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MF Global clawback

bronco2078bronco2078 Posts: 10,212 ✭✭✭✭✭
in Precious Metals


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

Comments

  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭
    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
    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • jmski52jmski52 Posts: 22,822 ✭✭✭✭✭
    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.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • bronco2078bronco2078 Posts: 10,212 ✭✭✭✭✭

    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
  • jmski52jmski52 Posts: 22,822 ✭✭✭✭✭
    "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.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • CaptHenwayCaptHenway Posts: 32,115 ✭✭✭✭✭
    Saw this today re the MF Global mess:

    linky
    Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
  • streeterstreeter Posts: 4,312 ✭✭✭✭✭
    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.image

    But the world wide publicity will be rewards enough.image
    Have a nice day
  • jmski52jmski52 Posts: 22,822 ✭✭✭✭✭
    Makes me wonder if there will ever be an end to the corruption.
    Q: Are You Printing Money? Bernanke: Not Literally

    I knew it would happen.
  • roadrunnerroadrunner Posts: 28,303 ✭✭✭✭✭


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



    I think we're closer to the beginning.

    Barbarous Relic No More, LSCC -GoldSeek--shadow stats--SafeHaven--321gold
  • bronco2078bronco2078 Posts: 10,212 ✭✭✭✭✭


    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

  • derrybderryb Posts: 36,792 ✭✭✭✭✭


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



    What it will take is already being prepared for

    "Interest rates, the price of money, are the most important market. And, perversely, they’re the market that’s most manipulated by the Fed." - Doug Casey

  • rpwrpw Posts: 235 ✭✭
    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.
    imageimage Small Size National Bank Note Type Set $5-$100
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