MF Global clawback

bronco2078

Supposedly a change in bankruptcy laws in 2005 is what sent jp morgan to the head of the line in the MF global bankruptcy

Here is the link ,



good news for JP Morgan bad news for the rest of us

roadrunner

Derivatives have head of the line privileges, at least in a securities firm bankruptcy. Wonder if the same applies in a commodities brokerage bankruptcy?

That's good news for BoA, Morgan Stanley, Goldman Sachs, and Citigroup as well since each of them holds over $50 TRILL in otc derivatives.
HSBC, WFC, BONY, and State Street are mere babes in the woods with only $1-4 TRILL each. Fwiw when Lehman went bankrupt the payout
on their otc derivatives was 9-13c per dollar.

The top 25 reporting US bank holding companies all have >$48 BILL in derivatives on the books. When I last checked my local bank 3yrs
ago they carried around $50 MILL in otc derivatives (5% total asset exposure). Time to check back again. With a total of $327 TRILL in otc
derivatives reported to the OOC by our top 25 banks, that's quite a pile of poop for head of the line privileges.

roadrunner

jmski52

He doesn't cite the specific part of the law, and this is the sort of thing you'd really need a legal opinion on. It might be instructive to follow the MF Global proceedings in detail, if they are available anywhere.

But really - we have to pass the 2000+ page law before we can know what is in it - true for the 2010 Financial Reform Law as it was for obamacare.

Nobody seems to know what we've got staring us in the face, but unsubstantiated blog posts don't help either. OTOH, I wouldn't put it past the Bush administration to have done this knowingly either.

We are screwed. I don't know the answer for it.

bronco2078

The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005

as passed

trying to get to the order of claims isn't an easy process. I find it hard to understand huge PDF files on a computer screen. A hard copy would be easier to read but impossible to search obviously

jmski52

"Only" 195 pages. That's really my point though. To really know what's going on, you would want an experienced bankruptcy law firm to research any legal precedents and then to issue a legal opinion that they could defend in court. A non-specialist has no clue.

That's exactly the problem with 2000+ page laws passed in the dead of night without review, and even worse are the ramifications of 10,000+ pages of regulations that get promulgated from the law itself. And most of the regs are written by 20-somethings just out of law school with no practical experience other than in writing detailed bs.

Nobody can know the unintended consequences of such rampant excess, but somebody does know what the intent was and I can't believe that the intent was for a good purpose. Just my opinion.

CaptHenway

Saw this today re the MF Global mess:

linky

streeter

Oh those Goldman sachs, Jp's and soros folks are so kind to front MFcorzine money to help them out of their troubles.

Prolly didn't even ask for anything.

But the world wide publicity will be rewards enough.

jmski52

Makes me wonder if there will ever be an end to the corruption.

roadrunner

<< <i>Makes me wonder if there will ever be an end to the corruption. >>



I think we're closer to the beginning.

bronco2078

More from "angry Ann Barnhardt"

I think the end of it got cut off . I listened to the mp3 version maybe one of the other links isn't cut off , I couldn't check I don't have the correct players for the others

annie get your gun

Its a good 20 minutes if you have the time

derryb

<< <i>Makes me wonder if there will ever be an end to the corruption. >>



What it will take is already being prepared for

rpw

And in a related news story, a team of engineers has converged on Cedar Hill Cemetery in Hartford, Connecticut to investigate the potential of J. P. Morgan's spinning body as source of renewable energy.