muses of the moment

March 28, 2012

This should be good….

Filed under: Credit Derivatives, Economic Crisis, MF Global bankruptcy, Odds 'n ends — totallygroovygirlfriday @ 12:33 pm

FASB wants to change the accounting rules that allowed MF Global to hide their true exposure. GG sure hopes this is just for a public relations show. Because, all financial houses use repo to maturity. There would be no market left, it would blow up. Balance sheets would be a mess.

No, no, gg knows what will happen: the big five will be exempted and all the small fries will be forced out of the market. Rules in place, systemic collapse…still a problem.

There is no solution to the huge derivative problem. They will blow up. The only question is when, and how much of it can the banks unload on sovereign funds and taxpayers before it finally happens.

Click here.

MF Global was financing its European sovereign debt bets through “repo-to-maturity” transactions, which allowed it to move the exposure off its balance sheet, even though the firm still faced enormous risk in the case of a default.

FINRA and the SEC ultimately forced MF Global to increase its capital. The firm later disclosed the capital infusion in September.

Since then, lawmakers and regulators have raised questions about whether the accounting treatment used by MF Global for its repo-to-maturity transactions is appropriate, or whether it may have hindered regulators from catching problems sooner.

“That is a loophole so big you could drive a Mack Truck through it,” Democratic Senator Kent Conrad told Schapiro during a hearing in December. “If that’s not closed down, we really got to ask ourselves what we’re doing.”

Even if you close the loophole on future transactions, you can not apply it to past transactions without blowing up the whole system. New debt, that depends on very interesting loopholes in accounting rules, is the only thing keeping this thing from going down. There is no solution. The option is controlled or uncontrolled and groovygirl is not even sure that is possible with different global entities and countries trying to solve their local problems first in spite of the global waves.


  1. GG, here is interesting info from “Rumor has it”, comes around now and then throught the IF ~ Bob Chapman.

    IF 03-28-2012

    From a Subscriber:

    Hi Bob—Rumor has it that a daisy chain of brazen criminality along the following lines led to MF Global ‘s demise—three days before the MF Global bankruptcy JP Morgan had a $200 million overdraft type margin call on the London LIFFE Exchange—the 2nd in a row——four days earlier JPM also had an overdraft for $175 million also on The London International Financial Futures Exchange (LIFFE)—which is the Brit Sodom and Gomorrah equivalent of the Chicago mercantile exchange in the USA—so JPM was on deck for 2 consecutive margin calls in the Citi of London—rumor has it that the dust up above might have pertained to naked/NO MONEY DOWN — Euro currency put options that were written by JPM with the transactions being placed through the CME Group shysters and the London LIFFE Exchange shysters.—SOME HOW —MF Global took the opposite side of the SAME trades—rumor has it that this JPM-MF Global criminal tango was somehow made possible through the use PROMIS software—which caused the mother of all problems for the——- ISDA’s (International Swaps and Derivatives Association) —this JPM-MF Global criminal counter party tango—which has now put the ISDA’s (International Swaps and Derivatives Association) in legal liability box— SLAUGHTER HOUSE—the ISDA’s brazen stonewalling that declared the latest Greek bailout a NON CDO INSURABLE non-credit event rather than what it really is, a A 100% —NEON SIGN—CDO ACTIVATING—INSURABLE Greek default.—as per some or all of the above ISDA’s stonewalling decision has temporarily criminally enriched the too crooked to fail banks, as well as GS and JPM and robbed the hedge funds of legitimate gain as well as the looted customer segregated accounts that were tied to MF Global.—rumor has it that JPM had some money laundering problems along the following lines—the JP Morgan SWIFT wire transfer —(to pay for their derivative trades)— was rejected by the London LIFFE Exchange-which might have had something to do with the Dallas FED pulling JPM’s line of credit—so there was some kind of involuntary type —GLITCH—amongst the band of thieves—– that was imposed on JPM that annoyed the hell out of them—rumor has it that there might have even been some major co-religionist vs. co religionist type HEAD BUTTING type nastiness along the following lines—Dallas Fed chair Richard Fisher actually ratted out—sang like a canary— to the NY Fed about that bounced SWIFT charge back ——sang like a canary—that JPM was using TARP money (Troubled Relief Asset Program) to write their Euro currency option derivatives—AND THAT THIS SHYSTER TYPE EURO trading by JPM——-BY Dallas Fed chair Richard Fisher — violated the terms of the 2008 Bush-Pelosi bank bailout that banned banks like GS and JPM from using U.S. Taxpayers’ money to engage in any type of ROUTINE CRIMMINALITY type SPECULATIVE derivative trading—which really rained on JPM’S money laundering parade——rumor has it that shortly there after — Jamie Dimon, CEO of JPM did some kind of a —-BAGEL BOYS ONLY——— conference call —and phoned Ben Bernanke, Tim Geithner and CFTC Chair Gary Gensler and— spilled his guts— regarding his SWIFT—GLITCH— charge back dilemma—somehow it was—VIA GROUP HUDDLE— decided that MF Global would be thrown under the bus to save JPM —rumor has it an—APPROXIMATELY AN hour or so LATER—the SHYTER CME Group re-issued the second margin call NAMING-BLAMING-RATTING OUT—only MF Global and removing JPM from its BRAZEN CRIMMINAL liability—rumor has it that in the same time frame Jamie Dimon called Jon Corzine —and offered him the choice between PLAN A—being with the fishes permanently or PLAN B— demanding that MF Global SUICIDE ITSELF/BUT CORZINE WOULD LIVE-if they covered the $200 million margin call that was originally issued for JPM—in about the same time frame—the ISDA ruled the MF Global trades to be null and void—which was followed by JPM and Jamie Dimon——- PIGGING OUT——– by shorting the MF Global stock—based on 100% INSIDE INFORMATION WHICH THEY THEMSELVES HAD 100% CRIMINALY CREATED—which you have reported countless times in the IF and on countless radio shows———-rumor has it that in the same time frame—Dallas FED chair Richard Fisher immediately phoned Bernanke to— bitch and moan— about some or all of the above— and that Bernanke might have told Fisher—something along the following lines—”Geithner calls the shots”— rumor has it that Dallas Fed chair Richard Fisher will soon be out of a job————most likely the entire subscriber base will be thinking—”what the———— FFFFFFFFFFFFFF——- is going on here”———–but as per your constant reporting in the IF and on your countless radio shows—THERE IS—UNFORTUNATELY—— ZERO OF ANYTHING UNUSUAL ABOUT SOME OR ALL OF THE ABOVE—this kind of brazen —GENGIS KHAN—type stealing on the part of the SATANIC ILLUMINATI BANKER ruling class—BOTH IN AMERICA AND IN THE EU— has been going on for hundreds if not 1000’s of years———–but this is the first time it has been exposed the way it is being exposed now——-rumor has it that JPM has made a plea bargain type -SWEETHEART—deal with their financial regulators co religionist cronies—to rat out their own broker dealers to the feds in return for these same entirely criminalized regulators to— see no evil-hear no evil— regarding some or all of the above—I KNOW LESS THAN ZERO ABOUT ANY OF THE ABOVE—THEY ARE ALL JUST A BUNCH OF 100% COMPLETELY BASELESS WASHROOM WALL TYPE RUMORS.

    Comment by Aj — March 29, 2012 @ 10:27 am

  2. Aj,

    Thanks for the comment. Groovygirl understands that this is rumor, however, hearsay can be used to eventually find the truth. A meeting to decide who will be thrown under the bus prior to the implosion would explain a lot of the after the fact cover up and suppression and Edith pleading the 5th yesterday. No need to plead the fifth if you are not feeling threaten in some way.


    Comment by totallygroovygirlfriday — March 29, 2012 @ 11:59 am

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