Anyone pulling money out of MF Global?

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Dear Associate,

The following hyperlink connects you to today’s CNBC.com article from John Carney.

http://www.cnbc.com/id/45508369

If you are outraged at Jon Corzine’s brazen silence regarding missing (reads: “stolen”) customer funds, I suggest you personally contact the Office of Cyrus R. Vance, Jr., the Manhattan District Attorney. Call 212-335-8900 and request the Major Economic Crimes Bureau. My personal opinion, as a citizen, is that together we can bring to bear considerable pressure on both local and federal authorities to file criminal charges against Jon Corzine, COO Brad Abelow and other miscreants involved in this unprecedented theft of customer funds.

What is at stake here is more than just missing investor money. The future course of events will determine whether we are a nation of Laws (a Republic) or a nation of Men (an Oligarchy). Jon Corzine’s wealth & political connections to the white house do not exempt him from obeying the law, or from facing prosecution for violation of Federal and State Laws.
 
Quote from Wallace:

THE major problem is the lack of insurance
More...

That should be an alarm bell. People will insure *anything*, for the right price. If insurance is unavailable, it is a clear sign that a substantial risk is being ignored/mispriced.
 
Global Securities a full service futures broker here in Vancouver, Canada will provide an
additional $9 million in coverage: http://www.globalsec.com/about/investor_protection.aspx

'After MF Global, futures industry rethinks bailout fund'
by Ann Saphir CHICAGO Reuters – Thu, Nov 24, 2011 1:09 AM EST
"In November 1986, shaken by traders' losses after a brokerage went bust, the U.S.
futures industry considered, and then rejected, the notion of insuring customer
funds in a broker default. . . .
After the collapse of the Bernie Madoff ponzi scheme in late 2008, SIPC raised
its broker assessments from a flat $150 per firm per year to a quarter of a percent
of yearly operating revenues, costing bigger firms hundreds of thousands of dollars
Horwitz said. All told SIPC collected $410 million last year. . . .
The safety of customer fund segregation was also among the reasons that NFA
cited when it recommended against adopting a bailout fund 25 years ago, in the
wake of the collapse of Volume Investors, a brokerage on New York's Commodity Exchange."
http://finance.yahoo.com/news/mf-global-futures-industry-rethinks-060910193.html

'a flat $150 per firm per year' are you kidding me ?
". . . costing bigger firms hundreds of thousands of dollars Horwitz said. — read
Humongous firms with Humongous profits
and futures brokers are complaining about what might be a few hundred dollars
a year to pay for client insurance ???

what's needed is an NFCA - National Futures Clients Association, since the Protection —
Guarantee of clients' funds is obviously Not the priority of the NFA, nor the CFTC
 
Quote from Wallace:

Global Securities a full service futures broker here in Vancouver, Canada will provide an
additional $9 million in coverage: http://www.globalsec.com/about/investor_protection.aspx
........
More...

Usually on such broker policies there is an outside limit on total payouts across all clients that makes them of little value in a case like MF Global where many clients suffer losses.

For example, the policy might be for up to $9 million per client up to a total loss amount of $25 million across all clients.

Is that the case with this Canadian broker?

Of course Canadian brokers cannot accept U.S. clients under U.S. regulations unless they are also registered in the U.S. (and in the latter case they would normally have a U.S. subsidiary for U.S. clients so that you would not get the Canadian protection).
 
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