?v=GCo2q4gsbNI&feature=player_embedded#!
-December 17th, 2011-
Max Keiser: "In the US there are limits to how much that a fund can hypothicate. They can leverage up to 140% of customer funds, if in fact it's backstopped with AAA rated -lets say- Treasury Paper"