I did some more work on this yesterday and I will have an update later today. It appears the big problem is that they still have not untangled the accounting of MF Global, and thus they haven't figured out how much customer money is missing. Until they do that, they won't release the funds.
Of course there may also be legal issues as to whether the banks will fight the release of the customer segregated funds in front of the bankruptcy, but lets hope a sensible judge sides on the side of the customers for that.
At this point, customers remained frustrated, with little few answers from anybody. The folks at R.J. O'Brien don't have any answers, nor does the SIPC or the MF Global Trustee.
Re: My sympathies
yalanand
11/9/2011 1:07:54 AM
Suing MFGlobal will get them no where.Might as well wait and watch for the dust to settle and see how much cash will be returned to investors.
@Ashish, you never know. What if court rules in favour investors ? Then MF global will not only pay the cash that is due but it has to pay heavy penalty for causing this disruption to the livelihood of so many investors.
Re: JP Morgan Legal Motion
yalanand
11/9/2011 1:04:07 AM
I wish it would succeed but the entrenched interests are so huge that the chances of a total and clean reboot of the Global Financial System are remote at best.
@Ashish, true. I agree with what you are saying. But its not impossible task. All we need is will to do that. I hope occupy wall-street will help us enforce that will on authorities.
Ashish,
I really hope you are wrong, and that something will change. Though I fear you are right and things will stay the same....
Re: JP Morgan Legal Motion
Value Hiker
11/8/2011 4:48:13 PM
Anish,
Sorry to get you upset. But it is better than your brokerage gets you upset later on. One sad fact I learned from the history of Great Depression: many extremely conservative investors who put their money in CDs, never touched a single stock or bond, got wiped out because they put their moneys in just one local bank.
FDIC & SIPC was invented to prevent such tragedy happen again. But if FDIC & SIPC is insolvent as many experts suggests, there is no prevention of history to repeat itself. I am sure that Government will finally step in to save the depositors and investors, but it may takes months or years before you can get your cash or equity back, what will you do in the between?
As Scott suggests, it is better to divide your portfolio into several reputable brokerages, instead put all your eggs in one baskets. If Lehman Brothers, AIG, Bear Sterns can go belly up, I don't know why Citi, Bank Of America can not follow in the future. Actually they were bankrupt if they were not saved by us, taxpayers.
Anand,
Suing MFGlobal will get them no where.Might as well wait and watch for the dust to settle and see how much cash will be returned to investors.
Regards
Ashish.
Re: JP Morgan Legal Motion
back2basicz
11/8/2011 12:58:23 PM
Value Hiker,
Thanks for making me even more wary about my investments in the American Financial System.
Not exactly encouraging words these are I am afraid to say so.In fact I wouldnt be surprised if lot of people/investors get spooked after understanding/appreciating the magnitude of this statement.
After all its all about the trust.If we cant trust that our money will be safe in the safest of situations(like here where the non-leveraged accounts suffered the most)than who/what can we trust?
Regards
Ashish.
Telecom,
I am afraid I don't see much change in the behavior of people after this disaster.
People will always try to push the system as much as they can.
The Regulators at SEC and Federal Reserve were asleep before and will continue to stay asleep frankly because they are in bed with the institutions they are supposed to police/govern.
Its just a bunch of revolving doors for most of them-Jump from SEC to Wall Street and Back.Not exactly a great way to deal with this issue.
Regards
Ashish.
Re: JP Morgan Legal Motion
back2basicz
11/8/2011 12:50:02 PM
Driven,
Corzine is the same guy who blew millions of Dollars on a campaign to become Governor of New Jersey.
And when he did become Governor he just got into bed with the Unions and totally messed up the States Finances so much so that it is now on the verge of Bankruptcy.
After wrecking New Jersey he moved back to Wall Street to wreck MF Global.
The pattern is the same,enrich yourself ,destroy your parent company.
Regards
Ashish.
Re: JP Morgan Legal Motion
back2basicz
11/8/2011 12:45:03 PM
anand,
I don't know how much the Occupy Wall Street campaign will really establish.
I wish it would succeed but the entrenched interests are so huge that the chances of a total and clean reboot of the Global Financial System are remote at best.
Regards
Ashish.
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