A Big Broker Goes Broke. MF Global Files for Bankruptcy

[AsstModerator]

A Big Broker Goes Broke. MF Global Files for Bankruptcy.

A Big Broker Goes Broke
MF Global Files for Bankruptcy​

For anyone who missed it, MF Global filed for Chapter 11 bankruptcy on Monday.

Chapter 11 bankruptcy is for reorganization. The SIPC (Securities Investor Protection Corp.) is suing to force MFGlobal into liquidation. It looks like liquidation is happening.

MF Global isn't a small company with a few thousand retail forex traders. It is a worldwide financial firm offering a broad range of trading capabilities. This is the biggest financial firm to go under since Lehman Brothers collapsed in 2008.

There are accusations of debt levels being disguised to make quarterly reports look better. There are lawsuits linking it to Ponzi schemes. There are allegations of money missing from some segregated accounts.

This story is still developing.

MF Global's press release for bankruptcy filing

MF Global to be liquidated

Traders accounts may face margin calls

Ponzi victims sue MF Global

Wall Street Journal reports possible hiding of debt levels

Possible insider trading of MF Global Bonds

CNBC's advice for people who invested with MF Global

FPA Review Page for MFGlobalFx

 

[AsstModerator]

CFTC-SEC Statement on MF Global

Washington, DC – The Commodity Futures Trading Commission and Securities and Exchange Commission today made the following joint statement:

“For several days, the SEC, CFTC and other regulators had been closely monitoring developments affecting MF Global, Inc., a jointly registered futures commission merchant and broker-dealer, in anticipation of a transaction that would include the transfer of customer accounts to another firm. Early this morning, MF Global informed the regulators that the transaction had not been agreed to and reported possible deficiencies in customer futures segregated accounts held at the firm. The SEC and CFTC have determined that a SIPC-led bankruptcy proceeding would be the safest and most prudent course of action to protect customer accounts and assets. SIPC announced today that it is initiating the liquidation of MF Global under the Securities Investor Protection Act (SIPA).”

CFTC-SEC Statement on MF Global

 

[herbicat]

:shocked: My futures account is in limbo along with many others at MF Global. I had thought a big name like MF Global would not be involved in the theft of client funds - wrong.
In case you think this does not effect us all remember that this is not unregulated FOREX. It takes a crime network to get at segregated client funds which have controls that have to be audited and verified. Effectively the safeguards in the United States are not effective to protect client funds. Apparently our accounts are protected by the "honor system" until they are missing and regulators and law enforcement get involved - too late.

Corzine is probably part of a larger crime network centered around Goldman Sachs. I wonder what he did to NJ as governor and what they would have done to California if they (Goldman Sachs) got Mag Whitman elected governor. Are these criminals at the CME? Is this why SEC laws are not enforced for High Frequency Trading as they run algorithms that "stuff the quote" and other band and unfair trading activities? Notice that Goldman Sachs people often are in high political positions. Is this why America keeps opening up new fronts in its "no exit" wars?

It's time we start asking a lot of questions and demand answers. These criminals threaten our way of life and well being.

 

[Gumrai]

I have a UK spread-betting account with MF Global.
I'm amazed that I have not received anything from them about this.
I had a statement on the 2nd November from them showing a balance of just under 5,500 Pounds. In very small letters underneath is the info with names of the appointed administrators, but no details of how to contact them.
I have been unable to connect with my account and really do not know what my next step should be.
Hopefully as they are regulated with the FSA, I will have some protection

 

[Gumrai]

For UK customers, details are not easy to find and it seems that you can only email the administrators and wait for a reply

email MFGlobalenquiries@kpmg.co.uk

source

KPMG in the United Kingdom - Audit, Tax, Advisory | KPMG | UK

I have sent an email regarding my account, but as there are 10,000 UK clients, I don't expect a speedy response

 

[Max]

I will protect the law of Great Britain and the Queen?!

I'm shocked! I was sure that the name of MF Global guarantee a quiet life. Now what? Who can I trust? what is to be sure? I am a customer MF Global UK, I expect a full refund of my money from the account in the company.
For my money, are responsible both U.S. and UK. This is all under their responsibility. They pass laws and are required to monitor their company which issued the license for their activities. This is not a private matter of one company, it is a political issue!
Please ForexPeaceArmy help their members. Do not leave them alone in trouble!

 

[herbicat]

What to Do now MF Global

First thing you need to do is file a claim with SIPC, and maintain all your records and account statements. Contact the regulating authority in your country that applies to MF Global and file with them as well.

 

[Zealot]

I'll be honest, as soon as I read the news from someone sharing a link from Zero Hedge, I checked my email to see if I had anything from the FPA. I was disappointed to see that I had nothing and I'm even more disappointed to see this being addressed only today.
But even more, that no one here raised alarm bells one month ago, or at least Thursday/Friday 27/28 of October when things were starting to look pear shaped.

It's in times like these that we need the Generals to show up and tell us to pull back with enough time in advance.

 

[Max]

What do you think about this?

Suddenly I got a message from the company "IRONBEAM" Here are the contents of this letter:

"Ironbeam strongly encourages MF Global customers to act quickly by switching to a new brokerage after MF Global filed for Chapter 11 bankruptcy today.
We are recommending that customers complete application with our firms and we are working with the CME GROUP to assist client in getting their funds out of MF global.

I have attached a transfer form to get this done.
Our online account application can be completed here......"

What do you think about it? Is another hoax?
Or, you can trust in it?

 

[herbicat]

Suddenly I got a message from the company "IRONBEAM" Here are the contents of this letter:

"Ironbeam strongly encourages MF Global customers to act quickly by switching to a new brokerage after MF Global filed for Chapter 11 bankruptcy today.
We are recommending that customers complete application with our firms and we are working with the CME GROUP to assist client in getting their funds out of MF global.

I have attached a transfer form to get this done.
Our online account application can be completed here......"

What do you think about it? Is another hoax?
Or, you can trust in it?

Sounds like they want to try to get your account when it is distributed. They will then notify SIPC that you will transfer to them Sounds SCAMISH!

So far the word is that accounts with a position on will be transferred by today. Sounds like only the margin to maintain those positions.
The rest will be transferred in one of two ways I have heard. If you work with a broker that clears through MF Global they arranged a transfer and if you are simply under MF Global SIPC may just assign you to someone (rumor?). Probably not someone like Ironbeam but who knows. Lots of BS about what will happen. Personally I do not expect to see the stolen percentage for years if ever.
Verify everything and do not trust any of these scumbags. All the rules have changed if client funds cannot be held securely.