Contributors Note: Word from EVERYWHERE is that the global derivative implosion has begun and THERE IS NO STOPPING IT NOW! It is now out in the open with MF Global and the dominoes are falling fast.
(VN: So what is Global hiding that they can't expose? They are dead so why fight disclosures? And the fall guy is the criminal who had to resign as Governor of NJ, so does this smell like a set up of sorts? I just have to figure out how and why this is happening, as you know, Bernanke would have bailed them out had it been a Goldman Sachs CEO who did this and then allowed the company to pay him a huge bonus, hmmm, maybe things are working in our favor for a change. We will see....I don't trust anything any of them do anymore. Oh, thats right, its election time. Duh, why did I not think of that sooner, lol Oh, just had a thought.... they got the wealth from the middle class and working America and now they are going after the bourgoise, the lesser monied people who invest in markets etc. Then will be the millionaires, then the billionaires will be last, so the trillionaires will own the planet. I have no proof of that, but its logical when you think about it. They never intended to have anyone standing next to them once they used the others to bring the nation down. That is just the way they are. Take heed billionaires.... did you hear that Bill Gates? )
Panic Behind The MF Scenes As Company Refuses To Disclose Information To Regulators Even In Death! (VN: Is this about Derivatives??)
http://www.zerohedge.com/news/panic-behind-mf-scenes-company-refuses-disclose-information-regulators-even-death
Submitted by Tyler Durden on 10/31/2011, Contributed to Vatic Project by anonymous, Montana, USA
Zero Hedge publication
As in life, so in death. Reuters reports that "U.S. regulators are unhappy with the failure of MF Global Holdings Ltd to provide them with the required data and records, a source close to one regulator told Reuters on Monday.
"So far they've been very disappointed with the cooperation in the fulsomeness of records and data from MF," the source said, noting regulators have been working with the firm since late last week.
"They were supposed to be able to show us their books and they're supposed to be able to tell us what's what and where their customer funds are and how they've been segregated and protected and to date we don't have the information that we should have," the individual told Reuters.
" Seriously, as Erin Burnett would say, you are already bankrupt. Just how much worse is it if you even in death you still are hiding secrets? And at this point it should be obvious to everyone: whatever MF is hiding is not something that will hurt it or much less its stakeholders for which the management team obviously never cared one iota.
After all the company is already dead. Whatever is on its books has huge impacts to those either behind the corporate veil, read Mr. Corzine, who may or may not have regulatory issues arising from 10(b)-5 "concerns", or more probably, to other banks and Primary Dealers. And with even one simple affidavit still to be filed in Bankruptcy Court, the panic behind the scene is palpable.
From Reuters:
UPDATED: MF Global (of New Jersey) files for bankruptcy
http://www.heraldtribune.com/article/20111031/BREAKING/111039957/-1/sports?Title=UPDATED-Regulators-investigating-hundreds-of-millions-of-dollars-missing-from-MF-Global
MF Global, which filed for bankruptcy protection on Monday, is the biggest U.S. casualty of Europe's debt crisis, and the seventh-largest bankruptcy by assets in U.S. history.
Regulators had expressed "grave concerns" about the viability of MF Global, which filed for bankruptcy only after "no viable alternative was available in the limited time leading up to the regulators' deadline," the company's chief operating officer, Bradley Abelow, said in a court filing.
U.S. regulators held a series of calls on Monday related to MF Global.
The Financial Stability Oversight Council, which is headed by the Treasury Department, received "a series of oral reports" from the Securities and Exchange Commission, the Commodity Futures Trading Commission and the Federal Reserve, according to one Treasury Department official.So: just what secrets is the corpse of MF about to reveal? We, for one, can't wait.
No other details of the calls were provided.
Additional info on the bancruptcy filing from Reuters
MF Global filed for bankruptcy protection for the United States parent company on Monday, the first American financial casualty of the European debt crisis.
In the Chapter 11 filing in Federal Bankruptcy Court in Manhattan, the firm’s parent company listed assets of $100 million to $500 million and liabilities of more than $1 billion. JPMorgan Chase is identified as the biggest creditor, as the administrative agent for a $1.2 billion revolving credit facility. The bank itself only has about an $80 million exposure to the MF Global loan, having syndicated the rest, according to a person briefed on the matter.
Deutsche Bank is the second biggest, with a $325 million claim on behalf of bondholders.
As recently as Sunday night, MF Global was expected to sell some assets to Interactive Brokers Group, a Connecticut-based brokerage firm. But by Monday afternoon, the deal appeared almost certainly dead, according to people briefed on the matter.
An initial obstacle to the deal emerged over the weekend when the Commodity Futures Trading Commission, one of several federal regulators involved in the talks, raised questions about the capital levels at MF Global, these people said.
Interactive Brokers later raised similar concerns, leading them to call off the deal.
The acquisition would have been somewhat similar to what Lehman Brothers did in 2008, when its parent filed for bankruptcy but Barclays bought some of its assets.
Earlier on Monday, the Federal Reserve Bank of New York and a number of exchanges said they had suspended MF Global from conducting new business with them.
The bankruptcy filing is a humbling blow for the firm’s chief executive, Jon S. Corzine, who took the reins of the firm in 2010 after a decade as a United States senator and governor of New Jersey
The law firm of Skadden, Arps, Slate, Meagher & Flom is representing MF Global in the bankruptcy proceedings. The descent into bankruptcy came after a week when investors fled MF Global and credit ratings agencies cut their ratings on the firm to junk status.
The agencies said they were concerned that MF Global lacked a sufficient capital cushion if its $6.3 billion in European debt went bad. The firm took a gamble in buying the troubled bonds of Italy, Portugal, Spain and Ireland last year, calculating that they would soon recover.
Faced with dwindling cash, MF Global tapped a $1.3 billion credit line last week.
Earlier:
MF Global filed for bankruptcy protection for the United States parent company today, the first American financial casualty of the European debt crisis.
In the Chapter 11 filing in Federal Bankruptcy Court in Manhattan, the firm listed assets of between $100 million and $500 million and liabilities of between $10 million to $50 million. JPMorgan is identified as the biggest creditor, with a claim of $1.2 billion as the trustee on behalf of bondholders. Deutsche Bank is the second biggest, with a $325 million claim on behalf of bondholders. (VN: Well the good news is they realize we are no longer stupid and would not bail them out no matter what. So I guess they aren't too big to fail. good, that is what they get for gambling like some mafia don)
As part of the bankruptcy, Interactive Brokers had been expected to commit to buy the assets of MF Global. That would be somewhat similar to what Lehman Brothers did in 2008, when its parent filed for bankruptcy but Barclays bought some of the assets. It is not yet clear whether MF Global has a deal.
Earlier today, the Federal Reserve Bank of New York and a number of exchanges said that they had suspended MF Global from conducting new business with them. (VN: Must be an election season, otherwise, the Fed Res would have done what they always do.... ignore the public or ignore doing the right thing.)
The bankruptcy filing is a humbling blow for the firm's chief executive, Jon S. Corzine, who took the reins in early 2010 after a decade as a U.S. Senator and governor in New Jersey. (VN: What? Shareholders put a Government hack in to run their corporation??? Now that is suspicious as heck, was this an intentional default?)
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