Posted 1 year ago on July 9, 2012, 8:13 p.m. EST by Middleaged
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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.
"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...."