S&P DOWNGRADE OF THREE MAJOR CLEARINGHOUSES

12-8-2011 MF GLOBAL - House Agriculture Committee hearing:

At Corzine hearing CTFC Commissioner acknowledged what some already knew -- that yes firms could use customer segregated accounts for repurchase agreements (rehypothecation) involving securities of a sovereign nation. And the loophole still exists. No doubt $100's of billions of client funds will be lost (stolen) through this loophole. No doubt every major brokerage likewise is taking advantage of the loophole as MF Global did and has $100's of billions of client segregated funds at risk in the securities of sovereign nations!

UPDATE: MF GLOBAL WARNING:

As a result of the MF Global bankruptcy, it is now being made public a little known FACT -- it is LEGAL for a firm to co-mingle client funds with firm funds when the co-mingling comes about by reason of involvement with the securities of a sovereign nation. That legality is the defense to be asserted by MF Global against claims that it illegally co-mingled client funds with firm funds. THAT MEANS NO ONE's MONEY IS SAFE in Schwab, E-trade, Ameritrade, Fidelity, Banks, etc. because YOUR MONEY CAN LEGALLY be used by any firm if the money is being used in connection with the securities of a sovereign nation!

Ben Bernanke Speech - Financial Markets Conference 2011.

Bernanke has stated that tough rules are necessary to ensure that clearinghouses can serve their position as intermediaries, i.e., liquidity providers, for the trillions of dollars in derivative transactions. The derivative market is estimated at over a quadtrillion USD. The clearinghouses are not able to function as vital intermediaries for derivative market transactions in a big enough crisis given that the market is at about a quadtrillion USD and Bernanke knows it. The crisis will occur when clearinghouses can not provide the liquidity; when clearinghouses default. Clearinghouses guarantee settlement of stock, options and bond transactions as well as other transactions. Chaos at the clearinghouses in the future is a given and it will cause loss of great wealth when clearinghouses fail in their role as liquidity providers--stocks, options, bonds; derivative markets, bank check clearing.

The derivative market is the shadow banking system and the globalist bankers intend to destroy the derivative market in order to trigger the worst economic crisis yet to come and it is that crisis that will be used by globalist bankers to try to persuade politicians to agree to the creation of an enforcement entity that has global control over every bank, over every financial institution to legally enforce compliance with written agreements. Geithner states that agreement is made on paper (for instance Basel III Agreement) but that there exists no means to enforce compliance with written agreements.

Eliminate the US Central Bank which exercises federal government sanctioned control over state chartered banks. States need to exercise their power. Power responds to power and there is no equal in power to the US Federal Government other than the State Governments.

Owners of state chartered banks are more closely aligned with the community and operate more in line with the interests of the people. The globalist bankers have a different agenda for the people and being far removed from the people, they have no compulsion to act in a manner benefiting the interests of the people.

Category:

People & Blogs

Tags:

• mf
• global
• corzine
• louis
• freeh
• hillary
• clinton
• obama
• nato
• iran
• war
• world
• putin
• rtn
• max
• keiser
• peter
• schiff
• gerald
• celente
• msnbc
• cnbc
• lindsey
• williams
• dr
• deagle
• larouche
• dwts
• mtv
• vh1
• bikini
• kardashian
• tiger
• woods
• hulk
• hogan
• virgin
• mary
• pope
• ratzinger
• nazi
• gld
• silver
• gold
• housing
• market
• foreclosures
• bank
• of
• america
• goldman
• sachs
• rick
• perry
• ron
• paul
• glenn
• beck
• coast
• to
• am
• nascar
• philadelphia
• eagles
• raising
• sheep
• chickens
• greenhouse

[staywithtruth]

On September 1, 2011, MF Holdings, the parent company of MF Global, announced that FINRA required MFG to come up with capital to meet the requirements of SEC Rule 15c3-1. Specifically, MFG's Repurchase to Maturity (RTMs) had to be revalued under FINRA's ruling which revaluation meant MFG had to come up with money and that caused a liquidity crunch for MFG.

[staywithtruth]

The Wall Street Journal waited until October 17, 2011 to publish FINRA's ruling. Two weeks after the WSJ story, MF Global filed for bankruptcy. Apparently, few knew about FINRA demand upon MFG & having read it in the WSJ, too many took action to withdraw funds from MFG causing MFG to collapse. Curious time lapse between FINRA ruling & WSJ article, it permitted the big guys to get out of MFG before the ruling became widely known. Corzine was one of the big guys to get out in August.