Topic: RED ALERT: It's Open Season on All Customer Funds

[Pandora]

This fits in at least two other categories, but I want y'all to see it.

 

" The NFA is collusion with the Banksters, government and judiciary have achieved their goal. The entire concept of "customer segregated funds" is officially, completely, legally dead.

Guys, it is OVER. I know that many of you are still cowering in normalcy bias, unable to deal with reality, unable to face the world as it is, but you have GOT to snap out of it. The marketplace is DESTROYED. You CANNOT be in these markets. All legal protections are now officially gone.

Do you remember how I told you about the Ponzi scheme that imploded in 2007 called "Sentinel Management Group" that stole over $500 million in customer funds? The NFA was the auditing regulator of Sentinel, and the NFA admitted after the Sentinel Ponzi imploded that they signed off on their audits even though the NFA claimed not fully understanding Sentinel's books or accounting methods. In other words, the NFA didn't really audit Sentinel at all - they just PRETENDED to audit them, drew up some forms, had some robosigners sign off, and then just hoped that when the sh*t hit the fan, everyone in the industry would be so terrified of the NFA that no one would hold the NFA accountable for their criminal malfeasance - or even talk about it.

Sentinel took customer segregated money and fraudulently used it as the collateral on a loan from Bank of New York Mellon for $312 million to fund their own in-house proprietary trading operations. When the Sentinel Ponzi collapsed, BNYM sued to go to the front of the line of creditors - ahead of the customers of Sentinel whose money was fraudulently used as collateral, which has now been "linguistically sanitized" into the word "hypothecated".

The federal appeals court ruled yesterday that not only does BNYM stay at the front of the line, but that using customer segregated funds as collateral is NOT a crime, and that co-mingling customer segregated funds with proprietary funds is NOT fraud.

Here is the Reuters piece.

Read this quote from the ruling, which is, in essence, the entire financial market paradigm being guillotined:

    That Sentinel failed to keep client funds properly segregated is not, on its own, sufficient to rule as a matter of law that Sentinel acted ‘with actual intent to hinder, delay, or defraud' its customers.

    U.S. Circuit Judge John D. Tinder

What this means is that even if Jon Corzine is somehow dragged into court by private citizens, because you know damn good and well that the Justice Department will never, ever touch him, Corzine now has a legal precedent, likely from a bribed or otherwise coerced Federal Appeals Court, explicitly stating that an FCM can use customer deposits to pay its debts, and that the customers themselves are subjugated and have basically no legal right to their own monies, no matter what the law says, or what legal assurances, claims or guarantees are made to that customer about their funds held with an FCM or any other brokerage or depository institution. The "secured" party at the front of the line will always be the mega-bank who made the fraudulent loan using the stolen customer funds as collateral.

In other words, all customer funds in the United States are now the legal property of JP Morgan, Goldman Sachs, BNYM, or whichever megabank is the counterparty on the loans the FCM or depository institution takes out in order to fund its mega-levered proprietary in-house trading desks.

For the love of God, I don't know what more there could possibly be to say to snap you people out of your normalcy bias trance. You have GOT to get ALL MONIES out of the financial system NOW. This ruling sets precedence for every depository institution, not just futures brokerages. It is now legal in the United States for any financial institution to steal customer funds, borrow money against those funds for the uber-levered proprietary trading use of the financial institution, and the customers have ZERO CLAIM TO THEIR OWN FUNDS once they are in the custody of the financial institution.

The court has ruled that once your money passes out of your PHYSICAL POSSESSION, and I mean PHYSICAL possession, it is no longer yours, and you have no legal claim or legal recourse to it when it is stolen. This includes BANK ACCOUNTS. Money in a bank is in the possession of the BANK, not you. Do you comprehend this? The entire system is utterly devoid of any integrity or genuine security and is breaking down catastophically before our very eyes. You HAVE to comprehend that your money sitting in an account is no longer legally yours. You have to force your brain to process and comprehend this, no matter how incomprehensible it may seem. IT IS OVER. This is Marxist hell. We have arrived.

This ruling and precedent will be used by every brokerage, every bank, every insurance company and every pension fund to deny you your money when the financial system finally collapses, be it on Monday, or be it two years from now.

DO YOU UNDERSTAND?

You have GOT to GET OUT.

And all of this goes straight back to the criminal mafia that is the National Futures Association, and the fact that they have not actually been auditing those firms who were in the "cosa nostra", and allowing Ponzi schemes to operate with full bureaucratic protection for decades. Sentinel. PFG Best. The legal precedent enabling this protection racket and blatant fraud and thievery is fully in force, and what Corzine did at MF Global is now legally PROTECTED.

This is ecomonic treason.

Treason is a capital offense, meaning that the death penalty is fully justified, warranted and on the table, should the day ever come when a Second American Republic is established, and with it the re-establishment of the rule of law and justice in this land."

http://barnhardt.biz/

[charlesoakwood]

If he does this too quick he will completely debase the currency
and create an irreversible chaos.  If he takes all the money it will
be worthless, the only thing supporting it is faith and credit. 

Robbing everyone in one fell swoop won't cut it.  This, like the
"you didn't build this" exposure it  again puts him over the line
(exposes him) to too many who were previously complacent.   
It will backfire.  On the other hand, taking precautions is always
prudent.

Thank you for jacking up my weekend.
                                                       

[Pandora]

Solly Cholly; I'm not resting easy either.

[AlanS]

Are we there yet?

[John Florida]

Ain't this a bitch!

[BigAlSouth]

Couple of solutions:

Federal law that requires separation of customer cash.
Criminal penalties for corporate use of private capital entrusted to it.
-0r-
Do not keep liquid assets/cash in anything other than a federally insured account.

I disagre that banks can use your money without liability. If a bank fails, acount holders have protection. In the case of shareholders in a bank, that is another story. Shares are not insured.

I am of the opinion that this case wil not be allowed to stand without appeal. To much at risk.

[charlesoakwood]

They'll need to postpone it till after Romney's sworn in.

If the Thief in Chief is reelected all bets are off all laws are
gone and we are forfeit.

[Libertas]

Where is the risk?  My personal banking accounts, nah, not much, it's basically a transfer account, unless they rob it on payday, this has the lowest risk even if you don't discount Federal insurance plans (I am making the assumption they'll say "piss off" in a fully blown crisis anyway).  The real risk is where the real wealth is - IRAs, 401Ks, Brokerage accounts and pension funds.  I am pulling out of the latter items.

[Glock32]

Couple of solutions:

Federal law that requires separation of customer cash.
Criminal penalties for corporate use of private capital entrusted to it.
-0r-
Do not keep liquid assets/cash in anything other than a federally insured account.

I disagre that banks can use your money without liability. If a bank fails, acount holders have protection. In the case of shareholders in a bank, that is another story. Shares are not insured.

I am of the opinion that this case wil not be allowed to stand without appeal. To much at risk.

But BAS, you're assuming we still live under the Rule of Law.

[charlesoakwood]

Full Sentinel Ruling Link
Posted by Ann Barnhardt - August 12, AD 2012 6:51 PM MST

A reader with a Westlaw subscription downloaded this and then emailed it to me. Many thanks for that, as it is NOT published on the internet. Until now. Mwah-ha-ha-ha.

CLICK HERE for the Sentinel Federal Appeals Court Ruling of August 9, 2012  http://dl.dropbox.com/u/32961642/SentinelRuling.pdf


This commentary came from the fellow who sent this to me. I think it is spot-on.


[blockquote] Miss Barnhardt,

I thought you might be interested in reading the actual opinion of the In Re Sentinel Group case, which I have attached in PDF. It was very hard to find for some reason, and I had to access my Westlaw account in order to get it. I think it would be well worth your time to read it, as I am afraid that it appears to confirm what you have been saying.

The entire case reads like an after-the-fact rationalization of a predetermined conclusion. Years ago when I was with a different firm, I worked on numerous major institutional fraud and auditing cases, and I cannot recall a ruling even remotely similar - let alone from a federal court of appeals.

Please pay particular attention to the section on equitable subordination, on pages 6 through 8. Unbelievably, the court acknowledged in that section that even though some of the bankers lied under oath during the trial, that fact did not prove "sufficiently egregious" actions on the part of the bank.

I will quote the opinion: "Instead of finding that their testimony [i.e. their lies] justified a finding of egregious bank behavior, the district court essentially found that the bank officials were such artless liars that they couldn't have been concealing deliberate wrongdoing." See page 7, column 2.

So in other words, a U.S. Court of Appeals has found that if a banker lies under oath during a trial, that fact proves that the bank was innocent of any misconduct with respect to the subject matter of those lies. Did we get transported to bizarro world without knowing it?[/blockquote]

[Libertas]

Yup, Ann vindicated again.

Oh, and I hope this same court is equally blind when angry mobs that have been ripped off start decorating street lamps with the courts favorite thieves...after all, the mob is not committing a "sufficiently egregious" action as a result of their being robbed, right?

[charlesoakwood]

Aren't the courts complicit?

[IronDioPriest]

For a couple years after high school I worked at a Kosher meat packing plant. I was primarily there on the weekends for maintenance, so cattle processing was not happening. There were usually not any live cattle on the premises when I was working.

But there were a few times when I worked during the week, when the plant was in full production mode. I was always stricken by how the cattle in the corral area were packed in as they moved through, and how the corral funneled them down into a single-file line, awaiting their turn to meet their Kosher blessing/throat slitting by the rabbi, and finally, as their lifesblood drained, their final meeting with the hydraulic punch-pin device that dealt them their death blow at the top of the skull.

The sound of the butchering process was just on the other side of the killing station, and every animal that approached the rabbi surely saw and heard the killing of the animal before it. Yet they all moved forward, oblivious to the fate that was immediately ahead of them.

We are not cattle. We have the blessing of self-awareness and decisive action. But I still cannot escape the feeling sometimes that as a whole - as a people and a nation - we are being led to slaughter, and we move through the corral, into the line and await our death blow.

It doesn't have to be this way. But in the absence of people collectively understanding that everything - everything - is threatened and intended for destruction - we will continue to moo and move through the line.

[Libertas]

I always like to listen for the nervous laughter apart from the other giggles as I que up in any line and make "moo" sounds...those people could be worth knowing.

[Predator Don]

For a couple years after high school I worked at a Kosher meat packing plant. I was primarily there on the weekends for maintenance, so cattle processing was not happening. There were usually not any live cattle on the premises when I was working.

But there were a few times when I worked during the week, when the plant was in full production mode. I was always stricken by how the cattle in the corral area were packed in as they moved through, and how the corral funneled them down into a single-file line, awaiting their turn to meet their Kosher blessing/throat slitting by the rabbi, and finally, as their lifesblood drained, their final meeting with the hydraulic punch-pin device that dealt them their death blow at the top of the skull.

The sound of the butchering process was just on the other side of the killing station, and every animal that approached the rabbi surely saw and heard the killing of the animal before it. Yet they all moved forward, oblivious to the fate that was immediately ahead of them.

We are not cattle. We have the blessing of self-awareness and decisive action. But I still cannot escape the feeling sometimes that as a whole - as a people and a nation - we are being led to slaughter, and we move through the corral, into the line and await our death blow.

It doesn't have to be this way. But in the absence of people collectively understanding that everything - everything - is threatened and intended for destruction - we will continue to moo and move through the line.

As I stand in line to be felt up by a TSA agent.......