Forum Post: PFGBest (MF Global Part 2), $220 Million In Segregated Client Money, Vaporized
Posted 12 years ago on July 9, 2012, 8:13 p.m. EST by Middleaged
(5140)
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PFGBest Is Now MF Global Part 2 As $220 Million In Segregated Client Money Has Just Vaporized
Submitted by Tyler Durden on 07/09/2012 - 19:17
Commodity Futures Trading Commission fixed MF Global None Remember when the entire segregated account fiasco was supposedly fixed in the aftermath of the November 2011 MF Global bankruptcy, and where regulators: the CFTC, the SEC, the CME, and anyone you asked, swore up and down this would never happen again? Turns out that 7 months later, the spirit of MFGlobal has struck again and it's name is PFGBest, as we suggested first 3 hours ago when we broke the story. From the just filed affidavit by Lauren Brinati who is working with the National Futures Association, which in turn has just filed notice prohibiting PFGBest from operating futher, and freezing all of its accounts: "On July 9, 2012, NFA made inquiry with US Bank and learned that rather than the $225 million that PFG had reported as being on deposit at US Bank just days earlier, PFG had only approximately $5 million on deposit at U.S. Bank." Translation: another $220 million segregated account pillage, in the vein of none other than Jon Corzine and MF Global.
The money has now officially vaporized.
http://www.reuters.com/article/2012/07/09/us-broker-pfgbest-idUSBRE8681C820120709?feedType=RSS
"WE'RE DOOMED" Reuters -
"....One broker at the firm said that Wasendorf's son, Russ Wasendorf Jr, briefed employees about the events earlier in the day, saying that a suicide note had been found alluding to some kind of financial troubles with the company. The younger Wasendorf "sounded like he was in another world."
"Everybody here is obviously in shock," said the broker, adding that some employees had begun packing up shortly after the announcements.
"Pretty much everybody around here said we're doomed...."
Re. "PFGBest (MF Global P2)", please consider the following :
"PFGBest founder 'attempts suicide as $200m goes missing from accounts'", by Simon Goodley : http://www.guardian.co.uk/business/2012/jul/10/pfgbest-founder-200m-accounts?newsfeed=true .
"Scandal Shakes Trading Firm - Regulators Cite Peregrine in Missing $215 Million ; Company Files for Bankruptcy", by Jacob Bunge, Jerry A. Dicolo and Josh Dawsey : http://online.wsj.com/article/SB10001424052702304022004577518680956762826.html ,
"PFGBest At Its Worst", by Walter Pavlo : http://www.forbes.com/sites/walterpavlo/2012/07/10/pfgbest-at-its-worst/ ,
"PFGBest liquidating operation, laying off hundreds", by Geoffrey Rogow : http://www.marketwatch.com/story/pfgbest-liquidating-operation-laying-off-hundreds-2012-07-09 &
"Lawmakers to Scrutinize Futures Oversight After PFGBest Blowup", by Jamila Trindle : http://online.wsj.com/article/BT-CO-20120710-713279.html .
"Iowa broker PFGBest collapses after hiding millions - The U.S. futures industry reeled on Tuesday as Iowa-based broker PFGBest collapsed after regulators accused it of misappropriating customer funds for more than two years, dealing a new blow to trader trust just months after MF Global's demise." : http://uk.reuters.com/article/2012/07/11/uk-broker-pfgbest-mfglobal-idUKBRE86914620120711 ,
radix omnium malorum est cupiditas ...
Here is a video explaining how the accounts are being liquidated and touches on the fact that both Russ Jr. and his chief compliance officer we both sactioned prior and were limited in the capacities that they were allowed to serve at PFGBest.
Russell Wasendorf, Jr was sanctioned by the NFA earlier this year for other violations … as was the Chief Compliance Officer, Susan O’Meara
Thanks for the great links.
http://live.wsj.com/video/regulators-shut-down-futures-brokerage-pfgbest/7F80B944-3CDB-428A-929F-1331C3FBE0F4.html?link=MW_article_tboright4#!7F80B944-3CDB-428A-929F-1331C3FBE0F4
Financial institutions, can be really bad places, to put your money.
Yup. Now a mattress or a jar in the backyard is better. LOL
Actually we would need to think like an old cold war spy or an action hero to actually hide money under a rock or in our house. But maybe with the hidden history of US bankers and the fraud going on ... the safest thing is to keep your enemies close and watch your back. I'm listening to a video on the history of Rothchilds and Central Banking....
http://www.youtube.com/watch?v=SMqb_WrnVTc&feature=related (The true history of the Banking Cartels and the Federal reserve )
The situation is difficult. Am now with local credit union, for basic banking (so far ok). Not interested in any financial products.
Talk out there about total financial system collapse coming. Not sure what it would be like, or how best to prepare.
Thank you for link. Unfortunately, on old rural phone line, and can't lode video.
Thanks. I have had credit unions for like 24 years. They are good.
I wonder about financial collapse also. I guess Noreiel Robinini on CNBC says that it will be worse that 2008. Well it is really the same banking crisis anyway no matter how you look at it.
I'd be interested in starting to look at stories about collapse. I haven't really dug in yet. I replied to someone last month that I didn't think it would be the end of the world. They say we recover from crisis father these days (in the 21st Century).
Banking does cover all of our transactions, payroll systems, city billing and receipts, business invoices and receipts, city projects, pensions, food stamps, loans, loans and payment systems, .... But if people keep working, most of the money should be paid, and those will pay bills, and that will all keep things going.
I assume we are talking about a system collapse where certain bank payments stop, where certain accounts are frozen.
But that is not as bad as a catastriphic string of computer, optical cable, phone lines, satelites all going down at the same time due to some kind of hardware malfunction.
As long as collapse is localized to either large banks or to only certain accounts ....everyone is going to keep the payments flowing no matter if it is a private or public payroll, and especially if you want to pay bills.
My 2 cents from what I know about military networks, computer systems, and greed.
Enjoyed your reply. Makes good sense.
Here is a follow up I wrote over the last 12 hours.
http://occupywallst.org/forum/who-is-responsible-for-our-us-financial-risk-fsoc-/
Thank you Middle, Plan to spend some time studying the links.
Best Regards
Thanks