Submitted by Tyler Durden
On the three month bankruptcy anniversary of the company whose rehypothecation gimmicks will one day be seen as a harbinger of everything that isĀ broken with the multi-trillion ponzi system, but not just yet despite loud warnings otherwise, we are getting close to a final verdict of where the $1.2 billion (and possibly more as originally predicted by Zero Hedge – see below) in commingled client money may have gone. Note the use of the passive voice because using the active, as in money that MF Global executives stole from clients, is prohibited in a legal system in which nobody goes to jail for something as modest as $1.2 billion in theft. That verdict? “Vaporized.”
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My broker rehypothecates holdings in margin accounts only. Cash accounts should be safe from rehypothecation.
Or so you are told…….
Agreed. My broker will re-register my long term holdings in my name and mail the certificates for a fee.
How is Corzine not sharing a cell w. Madoff right now?
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