MF Global fires all 1,066 employees

Parent Cafe
1

<p>So much for 11/11/11 being a lucky day. But on a serious note, they will be paid until Tuesday, no severance packages and health insurance to expire in December</p>

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2

<p>To small to bailout.</p>

<p>With hundreds of millions still missing…the firm I’m with is still waiting for some of our money.</p>

<p>I wonder where the hundreds of millions are…</p>

3

<p>Where would they get the cash to pay anyone?</p>

4

<p>Well…they are supposed to have it…because it wasn’t their money. It was our money…and other firms’ money.</p>

<p>They were supposed to trade with their money. They could lose their money and our money is supposed to be ok.</p>

<p>Maybe… The money was just misplaced…and now it is floating in outer space.</p>

<p>Nobody knows where the money is…</p>

5

<p>This is a good article…
[MF</a> Global Clients: Few Options to Reach Cash- Bloomberg](<a href=“http://mobile.bloomberg.com/news/2011-11-11/mf-global-clients-frustrated-as-bankruptcy-keeps-assets-and-options-frozen?category=%2F]MF”>http://mobile.bloomberg.com/news/2011-11-11/mf-global-clients-frustrated-as-bankruptcy-keeps-assets-and-options-frozen?category=%2F)</p>

<p>“Ted Monjure, a 48-year-old Manhattan trader who has $27,252 frozen in a former MF Global Inc. account, said he’s considering pulling his money out of his three other trading accounts.
“I’m a high net-worth person, and I don’t want to see $1 million get smoked by another misunderstanding,” Monjure said, recounting how he had thought the Securities Investor Protection Corp. covered any losses due to a meltdown such as the one at MF Global. He’s now been told SIPC may not cover the money because it was in a futures account while he faces months of uncertainty as he files a claim seeking recoveries.
Monjure is one of many MF Global customers who can’t access cash from segregated accounts they once thought were as safe and accessible as bank deposits. Frustrated by a lack of legal options to reclaim frozen funds and dead-end inquiries to call centers and hotlines since MF Global’s Oct. 31 bankruptcy, many aren’t able to trade and say they’ve lost faith in retail brokerages and the regulatory system.
More than 150,000 customer accounts were frozen Oct. 31, with $5.45 billion affected, the day after a unit of the New York-based brokerage reported a “material shortfall” in customer funds that are required to be segregated under rules of the U.S. Commodity Futures Trading Commission.”</p>

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<p>And the bosses decreed: 40 to 1 leverage! And if we win! We get paid loads. (read: WE = MANAGEMENT)</p>

<p>But if we bet wrong, its on the customers. And they have SPIC to assure them. Haha. (Our legal fig leaf.) </p>

<p>Thank you taxpayers for what SPIC can not cover!</p>

<p>Thus; Those who are in the dealer position to play the game will always prosper.</p>

<p>**
Ques: When will the dopes finally realize that the fix has ALWAYS been in? **</p>

7

<p>The 1% cant steal anymore money out of the 99% because we are sucked dry, now they need to steal from each other.</p>

<p>If you add up all the debits and all the credits in the entire world what sum do you get?</p>

<p>Zero.</p>

8

<p>This is why I pulled most of my funds from Etrade a few years ago. We’ve had many discussions on the safety and security of brokerages at the office since the banking crash in 2008. I had never heard of MF Global before - were they a big player under the radar?</p>

9

<p>What MF Global does is not in my area of expertise…</p>

<p>The company was one of the larger firms in its space…</p>

<p>But the company isn’t large compared to the major investment Banks…</p>

<p>What is a problem is traders can’t get access to their money…and that is putting traders at risk…</p>

<p>Usually the accounts of firms thst get into trouble are sold quickly so traders can continue their businesses…</p>

<p>This time the accounting is so screwed up…there has been criminal activity…that the accounts have not been sold and traders are in
limbo.</p>

<p><a href=“http://www.marketswiki.com/mwiki/MF_Global_Holdings_Ltd[/url]”>http://www.marketswiki.com/mwiki/MF_Global_Holdings_Ltd&lt;/a&gt;&lt;/p&gt;

10

<p>I see, a baby Madoff.</p>

11

<p>Maybe…</p>

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<p>[Livid</a> S&P Futures Trader: I Can’t Work Because Of The MF Global Debacle](<a href=“http://www.businessinsider.com/mf-global-gerald-gottus-2011-11]Livid”>Livid S&P Futures Trader: I Can't Work Because of the MF Global Debacle)</p>

<p>“What’s problematic is individual futures traders like Gottus are not backed up by the SIPC (Securities Investor Protection Corporation).
“I had no clue that my money in these accounts would have zero back up,” he said. *
What’s more is people like Gottus probably won’t get all their money back.
Recent media reports show that MF Global customers hoping to retrieve their funds might have to share them with other customers. Basically, they will not get 100 cents for every dollar.*
He’s frustrated with Jon Corzine’s actions saying that the disgraced MF Global chief should “be in another business because he doesn’t know his business.”
“It’s disconcerting the fact that as a trader you take these calculated risks all the time and I find it very disconcerting that I have to pay for someone else’s miscalculated risks,” he explained.*
“The American people got duped from the financial industry.* I got duped by one of my own kind.”*
Gottus said he’s heard of other futures traders in the same boat as him.* They aren’t able to work because the assets are frozen.
Here’s the problem: As opposed to all other traders, futures traders “don’t really own anything per se” because they don’t usually have positions unless they hold overnight, he said.* All of the futures traders’ money is in cash, he explained, adding that since they don’t have any positions, everyone else assumes it’s just cash.”</p>

13

<p>“MF Global fires all 1,066 employees”</p>

<p>They deserved it! Bad employees! Let them buy their own health care!</p>

14

<p>BC–</p>

<p>MF is a very old and established clearing company. They never made trades or took positions before. But, the years and years of the FED keeping interest rates so low, and certain rule changes vis a vis making money from interest, made them less profitable then they had been.</p>

<p>The brought in Dr. Goldman to take positions. I doubt they meant to take 40-1 postitions, but once you have Dr. Goldman in charge, you tend to believe you are too big to fail. Corzine had no experience with being forced to quickly unwind a position. In the past, in situations like this, he’d had 7 months to a year to get out of it.</p>

<p>Anyway, it’s a shame about MF. Some people your age had spent their entire career with them. Lesson: if you are a trader and they bring in someone from Goldman to run it? Get out of there.</p>

<p>Look at the record. They really don’t do all that well outside the protective bubble of the favored ones.</p>

15

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<p>That’s it, in a nutshell.</p>

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<p>This always has been THE problem.</p>

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<p>So true…</p>

17

<p>This is a situation where an incompetent CEO (Corzine) playing with other people’s money made a big risk that went bad.
The missing $600 million is another facet of this mess. I’m not sure whether it is still missing.</p>

<p>Bankruptcy and no bailout is the perfect answer for this. Interesting to see what the criminal investigation reveals.</p>

<p>Without getting too political, Corzine is a typical liberal Democratic who likes to spend other people’s money (i.e. your money). He did all kind of antics in NJ, including being caught on email negotiating union contracts with his girl friend, who was representing a public union. He was considered for Treasury Secretary in Obama’s cabinet , and was recently rumored to be on line to replace Geithner, who will probably be removed before the election because he is a political liability.</p>

18

<p>shadow- email negotiating union contracts with his girl friend, who was representing a public union- that is not true.</p>

<p>She e-mailed him to get involved he refused. The contract that was finally agreed to was deemed unacceptable to her and her local.</p>

19

<p>The state of New Jersey spent $127,000 plus to block the release of 123 emails. Corzine was negotiating a state workers contract; his ex girlfriend was the president of a large state worker union. Corzine had paid her millions of dollars when he was senator. I suggest his conduct as governor doesn’t pass even New Jersey’s smell test.</p>

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<p>shadow- he argued the release of e-mails on executive privilege grounds. When they were finally released they showed he never negotiated with her. She campaigned against acceptance of the contract. You are just factual incorrect. She initiated the e-mails and for that was bounced from her union position.</p>