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Friday
Aug172012

Letter From Satan: Dear Brother Corzine

Dear Brother Corzine:

Here's an early Christmas present even though I find that holiday so loathsome, as you know.  It's a federal court of appeals decision that came out last week.

I trust you'll find it as comforting as I do.

http://scholar.google.com/scholar_case?case=9044222163921408620&hl=en&as_sdt=2,34

Excerpt:

"Instead of maintaining customer assets in segregated accounts as required by law, Sentinel had pledged hundreds of millions of dollars in customer assets to secure an overnight loan at the Bank of New York, now Bank of New York Mellon. This left the bank in a secured position on Sentinel's $312 million loan but its customers out millions. After filing for bankruptcy, Sentinel's liquidation trustee brought a variety of claims against the bank to dislodge its secured position. After extensive proceedings, including more than two weeks of trial over the course of more than a month, the district court rejected the claims. This appeal raises concerns about Sentinel's business practices and the degree to which the bank knew about them, but based on the district court's factual findings, we affirm."

Yours in Untrammeled Malevolence,

Satan

 

---

UPDATE - Satan Clarifies His Letter

To be clear about my minions' fine work in punishing innocent account holders by rewarding evildoers with the contents of those accounts: the court freely acknowledges, in the 1st sentence of the opinion, that Sentinel's transfer of those accounts--to the Honorable Jon Corzine's colleagues at Bank of New York Mellon ("Bank")--was illegal.

Clinging to the notion that the rule of law has any place in my Kingdom of Evil, the account holders tried to prove they were entitled to their own money, even after it was stolen, under a theory of "equitable subordination," under which Bank's claim to the purloined funds would have been subordinated to those naive account holders. Too succeed under the dead letter of law, the account holders had to prove that the Bank acted inequitably, that is, with conduct that was egregious.

As a humorous demonstration of my raw dark power, I dispatched to court several officials of the Bank--all pathological liars--whose own email correspondence demonstrates to a certainty that they knew that the $300 million transferred could not possibly have belonged to Sentinel, but must instead have belonged to the fools banking there.

Predictably, the Bank officials perjured themselves repeatedly at trial.

It is on the following basis that I will appoint all three appellate court panel members to an Executive Suite in Hell.  What follows is a perversion of justice so remarkably devious that I'm inclined to strike the judicial triumvirate dead this instant so that we may enjoy cocktails together before dining on slaughtered puppies this evening:

"Instead of finding that their testimony 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.  Instead, the bank officials were simply trying to cover up their own incompetence."

 

Keep on Rocking in the Free World,

 

The Devil Himself

 

P.S. - This court ruling is not good news for those who want to see you in prison...

---

Corzine congressional testimony:

Dec. 08 2011 - In testimony to congress, former MF Global CEO Jon Corzine apologized but said he did not know what happened to the missing customer funds.

--

Editor's Note - It's $1.6 trillion, not $1.2 trillion.

And Corzine is lying.  Read the following links.

 

 

 

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Reader Comments (27)

NOTE TO READERS

I did not write this. I didn't want to spoil the story and the simplistic elegance of Satan's letter by describing its origin in the post. It was posted last night by Moloch, who is in fact Cheyenne. Sorry man. Had to out you. This was too brilliant to go unclaimed.

http://dailybail.com/home/reason-1-that-jon-corzine-is-not-in-prison-corzine-and-obama.html#comment18843974
Aug 14, 2012 at 1:13 PM | Registered CommenterDailyBail
Independent Trader Talks About Losing Everything In MF Global Theft: "My Life Savings Are Now Frozen, Thanks To The Snake Jon Corzine"

http://dailybail.com/home/independent-trader-talks-about-losing-everything-in-mf-globa.html
Aug 14, 2012 at 1:38 PM | Registered CommenterDailyBail
Normally I would be very anti Moloch, not real big on offering up the children to the furnace...

Pretty good.
Aug 14, 2012 at 1:51 PM | Unregistered CommenterS. Gompers
Special Prosecutor, please.
Aug 14, 2012 at 1:54 PM | Registered CommenterDailyBail
DB "Special Prosecutor, please' " ROFL yea I'm sure they will get right on that. I guess you haven't been around long enough yet to be cynical enough. This should be a WARNING to you all the system is corrupt your money would be safer under your mattress!

I wonder if people will even realize what this means? Ann Barnhard sums it up


RED ALERT: IT'S OPEN SEASON ON ALL CUSTOMER FUNDS

snippet...

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.

in full

http://barnhardt.biz/

btw she also has the full ruling on site
Aug 14, 2012 at 2:13 PM | Unregistered CommenterLiberatedCitizen
Here's a new one DB! First read this and get your hopes hope (special prosecutor please) :)

Did We Just Find Someone to Take On the Banks?

http://www.bloomberg.com/news/2012-08-09/did-we-just-find-someone-to-take-on-the-banks-.html

Now the let down

Flash: So It Was Simple Extortion?

http://market-ticker.org/akcs-www?post=210151

Sorry to be so cynical that's what being older and living in the real world does to anyone who has been watching the corruption for years.

p.s. More transparency please :) (hope you know I'm JK)

OBAMA ADMINISTRATION SUED FOR RECORDS ABOUT BANKRUPT MF GLOBAL HOLDINGS LTD.

http://www.breitbart.com/Big-Government/2012/08/13/Obama-Administration-Sued-for-Records-about-Bankrupt-MF-Global-Holdings-Ltd
Aug 14, 2012 at 2:28 PM | Unregistered CommenterLiberatedCitizen
To be clear about my minions' fine work in punishing innocent account holders by rewarding evildoers with the contents of those accounts: the court freely acknowledges, in the 1st sentence of the opinion, that Sentinel's transfer of those accounts--to the Honorable Jon Corzine's colleagues at Bank of New York Mellon ("Bank")--was illegal.

Clinging to the notion that the rule of law has any place in my Kingdom of Evil, the account holders tried to prove they were entitled to their own money, even after it was stolen, under a theory of "equitable subordination," under which Bank's claim to the purloined funds would have been subordinated to those naive account holders. Too succeed under the dead letter of law, the account holders had to prove that the Bank acted inequitably, that is, with conduct that was egregious.

As a humorous demonstration of my raw dark power, I dispatched to court several officials of the Bank--all pathological liars--whose own emai correspondence demonstrates to a certainty that they knew that the $300 miillion transferred could not possibly have belonged to Sentinel, but must instead have belonged to the fools banking there.

Predictably, the Bank officials perjured themselves repeatedly at trial. It is on the following basis that I will appoint all three appellate court panel members to an Executive Suite in Hell. What follows is a perversion of justice so remarkably deviious that I'm inclined to strike the judicial triumvirate dead this instant so that we may enjoy cocktails before dining on slaughtered puppies this evening:

"Instead of finding that their testimony 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. Instead, the bank officials were simply trying to cover up their own incompetence."
Aug 14, 2012 at 2:32 PM | Unregistered CommenterThe Devil Himself
"Instead of finding that their testimony 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. Instead, the bank officials were simply trying to cover up their own incompetence."

---

And where did you find that juicy final quote?
Aug 14, 2012 at 3:23 PM | Registered CommenterDailyBail
Another take on this, a re-cap of the Barnhardt piece linked by LC.

http://lewrockwell.com/slavo/slavo114.html

The part I found most interesting here is how she harangues her readers to stop "cowering in normalcy bias, unable to deal with reality." This applies to so much of what we've seen happen over the last 4 years. So many otherwise intelligent people still believe in sham fictions like "liberal" and "conservative", or believe that the "rule of law" still exists.
Aug 14, 2012 at 3:51 PM | Unregistered CommenterPitchfork
Where I'm still looking for clarification is whether this ruling applies just to futures accounts, or would it also encompass all brokerage (fidelity, schwab, etrade) accounts?

Barnhart is saying all accounts, but I'm not convinced.
Aug 14, 2012 at 4:08 PM | Registered CommenterDailyBail
Mr. Bail:

Mr. Satan directs your attention to the google scholar opinion, linked above, wherein the juice may be found by searching on "artless". Alernatively, the quote may be found at pages 21-22 of the 7th Circuit's slip opinion by following this link:

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CEUQFjAA&url=http%3A%2F%2Fvolo.abi.org%2Fin-re-sentinel-management-group-inc%2Fopinion%2Fdownload&ei=MK0qUJTpEOHd0QHnxIGAAw&usg=AFQjCNGleKutk1Is7CMIZ9flO2Roc2y1iA

Mr. Pitchfork:

Your name sounds familiar. Have we met? Is Ms. Barnhardt trying to be ironic by screaming at Americans not to be cowed? Hopefully they'll be too riveted to the "election" to hear her speak truth like that.
Aug 14, 2012 at 4:10 PM | Unregistered CommenterBaal, Assistant to Mr. Satan, Esq.
Yeah thanks, I found it in the Barnhardt piece.
Aug 14, 2012 at 4:44 PM | Registered CommenterDailyBail
I will update when I hear back on my question about futures accounts vs. plain vanilla brokerage accounts. This is already a big deal with futures accounts not safe, but if this were to apply to schwab and fidelity accounts for example, look the F out.
Aug 14, 2012 at 4:46 PM | Registered CommenterDailyBail
DB I am not positive but I believe this will affect all Brokerages

Sentinel ruling may hurt MF Global clients

http://www.reuters.com/article/2012/08/10/us-sentinel-appeals-decision-idUSBRE87900T20120810

This will help people understand what a Brokerage encompasses

Are Banks and Brokers All the Same?

https://www.iramarket.com/post/show/are-banks-the-same?_ts=1344978242957

This is just for the hell of it...

Investigations galore
It’s not just LIBOR. Banks and brokers are under scrutiny from all quarters

http://www.economist.com/node/21558583
Aug 14, 2012 at 5:06 PM | Unregistered CommenterLiberatedCitizen
DB--

Barnhardt is correct assuming the financial institution holding the funds goes into a Chapter 11 bankruptcy.

The court's entire analysis of who had held the priority claim (account holders or the transferee, Bank of NY) turned on the bankruptcy statute alone. Now, whether a party meets or fails the requirements of that statute may differ by the type of instittution at issue, but the applicable legal standards all flow from bankruptcy statutes and case law.

That's really bad news for account holders going forward. Here Sentinel was caught in a flat violation of the law involving segregated accounts, and the transferee had every reason to know the transfer was not above board. AND YET THE ACCOUNT HOLDERS GOT FUCKED.

Frankly, it's difficult to imagine a violation more blatantly fraudulent--short of a time-stamped videotape of, say, Jon Corzine calling Jamie Dimon directly and telling him, "Yo, JD, I've got 1.5 billion of customer funds I just looted right here in my office--should I wire it over?"

Separately, it may be that financial insitutions of a different type than Sentinel, when bankrupt, would be treated under a different chapter of the bankruptcy code, and with correspondingly different standards.

But aside from those two qualifiers, which look pretty thin, I can't see any reason why it's not open season right now.

Coupled with recent disclosures of living wills for the TBTF banks, together with supposedly secret plans by the 5 largest banks for what to do if a sudden financial calamity hits, the writing is on the wall for anyone who cares to read it: GET THE FUCK OUT. NOW.
Aug 14, 2012 at 5:23 PM | Unregistered CommenterCheyenne
Satan, do you remember this particular event? Well guess what. I now have permission from 'Dad' to do it again and "with a little help from my friends" .

http://bottlefuelrag.blogspot.com/2011/10/first-occupy-wall-street-protester.html

Yours in loving grace,

J.H.C.
Aug 14, 2012 at 5:38 PM | Unregistered CommenterJ.H.C.
BTW, I still have the greenest ride going. At least an ass doesn't catch on fire.
Aug 14, 2012 at 6:08 PM | Unregistered CommenterJ.H.C.
People and institutions who held accounts at Bear Stearns were not affected, but Bear was bailed out. I can't remember what happened with Lehman's account holders, if their funds were safe or tossed into the mix with the rest of the creditors.

I would think there would be calls for Congress to get involved in the wake of the Sentinel ruling. The idea that your money is not really your money if you keep it with Charles Schwab or Ameritrade would freak out everyone. Call me skeptical, but I see this as an issue that Congress will settle and likely soon. They all have brokerage accounts that they will want to protect.
Aug 14, 2012 at 6:14 PM | Registered CommenterDailyBail
Aug 14, 2012 at 7:02 PM | Unregistered CommenterLiberatedCitizen
The accounts at MF Global, weren't some of them simply uninvested piles of cash? I'd have to revisit all the write-ups about it, but I don't remember JPM taking futures positions as collateral or having to hold and or liquidate such positions. As I understand it, they took cash money. For that reason, I don't know why the ruling has anything to do with whether it's futures positions or anything else involved -- it's simply a ruling (somehow) that creditors have first claim to other people's money.

In other words, I don't see how this wouldn't apply to Schwab or Ameritrade accounts. However, do retail brokers typically lever up 10-1 and trade for their own accounts? I didn't think so, but I hope I'm right.
Aug 14, 2012 at 7:19 PM | Unregistered CommenterPitchfork
In other news, my retail broker/asset manager (not Schwab) keeps complaining I have too much uninvested cash. We do. But WTF am I going to do with it? My broker can't and won't try to time the market, and just considers asset allocation. I wouldn't be with the guy at all if it weren't for complicated family reasons, but what would you guys invest in in this climate? Gold and silver look attractive for the first time in a couple of years, but beyond that I don't know what to do. US stocks seem overpriced and bonds return very little with high risk. Should I consider an actively managed bond fund? Any other suggestions? I know this isn't an investment site, but this is about the only crowd I trust these days.
Aug 14, 2012 at 7:31 PM | Unregistered CommenterPitchfork
However, do retail brokers typically lever up 10-1 and trade for their own accounts? I didn't think so, but I hope I'm right.

---

That's why I'm not too worried about this. It would take something strange to bring down one of these retail shops. But if you remember, Etrade almost failed back in 2007 when their sub-prime exposure was exposed. They owned a mortgage financing subsidiary or something. I don't remember all the details, but their stock traded below $3 for at least 18 months after that. There was fear that they might fail. But I remember reading at the time the accounts would be protected.

Famous last words.
Aug 14, 2012 at 7:43 PM | Registered CommenterDailyBail
"I can't remember what happened with Lehman's account holders, if their funds were safe or tossed into the mix with the rest of the creditors."

Lehman's broker-dealer business wasn't part of the bankruptcy estate. It was sold to Barclays instead, which is not to say that the transcontinental transfer went off without a hitch:

http://www.4-traders.com/LEHMAN-BROTHERS-HOLDINGS-4021573/news/Lehman-Brothers-Holdings-Inc-Lehman-Trustee-Barclays-Continue-Fight-Over-Margin-Money-14019958/

The cast of characters in the link is interesting, to say the least.
Aug 14, 2012 at 8:24 PM | Unregistered CommenterCheyenne
Since I said I don't like gold and silver here, I thought I should add that I do own both, in the physical. I'm just not sure about adding more at current prices. I just don't see more QE this year. Markets are way too strong as it is, plus food inflation is starting to show its head again, albeit because of the drought.

Hopefully that clarifies.
Aug 15, 2012 at 1:16 PM | Unregistered CommenterDailyBail
Why did dick "dick" cheney write a letter to jon corzine?
Aug 17, 2012 at 11:50 AM | Unregistered CommenterHarry Johnson
Cheyenne Lehman is not dead

Who was the biggest buyer of U.S. commercial real estate in the past 12 months?

It wasn't a big private equity firm or luxury developer. Rather, it was the estate of Lehman Brothers, which is still making deals nearly four years after its demise. In the past year, it paid $3 billion to take over Archstone from its creditors, and it is now preparing to take the firm public.

more
http://www.ibtimes.com/articles/373627/20120814/lehman-estate-real-creditors.htm
Sep 5, 2012 at 11:05 PM | Unregistered CommenterLiberatedCitizen
The ruling here obviously touches on issues relating to what's happened to Cypriot depositors (albeit under different law). After issuing the Sentinel opinion on 8/9/12, the 7th Circuit withdrew it without explanation on 11/30/12:

http://www.reuters.com/article/2012/12/04/us-banks-bny-sentinel-idUSBRE8B303Z20121204

The timing is curious given what happened just 2 weeks later:

"Confiscating the customer deposits in Cyprus banks, it seems, was not a one-off, desperate idea of a few Eurozone 'troika' officials scrambling to salvage their balance sheets. A joint paper by the US Federal Deposit Insurance Corporation and the Bank of England dated December 10, 2012, shows that these plans have been long in the making; that they originated with the G20 Financial Stability Board in Basel, Switzerland (discussed earlier here); and that the result will be to deliver clear title to the banks of depositor funds."

http://webofdebt.wordpress.com/2013/03/28/it-can-happen-here-the-confiscation-scheme-planned-for-us-and-uk-depositors

You'll find now that the link above to the Sentinel opinion on google scholar is dead. Interesting.
Apr 5, 2013 at 3:57 AM | Registered CommenterCheyenne

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