Reply #73: Trustee Says MF Global May Have Stolen $1.2 Billion in Customer Funds

[Demeter]

JessesCafeAmericain+%28Jesse%27s+Caf%C3%A9+Am%C3%A9ricain%29&utm_content=Google+Reader" target="_blank">http://jessescrossroadscafe.blogspot.com/2011/11/truste...

...The twist here is that the Trustee may be accruing those losses to the customers even where there is some discretion. One would think that the customers should be paid first out of all MF Global creditors. But I suspect that where it is possible, their loss will be subordinated to the unsecured creditors like JPM who have a powerful influence with this Trustee and the courts. The customers of consequence, like the Koch brothers, appear to have been tipped off weeks in advance.

This is the perversity of law without justice.

If that happens, then nothing is safe. If a customer in cash and Treasuries can be robbed, and then be made to stand in line with unsecured creditors, then your 401(k)s are not savings but loans to the custodians of your plans. Now may be the time to exit all arrangements not specifically guaranteed directly by the government, and bring your money home. And better yet if no guarantees are required, and no parties standing between you and your wealth.

If they steal from one unpunished, they can steal from any and all almost at will. You are not an insider, and there is no honor among thieves. You are prey. And what are a few customers, and the stewardship of funds, to a group of financiers intent on taking down whole nations and their Treasuries?