Major financial derivatives broker MF Global suspended

[Muzz]

Hi folks

From the newYork Fed website -

Statement Regarding MF Global Inc.

The Federal Reserve Bank of New York has informed MF Global Inc. that it has been suspended from conducting new business with the New York Fed. This suspension will continue until MF Global establishes, to the satisfaction of the New York Fed, that MF Global is fully capable of discharging the responsibilities set out in the New York Fed’s policy, “Administration of Relationships with Primary Dealers,” or until the New York Fed decides to terminate MF Global’s status as a primary dealer.

link (http://www.newyorkfed.org/newsevents/news/markets/2011/an111031.html)

from wiki (http://en.wikipedia.org/wiki/MF_Global) -
MF Global (NYSE: MF), formerly known as Man Financial, is a major global financial derivatives broker. MF Global provides exchange-traded derivatives such as futures and options as well as over-the-counter products such as contracts for difference (CFDs), foreign exchange and spread betting. MF Global is also a primary dealer.

[Muzz]

Some more background on this. The man at the helm is a Goldman Sachs boy.

The #1 Question Of The Weekend: What Will Happen To MF Global? (http://articles.businessinsider.com/2011-10-29/wall_street/30335917_1_mf-global-jon-corzine-financial-crisis)

Jon Corzine Is Working at MF Global. Say What? (http://www.businessweek.com/magazine/content/10_21/b4179058860555.htm)

Jon Corzine is a member of CFR, Bildergerg

[Muzz]

From zerohedge - MF GLOBAL FINANCE FILES BANKRUPTCY (http://www.zerohedge.com/news/mf-global-finance-files-bankruptcy)

The msm are pumping out the fear for markets, this could be the tipping point.
MF Global: Likely Among the 10 Biggest Bankruptcies Ever (http://blogs.wsj.com/deals/2011/10/31/mf-global-likely-among-the-10-biggest-bankruptcies-ever/?mod=e2tw)


Based on MF Global’s disclosed assets in its bankruptcy filing, it is likely to slot in just ahead of Chrysler as the eighth-largest U.S. bankruptcy.

1) Lehman Brothers Holdings, September 2008: $691 billion in assets

2) Washington Mutual, September 2008: $327.9 billion

3) WorldCom, July 2002: $103.9 billion

4) General Motors, June 2009: $91 billion

5) CIT Group, November 2009: $80.4 billion

6) Enron, 2001: $65.5 billion

7) Conseco, 2002: $61.4 billion

MF Global: $41 billion (as of Sept. 30)

8) Chrysler April, 2009: $39.3 billion

9) Thornburg Mortgage May, 2009: $36.5 billion

10) Pacific Gas & Electric Co., 2001: $36.15 billion

[Lazlo]

They are (were?) leveraged 40 to 1. More so than Lehman.

The eurozone decision last week to arrange for a 50% haircut on Greek bonds was a de-facto default. By Friday the MSM was already reporting that Portugal had entered a Greek style death spiral.

The Greek deal may be a financial Maginot line. Throw a bunch of resources at it and watch the storm simply go around.

Hang on for a bumpy ride. As Muzz said...this could be the tipping point.

[Muzz]

On the court document it shows they owed $845,397 to CNBC. Wonder what that was for? Im sure that wont suprise anyone here but it may alert others to how much corruption there is. source (http://www.zerohedge.com/news/full-mf-global-bankruptcy-petition-which-we-find-corzines-bankrupt-firm-owes-cnbc-845397)

[Muzz]

CME Goes To Collateral DefCon 1: Makes Maintenance Margin Equal To Initial For... Everything!? (http://www.zerohedge.com/news/cme-goes-margin-defcon-1-makes-maintenance-margin-equal-initial-everything)

The most important news announcement of the day was not anything to came out of Cannes (as nothing did), nor from Greece (the merry go round farce there continues unabated). No, it was a brief paragraph distributed by the CME long after everyone had gone home, and was already on their 3rd drink. It is critical, because not only is this announcement a direct consequence of what happened with MF Global several days ago, but because also it confirms one of our biggest concerns: systemic liquidity is non-existanet. We confirmed interbank liquidity in Europe was at an all time low earlier today, and can only assume the same is true for US banks. But what is very disturbing is that this is just as true at the exchange level, where it appears the aftermath of the MF collapse is just now being felt. What exactly was the announcement. Unless we are completely reading it incorrectly, it is nothing short of a margin call for tens if not hundreds of billions worth of product. Because as of close of business on November 4, today, the CME just made the maintenance margin, traditionally about 26% lower than the initial margin for specs, equal. For everything. Which means that by close of business Monday, millions of options and futures holders will be forced to deposit billions in additional capital to the CME just so they are not found to be margin deficient, and thus receive a margin call. Naturally, since it is very unlikely that this incremental amount of liquidity can be easily procured in one business day, we anticipate the issuance of hundreds of thousands of margin calls Monday, followed by forced liquidations of margin accounts across America... and the world. Just like when Lehman blew up, it took 5 days for Money Markets to break. Is this unprecedented elimination in the distinction between initial and maintenance margin the post-MF equivalent of the first domino to fall this time around?

[Muzz]

Important update on the above post. See this (http://projectavalon.net/forum4/showthread.php?34094-WARNING-Derivatives-Traders-Face-Margin-Calls-Monday..-&p=348472&viewfull=1#post348472) post by glassstegallfan on jacks thread

[Muzz]

from zerohedge -

BCM Has Ceased Operations (source)
Posted by Ann Barnhardt – November 17, AD 2011 10:27 AM MST

Dear Clients, Industry Colleagues and Friends of Barnhardt Capital Management,

It is with regret and unflinching moral certainty that I announce that Barnhardt Capital Management has ceased operations. After six years of operating as an independent introducing brokerage, and eight years of employment as a broker before that, I found myself, this morning, for the first time since I was 20 years old, watching the futures and options markets open not as a participant, but as a mere spectator.

The reason for my decision to pull the plug was excruciatingly simple: I could no longer tell my clients that their monies and positions were safe in the futures and options markets – because they are not. And this goes not just for my clients, but for every futures and options account in the United States. The entire system has been utterly destroyed by the MF Global collapse. Given this sad reality, I could not in good conscience take one more step as a commodity broker, soliciting trades that I knew were unsafe or holding funds that I knew to be in jeopardy. more (http://projectavalon.net/forum4/showthread.php?35062-Hedge-Broker-Shuts-Down-Firm-With-Chilling-Letter-About-the-Market&p=359141#post359141)

[Muzz]

Jon Corzine Threated With Death By Jamie Dimon
December 15, 2011
By J. Michael Warner
Jamie Dimon CEO of JP Morgan Chase Threatens Life of Jon Corzine of MF Global

In a somewhat strange twist to the MF Global bankruptcy story, today Max Keiser said that Jamie Dimon threatened to kill Jon Corzine. When I first heard Max Keiser say that Jamie Dimon had threated the life of Jon Corzine, I was shocked. I thought maybe he was using the death threat in a dramatic kind of way and did not really mean it. Max Keiser was being interviewed by Alex Jones and ended up repeating the Jamie Dimon death threat concerning Jon Corzine numerous times during the interview, enough to realize that Max Keiser really believes it happened.

On October 31, 2011 MF Global an investment firm filed for bankruptcy. Jon Corzine was the CEO at the time of the bankruptcy. After the bankruptcy Jon Corzine abruptly resigned and went into seclusion. Jamie Dimon the other character in our little story is the CEO of JP Morgan.
The Tale of Jamie Dimon Threatening To Blow the Brains Right Out Of Jon Corzine’s Head

Our story begins with former Goldman Sachs CEO, former Senator, former Governor, the CEO of MF Global Jon Corzine. Jon Corzine being a rather simple fellow and not used to running an investment firm like MF Global, (disregard that he used to be the CEO of Goldman Sachs), was speculating with MF Globals money. Low and behold, after only running MF Global for about a year and a half, poor Jon Corzine had accumulated over $1 Billion in losses. Realizing that he had made this big boo boo and was not going to be able to make good on loans that MF Global had outstanding, poor Jon Corzine called up Jamie Dimon, the powerful leader of the five families, er, I mean the CEO of JP Morgan Chase. Jon Corzine carefully explained to Jamie Dimon that although he was very very sorry, he would not be able to pay back the paltry billion or so dollars that MF Global owed JP Morgan Chase. Much to Jon Corzine’s complete shock, Jamie Dimon then informed him, “You will raid the deposits that are in the accounts of your customers and pay me back.” He then said in a very deadly voice, a voice that stung Jon Corzine to the very bone, (can’t say soul, he probably doesn’t have one), “If you do not do as I say, you will swim with the fishes” and then Jamie Dimon hung up. Jon Corzine, a visibly shaken man, then authorized the theft of over $1 Billion dollars from MF Globals customer accounts and the money transferred to the Godfather, er I mean, Jamie Dimon the most powerful banker in the world.

The preceding story is as told by Max Keiser to Alex Jones, with a few embellishments thrown in by me. The embellishments in this short tale may make it seem rather humerus, but in truth, these people are deadly and that is how they are operating. Kind of a truth is stranger than fiction. Many an ordinary person doing their banking on a daily basis at JP Morgan Chase or investing with Goldman Sachs, will realize that they are dealing with mafia like organizations that are just as ruthless, just as deadly and 100 times smarter than Michael Corleone in the Godfather.

WoXooThB-_o


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source (http://thepoliticalcoffeehouse.com/2011/12/15/jon-corzine-threated-with-death-jamie-dimon/)

[Connecting with Sauce]

MF Global is discussed here:
http://www.silverbearcafe.com/private/12.11/implosion.html

And MF Global is discussed in the Real World of Money here:
http://www.oneradionetwork.com/moneyfinance/special-farewell-show-andrew-gause-and-the-real-world-of-money-facilitating-excess-borrowing-december-18-2011/