There was some blather about 'hypothecation,' whatever that is, suggesting under some circumstances what MF Global did was legal, or might have be legal. I didn't understand it, but evidently some brokerages including mine don't do any proprietary investing so should be o.k. I hope.
On Mon, Jun 4, 2012 at 6:26 PM, David Shemano <[email protected]>wrote: > Anyone can commit fraud, steal and break the law. There is no way to know > in advance that it won’t happen. If you want certainty, invest in > jewelry/gold bars and put in a safe underneath a floorboard in your house. > **** > > ** ** > > And it is wrong to say that MF Global “got away with it.” They (MG > Global) did not get away with anything – the company is bankrupt and its > principals are disgraced and will suffer real civil, if not criminal > liability. It is true that certain creditors of the trading affiliate were > enriched at the expense of the customers of the brokerage, and there will > be litigation for years to come on that issue. If those creditors knew > what was happening, they will ultimately have to give money back. If they > did not know, then we are dealing with two innocent parties, and the > respective rights are what they are.**** > > ** ** > > David**** > > ** ** > > *From:* [email protected] [mailto: > [email protected]] *On Behalf Of *[email protected] > *Sent:* Monday, June 04, 2012 3:06 PM > > *To:* Progressive Economics > *Subject:* Re: [Pen-l] IRA question**** > > ** ** > > . MF Global is a scandal, because money was improperly transferred from > the brokerage unit to proprietary trading affiliate when they were > desperate for cash.**** > > **** > > David Shemano**** > > **** > > *---** > *Thanks David, > > But this is basically why I was asking. If MF Global could get away with > making money disappear, why couldn't Citi? > > Joanna**** > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > >
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