muses of the moment

November 19, 2013

MF Global has to pay

Filed under: MF Global bankruptcy — totallygroovygirlfriday @ 11:35 am

MF Global is forced to pay back funds to customers and a fine. Click here.

Groovygirl is still not sure if this gets all customers whole or not. The article says it does, but gg would like to hear from customers. Especially since customers accounts were “closed” but their trades were not for up to 3 days. despicable!

The $100 million fine is a drop in the bucket, more like a slap on the finger.

The good news is customers can still sue Corzine in civil court. Groovygirl would be interested to know if customers must give up their restored funds in order to get the chance to sue Corzine in civil court. And where, southern New York?, can the customers sue Corzine and his cohorts?

Side musing: again, gg must state that your broker and your broker’s broker is not a completely safe place for your money. Customers lost cash and gold, not just trading accounts in the MF Global bankruptcy. And they have now admitted what we all know they did: take customer funds, any funds under MF Global brokerage, to pay losses of their house trades. We presume this was a derivative trade(s) gone bad.

Only hold monies you trade with at a brokerage. If you do alot of trading, spread that over 2-3 brokerages that have different parent trading houses. If you are holding a trade more than 6 mos, get a certificate in your name.

This will happen again. Your money is not your money at the brokerage or the bank. With bail-in plans in formation, the outcome may not be restitution within 2 years as it was with MF Global. The legal fees alone probably puts the MF Global customers in the hole. GG hopes those are tax-deductible legal fees. Probably not…..

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