MF Global: Where's the Cash? -- Part II | ZeroHedge - 0 views
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Gary Edwards on 16 Feb 12It's complicated. The bottom line is that we know where the $1.6 Billion in customer assets, squandered and "lost" by Corzine, is. JP Morgan is holding the bulk of it, and due to recent changes in the 546(e) section of the Federal Bankruptcy code, JP Morgan and the other big banksters will be able to keep that money from it's rightful owners. Oh, yeah. One other thing. The big banksters now running off with the assets of investors are the very same people who lobbied hard and heavy ($$$) to have the changes in the code pushed through by their unwitting stooges in Congress. excerpt: This week in The Institutional Risk Analyst we published a comment on the ongoing financial genocide at MF Global, "MF Global: Where's the Cash?" http://us1.irabankratings.com/pub/IRAstory.asp?tag=515 The comment correctly identifies the location of the "missing" $1.6 billion as JP Morgan Chase and other bank custodians of MF Global. The trouble is that even though we now know where the missing customer money has gone, namely JPMorgan, there is little chance that the defrauded customers of Jon Corzine will ever recover a dime. Here's the link to a video by William Rochelle of Bloomberg News explaining how the safe harbor in Section 546(e) of the Bankruptcy Code likely will prevent MF Global customers from ever getting their $1.6 billion back -- even when it's located, as it has been evidently. ... (MONEY SHOT) The problem here is that the existing laws against pillaging customer accounts and other acts of fraud are in conflict with the bankruptcy statute designed to make the world safe for large banks and over-the-counter derivatives. Specifically, the post 2005 bankruptcy laws prohibit trustees from clawing back the $1.6 billion in stolen customer funds. Indeed, the Bankruptcy Court and trustee are precluded from pursuing the banks just as the trustee in the Madoff fraud has likewise been stymied. In addition to the clients of MF Global who were ap