Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member Latest Breaking News Editorials & Other Articles General Discussion The DU Lounge All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

DemReadingDU

(16,002 posts)
2. PFGBest Is Now MF Global Part 2 As $220 Million In Segregated Client Money Has Just Vaporized
Mon Jul 9, 2012, 06:39 PM
Jul 2012

Oops

7/9/12 PFGBest Is Now MF Global Part 2 As $220 Million In Segregated Client Money Has Just Vaporized

Remember when the entire segregated account fiasco was supposedly fixed in the aftermath of the November 2011 MF Global bankruptcy, and where regulators: the CFTC, the SEC, the CME, and anyone you asked, swore up and down this would never happen again?

Turns out that 7 months later, the spirit of MFGlobal has struck again and it's name is PFGBest, as we suggested first 3 hours ago when we broke the story. From the just filed affidavit by Lauren Brinati who is working with the National Futures Association, which in turn has just filed notice prohibiting PFGBest from operating futher, and freezing all of its accounts:

"On July 9, 2012, NFA made inquiry with US Bank and learned that rather than the $225 million that PFG had reported as being on deposit at US Bank just days earlier, PFG had only approximately $5 million on deposit at U.S. Bank."

Translation: another $220 million segregated account pillage, in the vein of none other than Jon Corzine and MF Global.

The money has now officially vaporized.

more,
http://www.zerohedge.com/news/pfgbest-now-mf-global-part-2-220-million-segregated-client-money-has-just-vaporized

Recommendations

0 members have recommended this reply (displayed in chronological order):

Latest Discussions»Issue Forums»Economy»Futures Brokerage PFG Bes...»Reply #2