You are viewing an obsolete version of the DU website which is no longer supported by the Administrators. Visit The New DU.
Democratic Underground Latest Greatest Lobby Journals Search Options Help Login

Reply #56: Karl Denninger: Clawback Risk. Must Read! [View All]

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
Home » Discuss » Latest Breaking News Donate to DU
DemReadingDU Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Dec-06-11 09:22 AM
Response to Reply #55
56. Karl Denninger: Clawback Risk. Must Read!

12/6/11 Karl Denninger: Clawback Risk

Even if it turns out that your funds as a customer were stolen through a rank violation of the segregation that is supposed to be in place, JP Morgan and Bank of America, among others, want to be able to claw back your money should their claims against the bankrupt entity prove up. (read following article)

So much for the alleged "separation" that the entire premise of brokerages rest upon -- that your free cash and margin deposits are yours and are not "investments" in the underlying business of the firm you are choosing to trade with.

If you think this risk doesn't apply to you and you're in the market in any way, shape or form you're quite-simply wrong.

12/6/11 Dimon eyes clawback
Chase leads block of MF distribution

Mf Globals burned commodity customers turned their ire from Jon Corzine to Jamie Dimon yesterday after MFs creditor committee, led by Dimons JPMorgan Chase, objected to a plan to distribute $2.1 billion to customers who have seen their accounts frozen since Halloween.

In a Manhattan bankruptcy court filing, the creditors committee, which also includes Bank of America and hedge fund Elliott Management, said they want more assurances that the $2.1 billion is not their money.

Among their requests: They want customers to agree in writing that the money they receive could be clawed back.

Printer Friendly | Permalink | Reply | Top

Home » Discuss » Latest Breaking News Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002
Software has been extensively modified by the DU administrators

Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC