Forum Post: The Final Straw? Jefferies And Six Other Banks Sued For "Fraudulent" MF Global Bond Issuance
Posted 12 years ago on Nov. 19, 2011, 9:11 a.m. EST by MonetizingDiscontent
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The Final Straw? Jefferies And Six Other Banks Sued For "Fraudulent" MF Global Bond Issuance
Pick the odd one out of the following 7 banks, while in the process pointing out what they have in common: Bank of America Corp, Citigroup Inc, Deutsche Bank AG, Goldman Sachs Group Inc, Jefferies Group Inc, JPMorgan Chase & Co and Royal Bank of Scotland Group Plc. As it so happens 6 of the 7 are Bank Holding Companies, and have access to the Fed's various emergency facilities. The seventh, Jefferies, which a few years ago, boasted that it is now the largest remaining true investment bank after all its competitors had converted to BHC status, may soon regret it said that and did not join its peers.
Why? For the same reason why on November 1, the day after MF Global filed for bankruptcy, we tweeted: "Here is why Jefferies is in deep doodoo: http://1.usa.gov/uNBhzq
"The reference of course is to the now legendary prospectus for the MF Global 6.25% notes of 2016... http://sec.gov/Archives/edgar/data/1401106/000119312511209953/d424b2.htm ...that had the infamous Corzine key man event: "interest rate applicable to the notes will be subject to an increase of 1.00% upon the departure of Mr. Corzine as our full time chief executive officer due to his appointment to a federal position by the President of the United States and confirmation of that appointment by the United States Senate prior to July 1, 2013."
At this point the only appointment Obama may give Corzine is that of a presidential pardon for a criminal felony offense (assuming of course Corzine brings a sleeping bag to Zuccotti square: the only offense for which he may ever be arrested).
Alas, Jefferies, and the 6 other banks, do not have that luxury: as of late this afternoon, all six were sued by pension funds "who said the bonds' offering prospectuses concealed problems that led to the futures brokerage's collapse." Precisely as Zero Hedge expected. And unfortunately for Jefferies, this may well be the final nail in the coffin - because while the market had punished the bank for its Exposure, the biggest unknown in the past 2 weeks was whether and when it would be sued precisely for its MF Global liability.
That time is now: next up - every single entity that was impaired in part or in whole as a result of the MF Global bankruptcy will follow suit and sue the same 7 banks... of which only Jefferies does not have the benefit of an infinite backstop.
Read More of this HERE:
Anger mounts as MF Global Clients See $3 Billion Still Stuck
http://ca.news.yahoo.com/insight-anger-mounts-mf-global-clients-see-3bln-190836206.html
"More than $3.3 billion or 60 percent of total customer funds at the time of the bankruptcy are still frozen."
::::::::::::MF Global trustee: $1.2 Billion Missing::::::::::::
http://truthingold.blogspot.com/2011/11/you-heard-it-here-first.html
Monday, November 21, 2011
::::::::::::MF funds Shortfall could Top $1.2 Billion: trustee::::::::::::
http://www.marketwatch.com/story/mf-funds-shortfall-could-top-12-bln-trustee-2011-11-21
By Dan Strumpf
NEW YORK (MarketWatch) -- The trustee overseeing the wind-down of MF Global Holdings Ltd.'s brokerage said more than $1.2 billion in customer funds could be missing from the failed firm, more than double the original estimate of missing cash.
Gerald Celente: Uncovering what he thinks is the Smoking Gun Behind The MF GLOBAL Scandal
(((Video))) http://www.youtube.com/watch?v=6weHpFCrxdw&feature=player_embedded#!
Smoke and mirrors.
The GFC of 2007-9 was all about predatory takeovers.
This is more of the same.
::::::::JP Morgan caught stealing customer money, just like MF Global::::::::
http://maxkeiser.com/2011/11/19/jp-morgan-caught-stealing-customer-money-just-like-mf-global/
::::::::::::JPMorgan hit with record £33m fine::::::::::::
http://www.dailymail.co.uk/money/article-1283817/JPMorgan-hit-record-33m-fine.html
JPMorgan has been slapped with the largest fine ever issued by the Financial Services Authority and the watchdog also warns that it has 'several more' banks in its sights.
The Wall Street firm, where Tony Blair works as an adviser, has been told to pay £33.32million for failing to keep client funds separate from its own in its futures and options business.
As first reported by the Daily Mail last August, for an astonishing seven-year period JPMorgan failed to protect its customers by keeping their cash properly ring-fenced.
(((VIDEO))) Max Keiser on: Financial Apartheid, Germany 4.0, Gold-vs-SDR, and MF GLOBAL
http://maxkeiser.com/2011/11/19/max-keiser-on-financial-apartheid-germany-4-0-and-gold-vs-sdr/
((0:00 in the vid)) As the eurozone crisis continues, could the options on the table include a German takeover? A leaked document from Germany's foreign ministry reportedly reveals the country may be preparing for a new European fund that will be able to take over the economies of struggling eurozone countries.
Meanwhile, we know regulators have been trying to figure out what happened to the $600 million dollars missing from customers of -MFGlobal-. And they now suspect at least some of that cash may not be missing, it may be gone.
Regulators suspect it may have been used to cover trading losses at the firm that has, of course, now declared bankruptcy. The question remains as to whether more customers will react like Gerald Celente who we talked to this week and created a new interpretation of what MF really stands for.
((minute14:05 In the vid)) And from working on Wall Street to Occupying Wall Street, we'll talk to Max Keiser on his evolution from broker to leader of the so-called global insurrection against banker occupation. ((17:10 in video))And with 75,000 layoffs expected on Wall Street, will we see more bankers join the fight?
"The Entire System Has Been Utterly Destroyed By The MF Global Collapse" - Presenting The First MF Global Casualty
http://www.zerohedge.com/news/entire-system-has-been-utterly-destroyed-mf-global-collapse-presenting-first-mf-global-casualty
these gangsters gotta go,why are none of these prosecuted?supreme court, and prosecuters owned by corpocracy..Eliminate Corpocracy..
Jon Corzine is a thief being protected by the FBI, CFTC, and CME
There is nothing to investigate. The media claim there is an investigation by the FBI, CFTC, and CME Group is a stall with the intention of protecting Corzine from a criminal prosecution. Corzine is privileged to steal the money from the segregated accounts of the MF Global customers. The American privileged class is protected by the entire CRIME FAMILY Democrat and Republican duopoly that knows no boundaries.
The only remedy is to elect a 3rd party. A normal, thoughtful person would think that the OWS protest would be working to elect the Green Party which would be easy to do right now because a prominent candidate like Stephen Colbert or Jon Stewart would destroy any chance for Obama to be elected. All the Democrat voters would panic to prevent another crazy, ignorant Republican like they did with Bush. All the Democrats would stampede to vote for the only alternative -- the Green Party candidate.
It goes without saying that all the independents would vote for the Green Party. The American disaster would be ended with a happy ending.
bump it up